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Water Bill [HL]


Water Bill [HL]
Schedule 4 — Licensing of water suppliers

    149

 

                    (b)                   if a direction under section 17P(1)(b) below has been given,

make the modifications which are not specified in the

direction.

              (9)             The modification under subsection (1) above of part of a standard

condition of a particular licence in consequence of a reference under

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section 17K(1) above shall not prevent any other part of the condition

from continuing to be regarded as a standard condition for the

purposes of this Chapter.

              (10)            Where at any time it modifies under subsection (1) above the

standard conditions of retail licences or combined licences in

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consequence of a reference under section 17K(2) above, the

Authority shall—

                    (a)                   also make (as nearly as may be) the same modifications of

those conditions for the purposes of their incorporation in

licences of that description granted after that time; and

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                    (b)                   publish the modifications made for those purposes in such

manner as it considers appropriate.

       17P            Water supply licences: Commission’s power of veto following report

              (1)             The Commission may, within the period of four weeks after the date

on which it is given a notice under section 17O(6) above, direct the

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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;

                              and the Authority shall comply with any such direction.

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              (2)             The Secretary of State may—

                    (a)                   within the period of four weeks after the date on which the

Commission is given a notice under section 17O(6) above;

and

                    (b)                   on the application of the Commission,

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                              direct that the period for giving a direction under subsection (1)

above (and, accordingly, the period mentioned in section 17O(8)

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

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notice under section 17O(6)(a) above as appear to the Commission

not to be 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.

40

              (4)             If the Commission gives a direction under subsection (1) above, it

shall—

                    (a)                   give notice setting out the modifications proposed by the

Authority, the terms of the direction and the reasons for

giving it; and

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Water Bill [HL]
Schedule 4 — Licensing of water suppliers

    150

 

                    (b)                   make such modifications itself of the relevant conditions 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, the adverse effects specified in the report as

5

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 prevented by the modifications made by

10

the Authority under section 17O(8)(b) above.

              (5)             In exercising its power under subsection (4)(b) above the

Commission shall have regard to the matters as respects which

duties are imposed on the Authority by Part 1 of this Act.

              (6)             Before making modifications under subsection (4)(b) above the

15

Commission shall give notice—

                    (a)                   stating that it proposes to make the modifications and setting

them out;

                    (b)                   stating the reason why it proposes to make them;

                    (c)                   specifying the period (not being less than twenty-eight days

20

from the date of publication of the notice) within which

representations or objections with respect to the proposed

modifications may be made,

                              and shall consider any representations or objections which are duly

made and not withdrawn.

25

              (7)             A notice under subsection (4)(a) or (6) above shall be given—

                    (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;

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                    (b)                   by serving a copy of the notice on—

                           (i)                          the Authority;

                           (ii)                         the holder of the licence in question or, as the case

may be, the relevant licence holders;

                           (iii)                        the Secretary of State;

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                           (iv)                         the Assembly; and

                           (v)                          the Chief Inspector of Drinking Water.

              (8)             After making modifications under this section the Commission shall

publish a notice stating that the modifications have been made and

setting them out, with the reasons for making them.

40

              (9)             The modification under this section of part of a standard condition of

a particular licence in consequence of a reference under section

17K(1) above shall not prevent any other part of the condition from

continuing to be regarded as a standard condition for the purposes

of this Chapter.

45

              (10)            Where, in consequence of a reference under section 17K(2) above, the

Commission modifies under subsection (4)(b) above the standard

conditions of retail licences or combined licences, the Authority may

 

 

Water Bill [HL]
Schedule 4 — Licensing of water suppliers

    151

 

              (10)            make such incidental and consequential modifications as it considers

necessary or expedient of any conditions of licences of that

description.

              (11)            Where, in consequence of a reference under section 17K(2) above, the

Commission modifies under subsection (4)(b) above the standard

5

conditions of retail licences or combined licences, the Authority

shall—

                    (a)                   make (as nearly as may be) the same modifications of those

conditions for the purposes of their incorporation in licences

of that description granted after that time, and

10

                    (b)                   publish the modifications made for those purposes in such

manner as it considers appropriate.

       17Q            Section 17P: supplementary

              (1)             For the purposes of the law relating to defamation, absolute privilege

attaches to any notice under subsection (4)(a), (6) or (8) of section 17P

15

above.

              (2)             In giving any notice under subsection (4)(a) or (6) of section 17P

above, or publishing any notice under subsection (8) of that section,

the Commission must have regard to the following considerations

before disclosing any information.

20

              (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.

              (4)             The second consideration is the need to exclude from disclosure (so

far as practicable)—

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                    (a)                   commercial information whose disclosure the Commission

thinks might significantly harm the legitimate business

interests of the undertaking to which it relates; or

                    (b)                   information relating to the private affairs of an individual

whose disclosure the Commission thinks might significantly

30

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 the purposes of the notice.

              (6)             The following sections of Part 3 of the Enterprise Act 2002 shall

35

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 17P above,

as they apply for the purposes of any investigation on references

under that Part—

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                    (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);

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                    (d)                   section 112 (penalties: main procedural requirements);

 

 

Water Bill [HL]
Schedule 4 — Licensing of water suppliers

    152

 

                    (e)                   section 113 (payments and interest by instalments);

                    (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,

5

have effect as if—

                    (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

10

under section 17P(8) of the Water Industry Act 1991 in

connection with the reference concerned or, if no direction

has been given by the Commission under section 17P(1) of

that Act in connection with the reference concerned and

within the period permitted for that purpose, the latest day

15

on which it was possible to give such a direction within the

permitted 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),

20

have effect as if for sub-paragraph (ii) there were substituted—

                        “(ii)                           if earlier, the day on which a notice is published by the

Commission under section 17P(8) of the Water Industry

Act 1991 in connection with the reference concerned or,

if no direction is given by the Commission under section

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17P(1) of that Act in connection with the reference

concerned and within the period permitted for that

purpose, the latest day on which such a direction may be

given within the permitted period.”

              (9)             Provisions of Part 3 of the Enterprise Act 2002 which have effect for

30

the purposes of sections 109 to 116 of that Act (including, in

particular, 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.

35

              (10)            Accordingly, corresponding provisions of this Act shall not have

effect in relation to those sections as applied by virtue of that

subsection.

       17R            Water supply licences: modification by order under other enactments

              (1)             Where the Office of Fair Trading, the Commission or the Secretary of

40

State (the “relevant authority”) makes a relevant order, the order

may also provide for the modification of—

                    (a)                   the conditions of a particular retail licence or combined

licence; or

                    (b)                   the standard conditions of retail licences or combined

45

licences,

 

 

Water Bill [HL]
Schedule 4 — Licensing of water suppliers

    153

 

                              to such extent as may appear to the relevant authority to be requisite

or expedient for the purpose of giving effect to, or taking account of,

any provision made by the order.

              (2)             In subsection (1) above “relevant order” means—

                    (a)                   an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11

5

of Schedule 7 to, the Enterprise Act 2002 where—

                           (i)                          one or more than one of the enterprises which have,

or may have, ceased to be distinct enterprises was

engaged in the carrying on of activities authorised or

regulated by a retail licence or combined licence; or

10

                           (ii)                         one or more than one of the enterprises which will or

may cease to be distinct enterprises is engaged in the

carrying on of activities authorised or regulated by a

retail licence or combined licence; or

                    (b)                   an order under section 160 or 161 of that Act where the

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feature, or combination of features, of the market in the

United Kingdom for goods or services which prevents,

restricts or distorts competition relates to activities

authorised or regulated by a retail licence or combined

licence.

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              (3)             The modification under subsection (1)(a) above of part of a standard

condition of a particular licence shall not prevent any other part of

the condition from continuing to be regarded as a standard condition

for the purposes of this Chapter.

              (4)             Where at any time the relevant authority modifies under subsection

25

(1)(b) above the standard conditions of retail licences or combined

licences, the relevant authority—

                    (a)                   shall also make (as nearly as may be) the same modifications

of those conditions for the purposes of their incorporation in

licences of that description granted after that time; and

30

                    (b)                   may, after consultation with the Authority, make such

incidental or consequential modifications as the relevant

authority considers necessary or expedient of any conditions

of licences of that description granted before that time.

              (5)             Where at any time the relevant authority modifies standard

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conditions of retail licences or combined licences under subsection

(4)(a) above for the purposes of their incorporation in licences, the

relevant authority shall publish those modifications in such manner

as the relevant authority considers appropriate.

              (6)             Expressions used in subsection (2) above and in Part 3 or 4 of the

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Enterprise Act 2002 have the same meaning in that subsection as in

that Part.”

  3        After Chapter 2 of Part 3 of the WIA there is inserted—

 

 

 
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