31 Bulk supplies
(1) After section 20B of the WRA (inserted by section 29 of this Act) there is
“20C Proposals for bulk supply arrangements
(1) In the circumstances mentioned in subsection (2) below, the Agency
may, in carrying out its functions under section 6(2) of the 1995 Act,
propose to a qualifying person (within the meaning of section 40 of the
Water Industry Act 1991) that he make an application under that
section for a bulk supply of water from a water undertaker.
(2) The circumstances referred to in subsection (1) above are that it appears
to the Agency that such a bulk supply is necessary in order to secure the
proper use of water resources.
(3) The Agency shall not make such a proposal without first consulting the
Water Services Regulation Authority.
(4) The Agency may include in its proposal the period for which, and
terms and conditions on which, the Agency considers it appropriate
that the bulk supply should be given.”
(2) In section 38 of the WRA (general consideration of applications), in subsection
(3), after paragraph (b) there is inserted—
“and may have regard to any failure on the part of the applicant to
make an application under section 40 of the Water Industry Act 1991
pursuant to a proposal made by the Agency under section 20C above.”.
32 Visiting forces
Section 223 of the WRA (exemption of visiting forces from restrictions on
abstraction etc) shall cease to have effect.
New regulatory arrangements, etc
Establishment, etc of new bodies
33 Water Services Regulation Authority
(1) After section 1 of the Water Industry Act 1991 (c. 56) (in this Act referred to as
the “WIA”) there is inserted—
“1A Water Services Regulation Authority
(1) There shall be a body corporate to be known as the Water Services
Regulation Authority (in this Act referred to as “the Authority”) for the
purpose of carrying out the functions conferred on or transferred to it
by this Act or under or by virtue of any other enactment.
(2) The functions of the Authority are performed on behalf of the Crown.
(3) Schedule 1A to this Act shall have effect with respect to the Authority.
(4) In Welsh the Authority may be known as “Awdurdod Rheoleiddio
(2) Schedule 1 (which inserts the new Schedule 1A into the WIA) is to have effect.
(3) The office of Director General of Water Services is abolished.
(4) Section 1 of, and Schedule 1 to, the WIA (which make provision in relation to
the Director General of Water Services) shall cease to have effect.
34 Consumer Council for Water
(1) After section 27 of the WIA there is inserted—
“The Consumer Council for Water
27A Establishment of the Council and committees
(1) There shall be a body corporate to be known as the Consumer Council
for Water (in this Act referred to as “the Council”) for the purpose of
carrying out the functions of the Council under this Act.
(2) In Welsh the Council may be known as “Cyngor Defnyddwyr Dˆwr”.
(3) The Council shall not be regarded as a servant or agent of the Crown or
as enjoying any status, immunity or privilege of the Crown.
(4) The Council shall establish such committees of the Council—
(a) as the Assembly may direct, for relevant undertakers whose
areas are wholly or mainly in Wales; and
(b) as the Secretary of State may direct, for other relevant
(5) A direction under subsection (4) above may provide for the allocation
of each relevant undertaker to a committee specified in the direction.
(6) The power to give a direction under subsection (4) above may not be
exercised after the end of the period of six months beginning with the
commencement of section 34 of the Water Act 2003.
(7) After the end of the period mentioned in subsection (6) above the
Council may (subject to paragraph 11 of Schedule 3A to this Act)—
(a) establish such committees for relevant undertakers as it
considers appropriate; or
(b) alter the allocation of a relevant undertaker to a committee
established under this section.
(8) The Council shall ensure that each relevant undertaker is allocated to a
committee established under this section.
(9) A committee established under this section is referred to in this Act as
a “regional committee”.
(10) The purposes of a regional committee shall be—
(a) the provision of advice and information to the Council on
consumer matters affecting the areas of the relevant
undertakers allocated to that committee;
(b) such other purposes as the Council may determine.
(11) The provisions of Schedule 3A to this Act (which makes further
provision about the Council and regional committees) shall have effect.
(12) In this Chapter—
“consumers” includes both existing and future consumers;
“the interests of consumers” means the interests of consumers in
(a) the supply of water by means of a water undertaker’s
supply system to premises either by water undertakers
or (unless the context otherwise requires) licensed water
suppliers acting in their capacity as such; and
(b) the provision of sewerage services by sewerage
“consumer matter” means any matter connected with the interests
27B Co-operation between Council and other authorities
(1) This section imposes duties on—
(a) the Authority and the Council;
(b) the Council and the Secretary of State; and
(c) the Council and the Assembly.
(2) It shall be the duty of the bodies mentioned in each paragraph of
subsection (1) above to make arrangements with a view to securing—
(a) co-operation and the exchange of information between them;
(b) the consistent treatment of matters which affect both of them.
(3) As soon as practicable after agreement is reached on any arrangements
required by this section, the parties shall prepare a memorandum
setting them out.
(4) Arrangements under this section shall be kept under review by the
(5) As soon as practicable after agreement is reached on any changes to
arrangements under this section, the parties shall revise their
(6) Parties to arrangements required by this section shall send a copy of
their memorandum, and any revised memorandum, to each other
person mentioned in subsection (1) above who is not a party to the
arrangements set out in the memorandum (or revised memorandum).
(7) The Secretary of State shall lay a copy of every memorandum or revised
memorandum under this section before each House of Parliament.”
(2) Schedule 2 (which inserts the new Schedule 3A into the WIA) is to have effect.
(3) The customer service committees established under section 28(1) of the WIA
(4) Section 28 of, and Schedule 4 to, the WIA shall cease to have effect.
35 Transfer to Authority and Council of functions, property etc
(1) The functions of the Director General of Water Services are transferred to the
Water Services Regulation Authority.
(2) Subject to any express amendment made by this Act, each reference to the
Director General of Water Services (or to him as the Director) in the WIA
(however the reference is expressed) is to have effect as a reference to the Water
Services Regulation Authority (or, as the case may be, the Authority), and
accordingly in the WIA “he”, “him” and cognate expressions, in relation to the
Director General of Water Services, are to have effect as “it” (or the appropriate
equivalent) in relation to the Water Services Regulation Authority.
(3) The Secretary of State may make one or more schemes (“transfer schemes”) for
the transfer of the property, rights and liabilities of the Director General of
Water Services to the Water Services Regulation Authority (referred to below
in this Part as “the Authority”) or to the Consumer Council for Water (referred
to below in this Part as “the Council”).
(4) A transfer scheme may provide for the transfer to the Council of rights and
liabilities relating to persons employed in the civil service of the state.
(5) On the day appointed by a transfer scheme, the property, rights and liabilities
which are the subject of the scheme shall, by virtue of this subsection, be
transferred in accordance with the provisions of the scheme.
(6) Schedule 3 is to have effect in relation to transfer schemes and transfers under
36 Conditions relating to costs of water regulation
(1) In this section “payment conditions” means conditions included in an
appointment under Chapter 1 of Part 2 of the WIA by virtue of section 11(1)(c)
of that Act.
(2) The payment conditions of such an appointment may (without prejudice to the
generality of section 11(1)(c)) require the payment by the company holding the
appointment of sums relating to any of the expenses mentioned in subsection
(3) Those expenses are—
(a) the expenses of the Council, and
(b) the expenses of the Authority, the Secretary of State or the Assembly in
relation to the establishment of the Council.
(4) The Authority may, in accordance with this section, modify any payment
conditions where it considers it necessary or expedient to do so in consequence
of, or of preparations for—
(a) the establishment of the Council, or
(b) the abolition of the customer service committees established under
section 28(1) of the WIA.
(5) Where the Authority modifies under subsection (4) any payment conditions of
an appointment it may make such incidental or consequential modifications as
it considers necessary or expedient of the other conditions included in the
(6) Before modifying under subsection (4) or (5) the conditions included in such an
appointment, the Authority shall consult the company holding the
(7) The powers of the Authority under subsections (4) and (5) may not be exercised
after the end of the period of two years beginning with the commencement of
(8) The Secretary of State may, after consulting the Assembly, give directions to
the Authority for the purpose of securing that sums relating to any of the
expenses mentioned in subsection (3) are included in the sums payable by
virtue of payment conditions; and the Authority shall comply with any such
(9) If this section comes into force before the coming fully into force of section
35(1), references in this section to the Authority are to be read as including
references to the Director General of Water Services.
37 Forward work programmes and annual reports
(1) Before section 193 of the WIA there is inserted—
“192A Forward work programmes
(1) The Authority and the Council shall, before each financial year, each
publish a document (the “forward work programme”) containing a
general description of the projects, other than those comprising routine
activities in the exercise of its functions, which it plans to undertake
during the year.
(2) That description must include the objectives of each project.
(3) The forward work programme for any year shall also include an
estimate of the overall expenditure which the Authority or the Council
expects to incur during the year in the exercise of its functions.
(4) Before publishing the forward work programme for any year, the
Authority or the Council shall give notice—
(a) containing a draft of the forward work programme; and
(b) specifying the time within which representations or objections
to the proposals contained in it may be made,
and shall consider any representations or objections which are duly
made and not withdrawn.
(5) The notice under subsection (4) above must be published by the
Authority or the Council in such manner as it considers appropriate for
the purpose of bringing the matters contained in it to the attention of
persons likely to be affected by them.
(6) The Authority must send a copy of any notice given by it under
subsection (4) above to the Council, the Secretary of State and the
(7) The Council must send a copy of any notice given by it under
subsection (4) above to the Authority, the Secretary of State and the