(5) Subject to subsection (9) below, if the Agency receives an
apportionment notice and the application for revocation referred to in
subsection (4) above, the Agency shall—
(a) revoke the old licence;
(b) if the holder is to continue the abstraction in part and a licence
is required under this Chapter for that purpose, grant to the
holder of the old licence a licence relating to that part of the
(c) grant to each successor who requires a licence under this
Chapter in order to carry on his part of the abstraction a licence
relating to that part of the abstraction.
(6) Sections 34 to 45 above shall not apply to the grant of a new licence
under subsection (5) above.
(7) Subject to section 46 above and to any provision of regulations made
under section 59D(1) below, each new licence to be granted under
subsection (5) above shall be granted subject to provisions which
correspond as nearly as practicable to those of the old licence in relation
to the part of the abstraction to be authorised by the new licence.
(8) The revocation of the old licence and the grant of the new licences shall
(a) from the date on which the Agency revokes the old licence and
grants the new ones; or
(b) from the date specified in the apportionment notice, if later.
(9) The Agency shall not grant a new licence to the holder of the old licence
or to a successor if, by virtue of an exemption, the restriction on
abstraction would not apply to that part of the abstraction proposed in
relation to him in the apportionment notice.
(10) For the purposes of this Chapter, a person (whether the holder of the
old licence or a successor) who proposes to carry on a part of the
abstraction in the circumstances mentioned in subsection (9) above
shall, if the old licence was a full licence, be taken to have the right to
do so in relation to that part, subject to subsection (11) below.
(11) For the purposes of this Chapter, a person shall cease to be taken to
have a right, by virtue of subsection (10) above, to carry on an
(a) during a period of four years that person does not carry out any
such abstraction; or
(b) following an order under section 27A(1) above or regulations
under section 33A above, that person is granted a full licence in
respect of abstraction from the same point.
(12) For the purposes of section 39A above, a new licence granted under
subsection (5) above shall be treated as if it (together with any other
new licence granted by virtue of the relevant apportionment notice)
had been granted at the time of, and in place of, the grant of the old
(13) In this section—
“exemption” means the disapplication of the restriction on
abstraction under or by virtue of section 27 or 33A above; and
“point of abstraction” and “right of access” have the same
meanings as in section 59A above.
59D Apportionment of licence to abstract: supplementary
(1) The Secretary of State may make regulations about the provisions to be
contained in licences granted under section 59C above.
(2) Nothing in section 59C above shall affect the liability of the holder of
the old licence for any failure by him, before the revocation of that
licence took effect, to comply with any condition or requirement of that
(3) If the holder of the old licence is a person in whom the old licence has
vested under section 59B above, an apportionment notice shall be of no
effect unless the notice required by section 59B(4) has been given.
(4) In this section, “apportionment notice” and “old licence” have the same
meanings as in section 59C above.”
(2) In section 47 of the WRA (holders of licence)—
(a) for subsection (2) there is substituted—
“(2) The person to whom a licence under this Chapter is granted to
abstract water or to obstruct or impede any inland waters is the
holder of the licence for the purposes of this Act, subject to
sections 59A to 59C and 67 below.”,
(b) subsection (3) is omitted.
(3) In section 189 of the WRA (register of abstraction and impounding licences), in
subsection (1)(b), for the words from “section 49” to the end there is substituted
“section 59A, 59B or 59C above”.
(4) Sections 49 and 50 of the WRA (which relate to the succession to licences to
abstract water) shall cease to have effect.
(5) Subsection (4) does not affect the succession to a licence to abstract water where
the death or other act or event referred to in section 49(2)(a) or 50(1)(a) or (b) of
the WRA occurred before the coming into force of that subsection, and section
49 of the WRA or (as applicable) any regulations under section 50 of the WRA
which were in force immediately before the coming into force of subsection (4)
are to continue to have effect in relation to such a case despite the repeal of the
Claims and compensation
24 Claims arising out of water abstraction
(1) After section 48 of the WRA there is inserted—
“48A Civil remedies for loss or damage due to water abstraction
(1) Subject to subsection (7) below and to section 79 (including that section
as applied by section 79A(9)) below, a person who abstracts water from
any inland waters or underground strata (an “abstractor”) shall not by
that abstraction cause loss or damage to another person.
(2) A person who suffers such loss or damage (a “relevant person”) may
bring a claim against the abstractor.
(3) Such a claim shall be treated as one in tort for breach of statutory duty.
(4) In proceedings in respect of a claim under this section, the court may
not grant an injunction against the abstractor if that would risk
interrupting the supply of water to the public, or would put public
health or safety at risk.
(5) Except as provided in this section, no claim may be made in civil
proceedings by a person (whether or not a relevant person) against an
abstractor in respect of loss or damage caused by his abstraction of
(6) Nothing in this section prevents or affects a claim for negligence or
breach of contract.
(7) This section does not apply, and no claim may be brought under this
section, where the loss or damage is loss or damage caused by an
abstractor acting in pursuance of a licence under this Chapter and—
(a) in respect of which a person is entitled to bring a claim under
section 60 below (or would be so entitled if there were a breach
of the duty referred to in that section);
(b) in respect of which a person would have been entitled to bring
a claim under section 60 below but for an express provision
(including, for example, section 39(1A) above and section
59C(6) below) disapplying that duty; or
(c) constituting grounds on which a person is entitled to apply to
the Secretary of State under section 55 below (or would be so
entitled but for subsection (2) of that section) for the revocation
or variation of that licence,
but without prejudice to the application of section 48 above.”
(2) In section 48 of the WRA (general effect of licence), in subsection (2), after
“supply” there is inserted “(other than an abstraction in respect of which a
claim could be brought under section 48A below, in which case that section
(3) In relation to loss or damage suffered before the coming into force of this
(a) section 48A of the WRA inserted by subsection (1) of this section does
not apply, and
(b) section 48 of, and paragraphs 1(2) and 2 of Schedule 7 to, the WRA
continue to have effect as if subsection (2) of this section were not in
25 Compensation for modification of licence on direction of Secretary of State
(1) Section 61 of the WRA (compensation where licence modified on direction of
the Secretary of State) is amended in accordance with subsections (2) and (3).
(2) In subsection (4), for “seven” there is substituted “four”.
(3) After subsection (4) there is inserted—
“(4A) No compensation shall be payable under this section in respect of the
variation of a full licence, or of a transfer licence which specifies a
minimum value under section 46(2A) above, so as to reduce the
quantity of water which the holder of the licence is authorised by the
licence to abstract from the source of supply to which the licence relates
(a) the ground for varying the licence is that the Secretary of State
is satisfied that the variation is necessary in order to protect the
availability of water in the source of supply to which the licence
(b) the variation does not reduce the quantity of water which the
holder of the licence is authorised by the licence to abstract to
less than the minimum value specified in the licence under
section 46(2A) above for the purposes of this subsection; and
(c) the conditions set out in subsection (4B) below are satisfied.
(4B) Those conditions are that—
(a) the licence was granted after the coming into force of section 19
of the Water Act 2003;
(b) the variation is made no sooner than the end of the period of six
years beginning with the date on which the licence took effect;
(c) the variation takes effect no sooner than the end of the period of
six years beginning with the date of the variation.”
(4) The amendment made by subsection (2) has effect in relation to the revocation
or variation of a licence only if the period referred to in section 61(4) of the
WRA during which no water was abstracted in pursuance of the licence began
after the coming into force of that subsection.
26 Recovery of compensation from new licence-holder
After section 61 of the WRA there is inserted—
“61A Recovery of compensation from new licence-holder
(1) This section applies where compensation has been paid under section
61 above to the holder of a licence (“licence A”) following its revocation,
(a) the holder of licence A was a water undertaker;
(b) at the time of the revocation an application from a qualifying
person for a licence to abstract water (“licence B”) was
(c) if the Agency had granted licence B while licence A still had
effect, the Agency would have been in breach of the duty
imposed on it by section 39(1) above owed to the holder of
(d) the ground for revoking licence A was that the Agency was of
the view that in the interests of greater efficiency in the use of
water resources it would be better for licence B to be granted
and licence A revoked; and
(e) the Agency proposes to grant licence B.
(2) If this section applies, the Agency may (if licence B is granted) recover
from the qualifying person the amount of the compensation referred to
in subsection (1) above (or such lesser amount as the Agency
(3) Subsection (6) of section 41 of the 1995 Act (which confers powers to
make schemes imposing charges) shall apply to the amount referred to
in subsection (2) above as if it were a charge due and payable to the
Agency in respect of the subsistence of licence B.
(4) In this section, “qualifying person” means—
(a) a water undertaker; or
(b) a person who has made an application for an appointment or
variation replacing a company as a water undertaker under
section 8 of the Water Industry Act 1991 which has not been
27 Withdrawal of compensation for certain revocations and variations
(1) This section applies where—
(a) a licence to abstract water is revoked or varied on or after 15th July 2012
in pursuance of a direction under section 54 or 56 of the WRA;
(b) the licence was granted before the coming into force of section 19 of this
(c) the licence is one which is expressed to remain in force until revoked;
(d) the ground for revoking or varying the licence is that the Secretary of
State is satisfied that the revocation or variation is necessary in order to
protect from serious damage—
(i) any inland waters,
(ii) any water contained in underground strata,
(iii) any underground strata themselves,
or any flora or fauna dependent on any of them.
(2) Where this section applies, no compensation is payable under section 61 of the
WRA in respect of the revocation or variation of the licence.
(3) Expressions used in sub-paragraphs (i), (ii) and (iii) of subsection (1)(d) are to
be construed in accordance with section 221 of the WRA, and “waters”, in
relation to a lake, pond, river or watercourse which is for the time being dry,
includes its bottom, channel or bed.
Water resources management schemes
28 Water resources management schemes: other abstractors
After section 20 of the WRA there is inserted—
“20A Water resources management schemes: other abstractors
(1) The Agency may enter into and maintain such arrangements with
holders of abstraction licences other than water undertakers for
securing the proper management or operation of—
(a) the waters from which they have the right by virtue of their
licences to abstract water; and
(b) any reservoirs, apparatus or other works which are used for the
purposes of or in connection with their abstractions and which
belong to them, are operated by them or are otherwise under
as the Agency from time to time considers appropriate for the purpose
of carrying out its functions under section 6(2) of the 1995 Act.
(2) Without prejudice to the power of the Agency and any holder of an
abstraction licence to include any such provision as may be agreed
between them in arrangements under this section, such arrangements
(a) make provision by virtue of subsection (1)(a) above with respect
to the construction or installation of any reservoirs, apparatus
or other works which the holder of the licence will use for the
purposes of or in connection with his abstraction;
(b) contain provision requiring payments to be made by the
Agency to the holder of the licence; and
(c) require the reference to and determination by the Secretary of
State or the Water Services Regulation Authority of questions
arising under the arrangements.
(3) The Agency shall send a copy of any arrangements entered into by it
under this section to the Secretary of State.
(4) In this section, references to abstraction licences are to licences under
Chapter 2 of this Part to abstract water.”
29 Water resources management schemes: referral to Secretary of State
(1) After section 20A of the WRA (inserted by section 28) there is inserted—
“20B Water resources management schemes: referral to Secretary of State
(1) This section applies where—
(a) the Agency has sought to enter into arrangements acceptable to
it under section 20 or 20A above, but is satisfied that the other
party is unwilling to enter into such arrangements or to do so on
terms appearing to the Agency to be reasonable; or
(b) having entered into such arrangements, the Agency has sought
to renew or vary them but is satisfied that the other party is
unwilling to do so or to do so on terms appearing to the Agency
to be reasonable.
(2) Where this section applies, the Agency may refer to the Secretary of
State the question (as the case may be)—
(a) whether such arrangements should be entered into, and if so, on
what terms; or
(b) whether the arrangements should be renewed or varied (as the
case may be) and if so, on what terms.
(3) If the Secretary of State determines that arrangements should be
entered into or (as the case may be) renewed or varied, such
arrangements on the terms determined by the Secretary of State shall be
(a) by civil proceedings by the Secretary of State for an injunction
or for any other appropriate relief; and
(b) where the other party is a water undertaker, also under section
18 of the Water Industry Act 1991 (enforcement orders) by the
Secretary of State.
(4) The functions of the Secretary of State under subsection (2) above shall
be treated for the purposes of section 114 of the 1995 Act (delegation or
reference of appeals) as if they were functions to which paragraph (a)
of subsection (1) of that section applied.”
30 Enforcement notices, and related procedures and offences
After section 25 of the WRA there is inserted—
“25A Enforcement notices
(1) Subject to the following provisions of this section, where it appears to
the Agency that a person is—
(a) in breach of section 24(1) or (2) or section 25(1) above; or
(b) for the purposes of section 24 or 25 above a holder of a licence
under this Chapter and has not complied with a condition or
requirement imposed by the provisions, as for the time being in
force, of that licence,
the Agency shall be entitled to serve an enforcement notice on him if the
condition in subsection (2) below is satisfied.
(2) The condition is that it appears to the Agency that the breach or failure
to comply is causing or is likely to cause significant damage to the
(3) An enforcement notice is a notice requiring the person on whom it is
(a) to cease his breach of section 24(1) or (2) or section 25(1) above,
or to comply with the condition or requirement in question; and
(b) to carry out any works or operations specified in the notice.
(4) The works or operations which may be specified are works or
operations which it appears to the Agency are appropriate for the
purpose of remedying or mitigating the effects of the breach or failure
to comply, and may include—
(a) works or operations for the purpose, so far as it is reasonably
practicable to do so, of restoring any affected waters, including
any flora and fauna dependent on them, to their state
immediately before the breach or failure to comply; and
(b) in the case of a breach of section 25(1) above, the removal of any
unauthorised impounding works or the reversal of any
unauthorised alteration to impounding works.
(5) An enforcement notice must specify the periods within which the
person on whom it is served must do each of the things specified in the