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(a) its activities during that year; and | |
(b) the activities of the Competition Commission during that year | |
in respect of any references made by it. | |
(2) The annual report for each year shall include— | |
(a) a general survey of developments in respect of matters falling | 5 |
within the scope of the Authority’s functions; | |
(b) a report on the progress of the projects described in the forward | |
work programme for that year; | |
(c) a summary of final and provisional orders made and penalties | |
imposed by the Authority during the year; | 10 |
(d) a report on such matters relating to any relevant undertaker | |
whose area is wholly or mainly in Wales as the Assembly may | |
from time to time require; and | |
(e) a report on such other matters as the Secretary of State may | |
from time to time require. | 15 |
(3) The annual report for each year shall set out any general directions | |
given by the Secretary of State under section 27(3) above. | |
(4) The Secretary of State or (as the case may be) the Assembly shall consult | |
the Authority before exercising the power under subsection (2)(d) or (e) | |
above in relation to any matter. | 20 |
(5) The Secretary of State shall— | |
(a) lay a copy of each annual report before each House of | |
Parliament; and | |
(b) arrange for the report to be published in such manner as he | |
considers appropriate. | 25 |
(6) The Authority may also prepare other reports with respect to any | |
matter falling within the scope of its functions and may arrange for any | |
such report to be published in such manner as it considers appropriate. | |
(7) The Authority shall send a copy of each annual or other report under | |
this section to the Assembly, the Council and the Chief Inspector of | 30 |
Drinking Water. | |
(8) In making or preparing any report under this section the Authority | |
shall have regard to the need for excluding, so far as that is practicable, | |
any matter which relates to the affairs of a particular individual or body | |
of persons (corporate or unincorporate), where publication of that | 35 |
matter would or might, in the opinion of the Authority, seriously and | |
prejudicially affect the interests of that individual or body.” | |
(2) Sections 193 and 194 of the WIA (which make provision about annual and | |
other reports by the Director General of Water Services and customer service | |
committees) shall cease to have effect. | 40 |
Objectives of regulation of water industry | |
39 Objectives and duties under WIA | |
(1) Section 2 of the WIA (general duties with respect to water industry) is | |
amended as follows. | |
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| |
|
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(2) In paragraph (a) of subsection (1), after “relevant undertakers” there is inserted | |
“and of licensed water suppliers”. | |
(3) For subsection (2) there is substituted— | |
“(2A) The Secretary of State or, as the case may be, the Authority shall | |
exercise and perform the powers and duties mentioned in subsection | 5 |
(1) above in the manner which he or it considers is best calculated— | |
(a) to further the consumer objective; | |
(b) to secure that the functions of a water undertaker and of a | |
sewerage undertaker are properly carried out as respects every | |
area of England and Wales; | 10 |
(c) to secure that companies holding appointments under Chapter | |
1 of Part 2 of this Act as relevant undertakers are able (in | |
particular, by securing reasonable returns on their capital) to | |
finance the proper carrying out of those functions; and | |
(d) to secure that the activities authorised by the licence of a | 15 |
licensed water supplier and any statutory functions imposed on | |
it in consequence of the licence are properly carried out. | |
(2B) The consumer objective mentioned in subsection (2A)(a) above is to | |
protect the interests of consumers, wherever appropriate by promoting | |
effective competition between persons engaged in, or in commercial | 20 |
activities connected with, the provision of water and sewerage services. | |
(2C) For the purposes of subsection (2A)(a) above the Secretary of State or, | |
as the case may be, the Authority shall have regard to the interests of— | |
(a) individuals who are disabled or chronically sick; | |
(b) individuals of pensionable age; | 25 |
(c) individuals with low incomes; | |
(d) individuals residing in rural areas; and | |
(e) customers, of companies holding an appointment under | |
Chapter 1 of Part 2 of this Act, whose premises are not eligible | |
to be supplied by a licensed water supplier, | 30 |
but that is not to be taken as implying that regard may not be had to the | |
interests of other descriptions of consumer. | |
(2D) For the purposes of subsection (2C) above, premises are not eligible to | |
be supplied by a licensed water supplier if— | |
(a) they are household premises (as defined in section 17C below); | 35 |
or | |
(b) the total quantity of water estimated to be supplied to the | |
premises annually for the purposes of subsection (2) of section | |
17D below is less than the quantity specified in that subsection. | |
(2E) The Secretary of State and the Authority may, in exercising any of the | 40 |
powers and performing any of the duties mentioned in subsection (1) | |
above, have regard to— | |
(a) any interests of consumers in relation to electricity conveyed by | |
distribution systems (within the meaning of the Electricity Act | |
1989); | 45 |
(b) any interests of consumers in relation to gas conveyed through | |
pipes (within the meaning of the Gas Act 1986); | |
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|
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| |
(c) any interests of consumers in relation to communications | |
services and electronic communications apparatus (within the | |
meaning of the Communications Act 2003), | |
which are affected by the exercise of that power or the performance of | |
that duty.” | 5 |
(4) For subsections (3) and (4) there is substituted— | |
“(3) Subject to subsection (2A) above, the Secretary of State or, as the case | |
may be, the Authority shall exercise and perform the powers and duties | |
mentioned in subsection (1) above in the manner which he or it | |
considers is best calculated— | 10 |
(a) to promote economy and efficiency on the part of companies | |
holding an appointment under Chapter 1 of Part 2 of this Act in | |
the carrying out of the functions of a relevant undertaker; | |
(b) to secure that no undue preference is shown, and that there is | |
no undue discrimination in the fixing by such companies of | 15 |
water and drainage charges; | |
(c) to secure that consumers are protected as respects benefits that | |
could be secured for them by the application in a particular | |
manner of any of the proceeds of any disposal (whenever made) | |
of any of such a company’s protected land or of an interest or | 20 |
right in or over any of that land; | |
(d) to ensure that consumers are also protected as respects any | |
activities of such a company which are not attributable to the | |
exercise of functions of a relevant undertaker, or as respects any | |
activities of any person appearing to the Secretary of State or (as | 25 |
the case may be) the Authority to be connected with the | |
company, and in particular by ensuring— | |
(i) that any transactions are carried out at arm’s length; | |
(ii) that the company, in relation to the exercise of its | |
functions as a relevant undertaker, maintains and | 30 |
presents accounts in a suitable form and manner; | |
(iii) that, if the person is a licensed water supplier, its licence | |
does not authorise it to carry on any activities in the area | |
of the company; | |
(e) to contribute to the achievement of sustainable development. | 35 |
(4) In exercising any of the powers or performing any of the duties | |
mentioned in subsection (1) above in accordance with the preceding | |
provisions of this section, the Secretary of State and the Authority shall | |
have regard to the principles of best regulatory practice (including the | |
principles under which regulatory activities should be transparent, | 40 |
accountable, proportionate, consistent and targeted only at cases in | |
which action is needed).” | |
(5) After subsection (5) there is inserted— | |
“(5A) In this section— | |
“consumers” includes both existing and future consumers; and | 45 |
“the interests of consumers” means the interests of consumers in | |
relation to— | |
(a) the supply of water by means of a water undertaker’s | |
supply system to premises either by water undertakers | |
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| |
|
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| |
or by licensed water suppliers acting in their capacity as | |
such; and | |
(b) the provision of sewerage services by sewerage | |
undertakers.” | |
(6) In subsection (6), for paragraphs (a) and (b) there is substituted— | 5 |
“(a) subject to subsection (6A) below, the reference in subsection (1) | |
above to the provisions of this Act relating to the regulation of | |
relevant undertakers and of licensed water suppliers is a | |
reference to the provisions contained in Part 2 of this Act (except | |
section 27A, and Schedule 3A), or in any of sections 37A to 38, | 10 |
39, 39B, 39C, 66B, 66D, 66F to 66H, 66K, 66L, 95, 96, 153, 181, 182, | |
192A, 192B, 195, 195A and 201 to 203 below; | |
(b) the reference in that subsection to the provisions relating to the | |
financial conditions of requisitions is a reference to the | |
provisions contained in sections 42, 43, 43A, 48, 51C, 99, 100 and | 15 |
100A below; and”. | |
(7) In subsection (6A), for “Subsections (2) to (4) above” there is substituted | |
“Subsections (2A) to (4) above and section 2A below”. | |
(8) In subsection (6B), for “subsections (2) to (4) above” there is substituted | |
“subsections (2A) to (4) above and section 2A below”. | 20 |
(9) After subsection (6B) there is added— | |
“(7) The duties imposed by subsections (2A) to (4) above and section 2A | |
below do not affect the obligation of the Authority or, as the case may | |
be, the Secretary of State to perform or comply with any other duty or | |
requirement (whether arising under this Act or another enactment, by | 25 |
virtue of any Community obligation or otherwise).” | |
40 Guidance to Authority on social and environmental matters | |
After section 2 of the WIA there is inserted— | |
“2A Guidance on social and environmental matters | |
(1) Guidance may be issued from time to time— | 30 |
(a) by the Assembly, with respect to appointment areas which are | |
wholly or mainly in Wales; and | |
(b) by the Secretary of State, with respect to other appointment | |
areas, | |
about the making by the Authority of a contribution towards the | 35 |
attainment of any social or environmental policies set out or referred to | |
in the guidance. | |
(2) In formulating guidance, the Secretary of State and the Assembly shall, | |
where practicable, have regard to the costs and benefits which may be | |
expected to result from the guidance. | 40 |
(3) The Authority shall, in exercising and performing the powers and | |
duties mentioned in section 2(1) above (subject to section 2(6) above), | |
have regard to any guidance issued under this section. | |
(4) Before issuing guidance under this section the Secretary of State and the | |
Assembly shall consult— | 45 |
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|
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| |
(a) the Authority; | |
(b) the Council; | |
(c) in the case of the Secretary of State, the Assembly and vice versa; | |
(d) relevant undertakers; | |
(e) licensed water suppliers; and | 5 |
(f) such other persons as the Secretary of State or the Assembly | |
considers it appropriate to consult in relation to the guidance. | |
(5) A draft of any guidance proposed to be issued by the Secretary of State | |
under this section shall be laid before each House of Parliament. | |
(6) Guidance shall not be issued by the Secretary of State under this section | 10 |
until after the period of forty days beginning with— | |
(a) the day on which the draft is laid before each House of | |
Parliament; or | |
(b) if the draft is laid before the House of Lords on one day and the | |
House of Commons on another, the later of those two days. | 15 |
(7) If, before the end of that period, either House resolves that the guidance | |
should not be issued, the Secretary of State must not issue it. | |
(8) In reckoning any period of forty days for the purposes of subsection (6) | |
or (7) above, no account shall be taken of any time during which— | |
(a) Parliament is dissolved or prorogued; or | 20 |
(b) both Houses are adjourned for more than four days. | |
(9) The Secretary of State and the Assembly shall arrange for any guidance | |
issued by him or it under this section to be published in such manner | |
as he or it considers appropriate. | |
(10) In this section, an “appointment area” is an area for which an | 25 |
appointment is held under Chapter 1 of Part 2 of this Act.” | |
41 Standards of performance in relation to water supply | |
(1) Section 39 of the WIA (procedure for making regulations relating to | |
performance standards in connection with water supply) is amended as | |
follows. | 30 |
(2) Before subsection (1) there is inserted— | |
“(A1) The Secretary of State may make regulations under section 38 above— | |
(a) on an application by the Authority, in accordance with | |
subsections (1) to (3) below; or | |
(b) otherwise than on such an application, in accordance with | 35 |
subsections (4) to (8) below.” | |
(3) In subsection (1)— | |
(a) for the words preceding paragraph (a), and paragraph (a), there is | |
substituted “Where the Authority has made to the Secretary of State a | |
written application complying with subsection (2) below, the Secretary | 40 |
of State may make regulations under section 38 above if—”, | |
(b) in paragraph (b), the “and” at the end of sub-paragraph (i) is omitted, | |
and after sub-paragraph (ii) there is inserted— | |
“(iii) on the Council; and | |
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|
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| |
(iv) on such other persons or bodies as the Secretary | |
of State may consider appropriate;”, | |
(c) in paragraph (c)(ii), for “(b)(ii)” there is substituted “(b)”. | |
(4) In subsection (2)— | |
(a) in paragraph (a), for “draft provisions proposed by the Director for | 5 |
inclusion in” there is substituted “the Authority’s proposals for the | |
making of”, | |
(b) in paragraph (b), for “those provisions” there is substituted “the | |
regulations”. | |
(5) In subsection (3)— | 10 |
(a) for “under section 38 above” there is substituted “on an application by | |
the Authority under this section”, | |
(b) in paragraph (a), for “the provisions proposed by the Director in his | |
application or those provisions” there is substituted “those which in the | |
opinion of the Secretary of State give effect to the proposals set out in | 15 |
the Authority’s application or to those proposals”, | |
(c) in paragraph (b), the “and” at the end of sub-paragraph (i) is omitted, | |
and after sub-paragraph (ii) there is inserted “and | |
(iii) to any person or body on whom a copy of the | |
Authority’s application was served under | 20 |
subsection (1)(b) above.” | |
(6) After subsection (3) there is added— | |
“(4) Where no such application as is mentioned in subsection (1) above has | |
been made, the Secretary of State may make regulations under section | |
38 above only if he considers— | 25 |
(a) that the regulations will contribute towards the attainment of | |
policies relating to public health or the environment; or | |
(b) (if he does not consider that they will so contribute) that there | |
are exceptional reasons why it is otherwise in the public interest | |
that the regulations should be made. | 30 |
(5) Before making regulations under section 38 above by virtue of | |
subsection (4) above, the Secretary of State shall— | |
(a) give notice of his proposals; | |
(b) consider the results of the research carried out in accordance | |
with subsection (7) below; and | 35 |
(c) consider every representation or objection with respect to the | |
proposals which has been duly made and not withdrawn. | |
(6) A notice under subsection (5)(a) above must— | |
(a) summarise the Secretary of State’s reasons for his proposals; | |
(b) specify the water undertaker or undertakers in relation to which | 40 |
it is proposed the regulations should apply; and | |
(c) specify the period within which objections or representations | |
with respect to the proposals may be made. | |
(7) Before giving notice under subsection (5)(a) above the Secretary of State | |
shall arrange for such research as he considers appropriate with a view | 45 |
to discovering the views of a representative sample of persons likely to | |
be affected. | |
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(8) A notice under subsection (5)(a) above shall be given by serving a copy | |
on— | |
(a) the Authority; | |
(b) the Council; | |
(c) every water undertaker to which the regulations will apply; | 5 |
(d) persons or bodies appearing to the Secretary of State to be | |
representative of persons likely to be affected by the | |
regulations; and | |
(e) such other persons or bodies as the Secretary of State may | |
consider appropriate.” | 10 |
42 Standards of performance in relation to sewerage services | |
(1) Section 96 of the WIA (procedure for making regulations relating to | |
performance standards in connection with sewerage services) is amended as | |
follows. | |
(2) Before subsection (1) there is inserted— | 15 |
“(A1) The Secretary of State may make regulations under section 95 above— | |
(a) on an application by the Authority, in accordance with | |
subsections (1) to (3) below; or | |
(b) otherwise than on such an application, in accordance with | |
subsections (4) to (8) below.” | 20 |
(3) In subsection (1)— | |
(a) for the words preceding paragraph (a), and paragraph (a), there is | |
substituted “Where the Authority has made to the Secretary of State a | |
written application complying with subsection (2) below, the Secretary | |
of State may make regulations under section 95 above if—”, | 25 |
(b) in paragraph (b), the “and” at the end of sub-paragraph (i) is omitted, | |
and after sub-paragraph (ii) there is inserted— | |
“(iii) on the Council; and | |
(iv) on such other persons or bodies as the Secretary | |
of State may consider appropriate;”, | 30 |
(c) in paragraph (c)(ii), for “(b)(ii)” there is substituted “(b)”. | |
(4) In subsection (2)— | |
(a) in paragraph (a), for “draft provisions proposed by the Director for | |
inclusion in” there is substituted “the Authority’s proposals for the | |
making of”, | 35 |
(b) in paragraph (b), for “those provisions” there is substituted “the | |
regulations”. | |
(5) In subsection (3)— | |
(a) for “under section 95 above” there is substituted “on an application by | |
the Authority under this section”, | 40 |
(b) in paragraph (a), for “the provisions proposed by the Director in his | |
application or those provisions” there is substituted “those which in the | |
opinion of the Secretary of State give effect to the proposals set out in | |
the Authority’s application or to those proposals”, | |
(c) in paragraph (b), the “and” at the end of sub-paragraph (i) is omitted, | 45 |
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