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(3B) Subsections (4) and (5) of section 14, and sections 14A and 14B, below | |
apply to references to the Competition Commission under this section | |
as they apply to references under section 14. | |
(3C) A report of the Competition Commission on a reference under this | |
section— | 5 |
(a) shall be made to the Authority; and | |
(b) shall include definite conclusions on the questions or other | |
matters comprised in the reference, together with such an | |
account of their reasons for those conclusions as, in the opinion | |
of the Competition Commission, is expedient for facilitating a | 10 |
proper understanding of those questions or other matters and | |
of their conclusions, | |
and subsections (5) and (6) of section 15 below apply to such a report as | |
they apply to a report on a reference under section 14.” | |
(3) Subsections (3)(b)(i), (4) and (5) shall cease to have effect. | 15 |
55 Conditions of appointments under the WIA | |
(1) The WIA is amended as follows. | |
(2) In section 14(5) (modification references to the Competition Commission)— | |
(a) after “this section” there is inserted “or in carrying out functions under | |
section 16A below”, | 20 |
(b) after “the investigation” there is inserted “or the carrying out of those | |
functions”, and | |
(c) after “such investigation” there is inserted “or such functions”. | |
(3) In section 16 (modification of conditions of appointment following report of | |
Competition Commission), after subsection (4) there is inserted— | 25 |
“(4A) After considering any representations or objections made in response | |
to proposals set out in a notice under subsection (3) above, the | |
Authority shall give notice to the Competition Commission— | |
(a) setting out the modifications it proposes to make to remedy or | |
prevent the adverse effects specified in the report; and | 30 |
(b) stating the reasons for making the modifications. | |
(4B) The Authority shall include with the notice under subsection (4A) | |
above a copy of any representations or objections received in relation to | |
the notice under subsection (3) above. | |
(4C) If the period of four weeks from the date on which the notice under | 35 |
subsection (4A) above is given elapses without a direction under | |
section 16A(1)(a) below having been given to it, the Authority shall— | |
(a) make the modifications set out in the notice; or | |
(b) if a direction under section 16A(1)(b) below has been given, | |
make the modifications which are not specified in the | 40 |
direction.” | |
(4) After section 16 there is inserted— | |
“16A Commission’s power of veto following report | |
(1) The Competition Commission (in this section referred to as “the | |
Commission”) may, within the period of four weeks after the date on | 45 |
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which it is given a notice under section 16(4A) above, direct the | |
Authority— | |
(a) not to make the modifications set out in that notice; or | |
(b) not to make such of the modifications as may be specified in the | |
direction; | 5 |
and the Authority shall comply with any such direction. | |
(2) The Secretary of State may, within the period of four weeks after the | |
date on which the Commission is given a notice under section 16(4A) | |
above and on the application of the Commission, direct that the period | |
for giving a direction under subsection (1) above (and, accordingly, the | 10 |
period mentioned in section 16(4C) above) shall be extended by | |
fourteen days. | |
(3) The power to give a direction under subsection (1) above may only be | |
exercised in respect of such of the modifications set out in the notice | |
under section 16(4A)(a) above as appear to the Commission not to be | 15 |
the modifications which are requisite for the purpose of remedying or | |
preventing all or any of the adverse effects specified in the report as | |
effects which could be remedied or prevented by modifications. | |
(4) If the Commission gives a direction under subsection (1) above, it— | |
(a) shall give notice setting out the modifications proposed by the | 20 |
Authority, the terms of the direction and the reasons for giving | |
it; and | |
(b) shall itself make such modifications as appear to it to be | |
requisite for the purpose of remedying or preventing— | |
(i) if the direction was given under subsection (1)(a) above, | 25 |
the adverse effects specified in the report as effects | |
which could be remedied or prevented by | |
modifications; | |
(ii) if the direction was given under subsection (1)(b) above, | |
such of those adverse effects as are not remedied or | 30 |
prevented by the modifications made by the Authority | |
under section 16(4C)(b) above. | |
(5) In exercising its power under subsection (4)(b) above, the Commission | |
shall have regard to the matters to which the Authority is required to | |
have regard when determining the conditions of a company’s | 35 |
appointment. | |
(6) Before making modifications under subsection (4)(b) above the | |
Commission shall give notice— | |
(a) stating that it proposes to make the modifications and setting | |
them out; | 40 |
(b) stating the reason why it proposes to make them; | |
(c) specifying the period (not being less than twenty-eight days | |
from the date of publication of the notice) within which | |
representations or objections with respect to the proposed | |
modifications may be made, | 45 |
and shall consider any representations or objections which are duly | |
made and not withdrawn. | |
(7) A notice under subsection (4)(a) or (6) above shall be given— | |
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(a) by publishing the notice in such manner as the Commission | |
considers appropriate for the purpose of bringing it to the | |
attention of persons likely to be affected by the making of the | |
modifications; and | |
(b) by serving a copy on the Authority and the company whose | 5 |
conditions of appointment it is proposed should be modified. | |
(8) The Commission may not make any modification under this section | |
which the Authority could not make under section 16 above. | |
(9) After making modifications under this section the Commission shall | |
publish a notice stating that the modifications have been made and | 10 |
setting them out, with the reasons for making them. | |
(10) This section does not apply to the modification of the conditions of a | |
company’s appointment following a report of the Commission made | |
before the commencement of section 55 of the Water Act 2003. | |
16B Commission’s power of veto following report: supplementary | 15 |
(1) For the purposes of the law relating to defamation, absolute privilege | |
attaches to any notice under subsection (4)(a), (6) or (9) of section 16A | |
above. | |
(2) In giving any notice under subsection (4)(a) or (6) of section 16A above, | |
or publishing any notice under subsection (9) of that section, the | 20 |
Commission must have regard to the following considerations before | |
disclosing any information. | |
(3) The first consideration is the need to exclude from disclosure (so far as | |
practicable) any information whose disclosure the Commission thinks | |
is contrary to the public interest. | 25 |
(4) The second consideration is the need to exclude from disclosure (so far | |
as practicable)— | |
(a) commercial information whose disclosure the Commission | |
thinks might significantly harm the legitimate business | |
interests of the undertaking to which it relates; or | 30 |
(b) information relating to the private affairs of an individual | |
whose disclosure the Commission thinks might significantly | |
harm the individual’s interests. | |
(5) The third consideration is the extent to which the disclosure of the | |
information mentioned in subsection (4)(a) or (b) above is necessary for | 35 |
the purposes of the notice. | |
(6) The following sections of Part 3 of the Enterprise Act 2002 shall apply, | |
with the modifications mentioned in subsections (7) and (8) below, for | |
the purposes of any investigation by the Commission for the purposes | |
of the exercise of its functions under section 16A above, as they apply | 40 |
for the purposes of any investigations on references under that Part— | |
(a) section 109 (attendance of witnesses and production of | |
documents etc.); | |
(b) section 110 (enforcement of powers under section 109: general); | |
(c) section 111 (penalties); | 45 |
(d) section 112 (penalties: main procedural requirements); | |
(e) section 113 (payments and interest by instalments); | |
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(f) section 114 (appeals in relation to penalties); | |
(g) section 115 (recovery of penalties); and | |
(h) section 116 (statement of policy). | |
(7) Section 110 shall, in its application by virtue of subsection (6) above, | |
have effect as if— | 5 |
(a) subsection (2) were omitted; | |
(b) in subsection (4), for the words “the publication of the report of | |
the Commission on the reference concerned” there were | |
substituted “the publication by the Commission of a notice | |
under section 16A(9) of the Water Industry Act 1991 in | 10 |
connection with the reference concerned or, if no direction has | |
been given by the Commission under section 16A(1) of that Act | |
in connection with the reference concerned and within the | |
period permitted for that purpose, the latest day on which it | |
was possible to give such a direction within the permitted | 15 |
period”; and | |
(c) in subsection (9) the words from “or section” to “section 65(3))” | |
were omitted. | |
(8) Section 111(5)(b) shall, in its application by virtue of subsection (6) | |
above, have effect as if for sub-paragraph (ii) there were substituted— | 20 |
“(ii) if earlier, the day on which a notice is published by the | |
Commission under section 16A(9) of the Water Industry | |
Act 1991 in connection with the reference concerned or, | |
if no direction has been given by the Commission under | |
section 16A(1) of that Act in connection with the | 25 |
reference concerned and within the period permitted for | |
that purpose, the latest day on which it was possible to | |
give such a direction within the permitted period.” | |
(9) Provisions of Part 3 of the Enterprise Act 2002 which have effect for the | |
purposes of sections 109 to 116 of that Act (including, in particular, | 30 |
provisions relating to offences and the making of orders) shall, for the | |
purposes of the application of those sections by virtue of subsection (6) | |
above, have effect in relation to those sections as applied by virtue of | |
that subsection. | |
(10) Accordingly, corresponding provisions of this Act shall not have effect | 35 |
in relation to those sections as applied by virtue of that subsection.” | |
Licensing of water suppliers | |
56 Licensing of other water suppliers | |
Schedule 4, which contains amendments to the WIA to provide for the | |
licensing of suppliers of water other than water undertakers, is to have effect. | 40 |
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Part 3 | |
Miscellaneous | |
The Drinking Water Inspectorate | |
57 The Chief Inspector of Drinking Water and the Drinking Water Inspectorate | |
(1) Section 86 of the WIA (which provides for the appointment of technical | 5 |
assessors for the enforcement of water quality) is amended as provided in | |
subsections (2) to (8). | |
(2) I n subsection (1), the words “as technical assessors” are omitted. | |
(3) After subsection (1) there is inserted— | |
“(1A) Subject to subsection (1B) below, the Secretary of State shall designate | 10 |
one such person as the Chief Inspector of Drinking Water. | |
(1B) If the function of the Secretary of State under subsection (1) above is | |
transferred to any extent to the Assembly— | |
(a) subject to paragraph (b) below, the Assembly may designate | |
one such person appointed by it as the Chief Inspector of | 15 |
Drinking Water for Wales; but | |
(b) if the person designated by the Assembly is the same as the | |
person designated by the Secretary of State as the Chief | |
Inspector of Drinking Water, he shall be known as such in both | |
capacities.” | 20 |
(4) In subsection (2), for “A person” there is substituted “An inspector”. | |
(5) In subsection (3)(a) and (b), for “a person” there is substituted “an inspector”. | |
(6) In subsection (4), for “person”, wherever it appears, there is substituted | |
“inspector”. | |
(7) In subsection (6), for the words from “on summary conviction” to the end there | 25 |
is substituted— | |
“(a) on summary conviction, to a fine not exceeding £20,000; | |
(b) on conviction on indictment, to a fine.” | |
(8) After subsection (6) there is added— | |
“(7) Proceedings by the Secretary of State for an offence under this section | 30 |
or in relation to the quality and sufficiency of water supplied using a | |
water undertaker’s supply system may be instituted and carried on in | |
the name of the Chief Inspector of Drinking Water. | |
(8) In this section “inspector” means the Chief Inspector of Drinking Water | |
or any other person appointed under subsection (1) above.” | 35 |
(9) In section 219 of the WIA (general interpretation), after subsection (9) there is | |
added— | |
“(10) If the Assembly designates a person as Chief Inspector of Drinking | |
Water for Wales under section 86(1B) above, references in this Act to | |
the Chief Inspector of Drinking Water, as respects anything to be done | 40 |
in relation to him, shall be taken as references to the person designated | |
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as the Chief Inspector of Drinking Water by the Secretary of State and | |
also the person designated by the Assembly as the Chief Inspector of | |
Drinking Water for Wales.” | |
(10) Subsection (7) does not have effect in relation to any offence committed before | |
the commencement of that subsection. | 5 |
Water fluoridation | |
58 Fluoridation of water supplies | |
(1) The WIA is amended as follows. | |
(2) For section 87 (fluoridation of water supplies at request of health authorities) | |
there is substituted— | 10 |
“87 Fluoridation of water supplies at request of relevant authorities | |
(1) If requested in writing to do so by a relevant authority, a water | |
undertaker shall enter into arrangements with the relevant authority to | |
increase the fluoride content of the water supplied by that undertaker | |
to premises within the area specified in the arrangements. | 15 |
(2) But a water undertaker shall not be required by subsection (1) above to | |
enter into any such arrangements until an indemnity with respect to the | |
arrangements has been given by virtue of section 90 below— | |
(a) to the water undertaker; and | |
(b) to any licensed water supplier which is entitled to one. | 20 |
(3) In this section and the following provisions of this Chapter— | |
(a) references to a relevant authority— | |
(i) in relation to areas in England, are to a Strategic Health | |
Authority established under section 8 of the National | |
Health Service Act 1977; | 25 |
(ii) in relation to areas in Wales, are to the Assembly; and | |
(b) references to water supplied by a water undertaker are to water | |
supplied (whether by a water undertaker or a licensed water | |
supplier) to premises using the supply system of that | |
undertaker. | 30 |
(4) The area specified in arrangements under this section may be— | |
(a) in relation to England, the whole or any part of the area of the | |
Strategic Health Authority in question; | |
(b) in relation to Wales, such area comprising the whole or any part | |
of Wales as the Assembly may determine. | 35 |
(5) The arrangements shall be on such terms as may be agreed between the | |
relevant authority and the water undertaker or, in the absence of | |
agreement, determined in accordance with section 87B below. | |
(6) Those terms shall include provision— | |
(a) requiring the relevant authority to meet the reasonable capital | 40 |
and operating costs incurred by the water undertaker in giving | |
effect to the arrangements; | |
(b) specifying circumstances in which the requirement to increase | |
the fluoride content may be temporarily suspended; and | |
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(c) for the variation of the arrangements at the request of the | |
relevant authority. | |
(7) The relevant authority shall consult the Authority in relation to the | |
terms to be included in any arrangements under this section (in | |
particular, terms which affect the operation of the water undertaker’s | 5 |
supply system). | |
(8) If two or more relevant authorities request a particular water | |
undertaker to enter into arrangements in respect of adjoining areas— | |
(a) the authorities shall co-operate with each other so as to secure | |
that the arrangements (taken together) are operable and | 10 |
efficient; and | |
(b) if suitable terms are not agreed for all the arrangements, a | |
combined reference may be made by the relevant authorities | |
under section 87B below to enable the terms of each set of | |
arrangements to be determined so that they are consistent. | 15 |
(9) If a relevant authority requests a water undertaker to vary | |
arrangements, the authority shall co-operate with any relevant | |
authority for an adjoining area which has entered into arrangements | |
with the same water undertaker so as to secure that following the | |
variation the arrangements (taken together) will be operable and | 20 |
efficient. | |
(10) If suitable terms are not agreed for a variation mentioned in subsection | |
(9), a combined reference may be made by the relevant authorities | |
under section 87B below to enable the terms of the variation to be | |
determined so that (following the variation) both sets of arrangements | 25 |
are consistent. | |
(11) Before carrying out the consultation required by subsection (1) of | |
section 89 below in relation to a step mentioned in paragraph (a), (b) or | |
(c) of subsection (2) of that section, a relevant authority shall consult the | |
water undertaker in question as to whether the arrangements which | 30 |
would result from taking that step would be operable and efficient (or, | |
where it is proposed to terminate the arrangements, as to whether it | |
would be reasonably practicable to do so). | |
87A Target concentration of fluoride | |
(1) Arrangements under section 87(1) above shall include provision for | 35 |
securing that, so far as reasonably practicable, the concentration of | |
fluoride in the water supplied to premises in the specified area is | |
maintained at the general target concentration of one milligram per | |
litre. | |
(2) But the arrangements may provide for the concentration in the | 40 |
specified area (or any part of it) to be lower than that if the relevant | |
authority considers that it is not reasonably practicable to achieve the | |
general target concentration in the specified area (or that part of it). | |
(3) Any such lower concentration must still be as high as is reasonably | |
practicable in the circumstances. | 45 |
(4) If, in relation to any area (“area A”), an order under section 88A(1) | |
below specifies a general target concentration lower than that for which | |
any arrangements effective there provide (or, by the previous operation | |
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