Water Industry (Financial Assistance) Bill (HC Bill 299)

A

BILL

TO

Make provision for the giving of financial assistance for the purpose of
securing the reduction of charges for the supply of water and the provision of
sewerage services and in connection with the construction of, and the carrying
out of works in respect of, water and sewerage infrastructure.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

1 Financial assistance to reduce charges

In Part 5 of the Water Industry Act 1991, in Chapter 2 (financial assistance for
undertakers and licensed water suppliers), after section 154 there is inserted—

154A Financial assistance to reduce charges

(1) 5If the Secretary of State considers it desirable to do so, the Secretary of State
may give financial assistance for the purpose in subsection (2) to

(a) an English undertaker, or

(b) a licensed water supplier that supplies water to premises in accordance
with its retail authorisation using the supply system of an English
10undertaker.

(2) The purpose is that of securing the reduction of charges payable by
customers in an English undertaker’s area for the supply of water or the
provision of sewerage services.

(3) The power in subsection (1) may be exercised in relation to all
15customers in an English undertaker’s area or customers of a particular
description.

(4) Financial assistance under subsection (1) may be given in any form and
in particular may be given by way of—

(a) grant,

(b) 20loan, or

(c) guarantee.

Water Industry (Financial Assistance) BillPage 2

(5) Financial assistance under subsection (1) may be given on such terms
and conditions as the Secretary of State considers appropriate.

(6) Financial assistance under subsection (1) may be given in any manner
and in particular may be given—

(a) 5to an English undertaker by means of an arrangement made by
the Secretary of State with another English undertaker, or

(b) to a licensed water supplier by means of an arrangement made
by the Secretary of State with an English undertaker that is a
water undertaker.

(7) 10A reference in this section to a customer in an English undertaker’s area
is a reference to—

(a) a person liable to pay charges to the undertaker in respect of the
supply of water or the provision of sewerage services, other
than a licensed water supplier, or

(b) 15a person whose premises are supplied with water by a licensed
water supplier in accordance with its retail authorisation using
the undertaker’s supply system.

(8) In this section a reference to the retail authorisation of a licensed water
supplier is to be construed in accordance with section 17A(2).

(9) 20In this section “English undertaker” means a water undertaker or
sewerage undertaker whose area is wholly or mainly in England.

2 Financial assistance for major works

In Chapter 2 of Part 5 of the Water Industry Act 1991, after section 154A
(inserted by section 1) there is inserted—

154B 25Financial assistance for major works

(1) If the Secretary of State considers it desirable to do so, the Secretary of State
may give financial assistance in connection with

(a) the construction of water or sewerage infrastructure, or

(b) the carrying out of works in respect of existing water or sewerage
30infrastructure.

(2) Financial assistance may be given under subsection (1) only if
constructing the infrastructure in question or carrying out the works in
question, or doing a combination of those things, involves
exceptionally large or complex works.

(3) 35Financial assistance may be given under subsection (1) only if the use
or intended use of the infrastructure includes use by an English
undertaker in carrying out a duty under section 37 or 94.

(4) The power under subsection (1) includes power to give financial
assistance or further financial assistance for the purposes described in
40subsection (1) after completion of the infrastructure or the works in
question.

(5) Financial assistance under subsection (1) may be given in any form and
in particular may be given by way of—

(a) grant,

(b) 45loan,

Water Industry (Financial Assistance) BillPage 3

(c) guarantee or indemnity,

(d) the provision of insurance, or

(e) the acquisition of shares in or securities of a body corporate.

(6) Financial assistance under subsection (1) may be given on such terms
5and conditions as the Secretary of State considers appropriate.

(7) In this section—

  • “English undertaker” means a water undertaker or sewerage
    undertaker whose area is wholly or mainly in England;

  • “sewerage infrastructure” means infrastructure relating to the
    10provision of a system of sewers or the provision of means for
    emptying, or dealing effectually with the contents of, sewers;

  • “water infrastructure” means infrastructure relating to the
    provision of a system of water supply or the securing of
    supplies of water.

3 15Short title, commencement and extent

(1) This Act may be cited as the Water Industry (Financial Assistance) Act 2012.

(2) Sections 1 and 2 come into force at the end of the period of two months
beginning with the date on which this Act is passed.

(3) This section comes into force on the day on which this Act is passed.

(4) 20This Act extends to England and Wales only.