to him a sum by way of compensation of such amount as may be
determined by the appropriate authority.
14 In paragraphs 11 to 13 above the “appropriate authority” means—
(a) the Assembly, in relation to committees established (or
proposed to be established) for relevant undertakers
whose areas are wholly or mainly in Wales, to sub-
committees of those committees, and to any relevant
undertaker whose area is wholly or mainly in Wales;
(b) the Secretary of State, in relation to committees established
(or proposed to be established) for other relevant
undertakers, to sub-committees of those committees, and
to any other relevant undertaker.
15 (1) The Council may establish committees other than regional
committees and any such committee may establish sub-
(2) The members of any such committee may include persons who are
not members of the Council (and the members of a sub-committee
may include persons who are not members of the relevant
committee or the Council).
(3) The Council may pay to the chairman and other members of any
such committee, or of a sub-committee, such remuneration, and
such travelling and other allowances, as the Secretary of State may
16 (1) If the Secretary of State so determines in the case of any holder of
the office of chairman or other member of any such committee, or
of any sub-committee of such a committee, the Council shall pay—
(a) such pension, allowance or gratuity to or in respect of him;
(b) such contributions or payments towards provision for
such a pension, allowance or gratuity,
as the Secretary of State may determine.
(2) If, when any person ceases to hold office as chairman or other
member of any such committee, or of any sub-committee of such
a committee, the Secretary of State determines that there are
special circumstances which make it right that he should receive
compensation, the Council shall pay to him a sum by way of
compensation of such amount as may be determined by the
Secretary of State.
Performance of functions of the Council
17 Anything authorised or required to be done by the Council may be
done by any member or employee of the Council who, or any
regional or other committee of the Council which, is authorised for
the purpose by the Council (whether generally or specially).
18 The validity of anything done by the Council is not affected by a
vacancy among its members or by a defect in the appointment of
19 (1) The Council shall have power to do anything which is calculated
to facilitate, or is incidental or conducive to, the performance of
any of its functions.
(2) That power includes, among other things, power to enter into
agreements and to acquire and dispose of property.
(3) The Council may make charges for facilities or services provided
by it at the request of any person.
First financial year of the Council
20 (1) If the period beginning with the day on which the Council is
established and ending with the next 31st March is six months or
more, the first financial year of the Council is that period.
(2) If the period mentioned in sub-paragraph (1) above is less than six
months, the first financial year of the Council is the period
beginning with the day on which the body is established and
ending with 31st March in the following year.
Compensation for members of customer service committees
21 The Authority may pay to any person who immediately before the
abolition by the Water Act 2003 of a customer service committee
established under section 28(1) of this Act is the chairman of that
body such sums by way of compensation for loss of office, or loss
or diminution of pension rights, as the Secretary of State may
Further provisions about transfers of functions, property etc
1 In this Schedule—
(a) a transfer of functions under section 35 to the Authority; or
(b) a transfer of property, rights and liabilities to the Authority or
to the Council under section 35; and
“transfer scheme” means a transfer scheme under section 35.
Contents of transfer schemes
2 (1) The property, rights and liabilities which may be transferred by a transfer
scheme include property, rights and liabilities that would not otherwise be
capable of being transferred or assigned.
(2) The transfers authorised by sub-paragraph (1) include transfers which are to
take effect as if there were no such contravention, liability or interference
with any interest or right as there would otherwise be by reason of any
provision having effect (whether under any enactment or agreement or
otherwise) in relation to the terms on which the transferor is entitled to the
property or right, or subject to the liability, in question.
3 A transfer scheme may define the property, rights and liabilities to be
transferred by specifying them or describing them or by referring to all (or
all except anything specified or described) of the property, rights and
liabilities comprised in a specified part of the undertaking of the transferor
(or partly in one way and partly in the other).
4 A transfer scheme may include such supplementary, incidental, transitional
and consequential provision as the Secretary of State considers appropriate.
Modification of transfer scheme after appointed day
5 (1) If, after the day appointed by a transfer scheme, the transferor and transferee
so agree in writing, the scheme shall for all purposes be deemed to have
come into force on that day with such modifications as may be agreed.
(2) An agreement under this paragraph may, in connection with giving effect to
modifications to the scheme, include incidental, supplemental,
consequential and transitional provision.
(3) In this paragraph, “modifications” includes additions, alterations and
Effect of transfers
6 (1) Anything done by the transferor for the purpose of or in connection with
anything transferred which is in effect immediately before it is transferred
shall be treated as if done by the transferee.
(2) A transfer does not affect the validity of anything done by or in relation to
the transferor before the transfer takes effect.
7 There may be continued by or in relation to the transferee anything
(including legal proceedings) relating to anything transferred which is in the
process of being done by or in relation to the transferor immediately before
it is transferred.
8 The transferee shall be substituted for the transferor in any document
relating to anything transferred.
Continuity of employment, etc of transferred employees
9 Where a person employed in the civil service of the state becomes an
employee of the Council under a transfer scheme, his period of employment
in that service counts as a period of employment with the Council for the
purposes of the Employment Rights Act 1996 (c. 18) (and the change of
employer does not break the continuity of the period of employment for
Licensing of water suppliers
1 The WIA is amended as follows.
2 After Chapter 1 of Part 2 of the WIA there is inserted—
Licensing of water suppliers
Granting of licences
17A Licensing of water suppliers
(1) Subject to the following provisions of this Chapter—
(a) the Secretary of State; or
(b) with the consent of or in accordance with a general
authorisation given by the Secretary of State (after consulting
the Assembly), the Authority,
may grant to a company a licence (a “water supply licence”) giving it
the retail authorisation referred to in subsection (2) below, or both
that and the supplementary authorisation referred to in subsection
(2) The retail authorisation is an authorisation to the company to use a
water undertaker’s supply system for the purpose of supplying
water to the premises of customers of the company (subject to
subsection (3) below) in accordance with Chapter 2A of Part 3 of this
(3) The following requirements must be satisfied in relation to each of
the premises supplied by the company—
(a) the requirement that the premises are not household
premises (as defined in section 17C below);
(b) the threshold requirement (construed in accordance with
section 17D below); and
(c) the requirement that the premises are not being supplied
with water by another company pursuant to a water supply
and those requirements shall be enforceable under section 18 below
by the Authority.
(4) A water supply licence which gives a company only the retail
authorisation is referred to in this Chapter as a “retail licence”.
(5) The supplementary authorisation is an authorisation to the company
to introduce water into a water undertaker’s supply system, by
means of which any particular supply of water in accordance with
the retail authorisation is to take place, in connection with that
supply and in accordance with Chapter 2A of Part 3 of this Act.
(6) The supplementary authorisation does not authorise the company to
introduce water into that supply system if the water has been
supplied by a company pursuant to a water supply licence.
(7) A water supply licence which gives a company also the
supplementary authorisation is referred to in this Chapter as a
(8) Before granting a combined licence—
(a) the Secretary of State shall consult the Assembly; and
(b) the Authority shall consult the Secretary of State and the
(9) A water supply licence shall not be granted to a company unless—
(a) it is a limited company; and
(b) it is not a relevant undertaker.
(10) The Authority may, with the approval of the Secretary of State, issue
guidance as to the factors which are, or are not, to be taken into
account in determining the extent of any premises for the purposes
of subsection (3) above.
(11) Before giving his approval to any guidance issued under subsection
(10) above, the Secretary of State shall consult the Assembly.
17B Section 17A: supplementary
(1) The Authority shall publish guidance issued under section 17A(10)
above in such manner as the Authority considers appropriate for the
purpose of bringing it to the attention of persons likely to be affected
(2) The Authority may, with the approval of the Secretary of State, revise
the guidance so issued.
(3) Before giving his approval to guidance revised under subsection (2)
above, the Secretary of State shall consult the Assembly.
(4) Subsection (1) above applies to guidance revised under subsection
(2) above as it applies to guidance issued under section 17A(10).
(5) In this Chapter, references to the supply system of a water
undertaker are to the system comprising the following—
(a) any water mains and other pipes which it is the water
undertaker’s duty to develop and maintain by virtue of
section 37 below and which are used for the purpose of
conveying water from the undertaker’s treatment works to
the premises of customers; and
(b) any water mains and other pipes which—
(i) are used by the undertaker for the purpose of
conveying non-domestic water from any of its
sources to the premises of customers; and
(ii) are not connected to any water mains or pipes falling
within paragraph (a) above or to any water mains or
other pipes connected to the treatment works
mentioned in that paragraph (whether directly or
and in sub-paragraph (i) above the reference to non-domestic
water is to water supplied other than for domestic or food
(6) In subsection (5)(a) above, the reference to treatment works is a
reference to the works designated from time to time by the Secretary
of State as treatment works for the purposes of this subsection.
(7) Before designating any works for the purposes of subsection (6)
above, the Secretary of State shall consult the Assembly.
(8) A list of any works designated for the purposes of subsection (6)
above shall be published from time to time by the Secretary of State
in such manner as he considers appropriate for the purpose of
bringing the designations to the attention of persons likely to be
affected by them.
(9) References in this Act to a licensed water supplier are references to a
company which is the holder for the time being of a water supply
17C Meaning of household premises
(1) For the purposes of section 17A(3)(a) above, “household premises”
means premises in which, or in any part of which, a person has his
(2) The fact that a person has his home in, or in part of, any premises
does not mean that the premises are household premises unless the
principal use of the premises is as a home.
(3) The Secretary of State may by regulations make provision as to—
(a) the circumstances in which a person is or is not to be treated
as having his home in, or in part of, any premises for the
purposes of this section; and
(b) the factors which are, or are not, to be taken into account in
determining the principal use of any premises for those
(4) The power to make regulations under subsection (3) above is
exercisable by the Assembly (and not by the Secretary of State) in
relation to premises supplied with water using the supply system of
a water undertaker whose area is wholly or mainly in Wales.
17D The threshold requirement
(1) This section applies for the purpose of construing the reference to the
threshold requirement in section 17A(3)(b) above in relation to the
supply of water to any premises.
(2) The requirement is that, at the time when the licensed water supplier
first enters into an undertaking with a customer to give the supply,
the total quantity of water estimated to be supplied to the premises
annually pursuant to the undertaking is not less than 50 megalitres.
(3) Any estimate of the quantity of water to be supplied to any premises
for the purposes of subsection (2) above shall be made in accordance
with guidance issued by the Authority with the approval of the
Secretary of State.
(4) Any guidance issued under subsection (3) above may, in
(i) the factors to be, and not to be, taken into account;
(ii) the assumptions to be made; and
(iii) the method of calculation to be employed,
in making estimates; and
(b) make provision as to the commencement of the annual
periods by reference to which estimates are to be made.
(5) Before giving his approval to any guidance issued under that
subsection, the Secretary of State shall consult the Assembly.
(6) Subsections (1) to (4) of section 17B above apply to guidance issued
under subsection (3) above as they apply to guidance issued under
section 17A(10) above.
(7) The Secretary of State may make provision by regulations as to the
circumstances in which a licensed water supplier is not, for the
purposes of subsection (2) above, to be treated as entering into an
undertaking with a new customer to give a supply of water to any
premises (subject to subsection (12) below).
(8) The Secretary of State may by regulations amend subsection (2)
above by substituting, for the quantity of water for the time being
specified there, a different quantity of water (subject to subsection
(9) Regulations under subsection (8) above—
(a) shall include provision for the amendment made by the
regulations not to apply in relation to any undertaking
entered into before the date on which the regulations come
into force; and
(b) may include provision for that amendment not to apply in
relation to any undertaking which is proposed, but not
entered into, before that date.
(10) A statutory instrument containing regulations under subsection (8)
above shall not be made unless a draft of the instrument has been
laid before, and approved by a resolution of, each House of
(11) Before making regulations under subsection (8) above, the Secretary
of State shall consult—
(a) the Authority; and
(b) such other persons (if any) as the Secretary of State thinks it
appropriate to consult.
(12) The powers to make regulations under subsections (7) and (8) above
are exercisable by the Assembly (and not by the Secretary of State) in