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Water Bill [HL]


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

    154

 

“Chapter 2A

Supply duties etc: licensed water suppliers

Duty of undertaker to supply licensed water supplier etc

       66A            Wholesale water supply by primary water undertaker

              (1)             This section applies where—

5

                    (a)                   a licensed water supplier requests its primary water

undertaker to provide it with a supply of water for the

purpose of supplying water to the premises of its customers

in accordance with the retail authorisation; and

                    (b)                   the premises are in the area of the undertaker.

10

              (2)             Where this section applies, it shall be the duty of the primary water

undertaker, in accordance with an agreement or determination for

such period and containing such terms and conditions as may be

provided for under section 66D(2) below—

                    (a)                   to take any such steps—

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                           (i)                          for the purpose of connecting the premises in

question with the undertaker’s supply system; or

                           (ii)                         in respect of that system,

                                          as may be so provided for in order to enable the undertaker

to provide the requested supply; and

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                    (b)                   having taken any such steps, to provide that supply.

              (3)             A primary water undertaker shall not be required by virtue of this

section to provide a supply of water to a licensed water supplier, or

to take any steps to enable it to provide such a supply, if—

                    (a)                   both of the first and second conditions are satisfied; or

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                    (b)                   the third condition is satisfied.

              (4)             The first condition is that—

                    (a)                   the premises to be supplied by the supplier do not consist in

the whole or any part of a building; or

                    (b)                   the supply to be made by it to those premises is for purposes

30

other than domestic purposes.

              (5)             The second condition is that the provision of the supply by the

undertaker would—

                    (a)                   require the undertaker, in order to meet all its existing

obligations to supply water for domestic or other purposes,

35

together with its probable future obligations to supply

buildings and parts of buildings with water for domestic

purposes, to incur unreasonable expenditure in carrying out

works; or

                    (b)                   otherwise put at risk its ability to meet any of the existing or

40

probable future obligations mentioned in paragraph (a)

above.

              (6)             The third condition is that there is a contravention in relation to the

water fittings used or to be used in connection with—

 

 

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

    155

 

                    (a)                   the supply of water to the premises to be supplied by the

supplier; or

                    (b)                   the use of water in those premises,

                              of such of the requirements of regulations under section 74 below as

are prescribed for the purposes of this subsection.

5

              (7)             Where—

                    (a)                   a request has been made by a licensed water supplier to its

primary water undertaker for the purposes of subsection (1)

above; and

                    (b)                   the steps which the undertaker is required to take by virtue

10

of that request include steps for the purpose of obtaining any

necessary authority for, or agreement to, any exercise by it of

any of its powers or the carrying out by it of any works,

                              the failure of the undertaker to acquire the necessary authority or

agreement shall not affect any liability of the licensed water supplier,

15

under any term or condition in accordance with which those steps

are taken, to reimburse the undertaker in respect of some or all of the

expenses incurred by it in taking those steps.

              (8)             A water undertaker is the primary water undertaker of a licensed

water supplier for the purposes of this section and section 66C below

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if the undertaker’s supply system is to be used for the purpose of

making the supply to premises mentioned in those sections.

              (9)             In this section and sections 66B and 66C below—

                    (a)                   any reference to the supply system of a water undertaker

shall be construed in accordance with section 17B(5) above;

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and

                    (b)                   any reference to the retail authorisation shall be construed in

accordance with section 17A(2) above.

       66B            Introduction of water into water undertaker’s supply system

              (1)             This section applies where—

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                    (a)                   a qualifying licensed water supplier requests a water

undertaker to permit it to introduce water into the

undertaker’s supply system, by means of which any

particular supply of water to any premises in accordance

with the retail authorisation is to take place, in connection

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with that supply; and

                    (b)                   the premises are in the area of the undertaker.

              (2)             This section also applies where—

                    (a)                   a water undertaker agrees to permit a qualifying licensed

water supplier to introduce water into the undertaker’s

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treatment works;

                    (b)                   in connection with that introduction, the supplier requests

the undertaker to permit it to introduce water into the

undertaker’s supply system, by means of which any

particular supply of water to any premises in accordance

45

with the retail authorisation is to take place, in connection

with that supply; and

 

 

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

    156

 

                    (c)                   the premises are in the area of the undertaker.

              (3)             Where this section applies, it shall be the duty of the water

undertaker, in accordance with an agreement or determination for

such period and containing such terms and conditions as may be

provided for under section 66D(2) below—

5

                    (a)                   to take any such steps—

                           (i)                          for the purpose of connecting the premises in

question with the undertaker’s supply system;

                           (ii)                         for the purpose of connecting the treatment works of

the qualifying licensed water supplier with that

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system (in a case falling within subsection (1) above);

                           (iii)                        for the purpose of connecting with that system any

source used by the qualifying licensed water supplier

for the purpose of supplying water other than for

domestic or food production purposes (in a case

15

falling within subsection (1) above); or

                           (iv)                         in respect of that system,

                                          as may be so provided for in order to enable the supplier to

make the requested introduction of the water into that

system; and

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                    (b)                   having taken any such steps, to permit the requested

introduction of the water into that system.

              (4)             A water undertaker shall not be required by virtue of this section to

permit the introduction of water into its supply system, or to take

any steps to enable a qualifying water supplier to make such an

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introduction, if the first or second condition is satisfied.

              (5)             The first condition is that permitting the introduction of the water

into the water undertaker’s supply system would—

                    (a)                   require the undertaker, in order to meet all its existing

obligations to supply water for domestic or other purposes,

30

together with its probable future obligations to supply

buildings and parts of buildings with water for domestic

purposes, to incur unreasonable expenditure in carrying out

works; or

                    (b)                   otherwise put at risk its ability to meet any of the existing or

35

probable future obligations mentioned in paragraph (a)

above.

              (6)             The second condition is that there is a contravention in relation to the

water fittings used or to be used in connection with—

                    (a)                   the supply of water to the premises to be supplied by the

40

supplier; or

                    (b)                   the use of water in those premises,

                              of such of the requirements of regulations under section 74 below as

are prescribed for the purposes of section 66A(6) above.

              (7)             Where—

45

                    (a)                   a request has been made by a qualifying licensed water

supplier to a water undertaker for the purposes of subsection

(1) or (2) above; and

 

 

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

    157

 

                    (b)                   the steps which the undertaker is required to take by virtue

of that request include steps for the purpose of obtaining any

necessary authority for, or agreement to, any exercise by it of

any of its powers or the carrying out by it of any works,

                              the failure of the undertaker to acquire the necessary authority or

5

agreement shall not affect any liability of the supplier, under any

term or condition in accordance with which those steps are taken, to

reimburse the undertaker in respect of some or all of the expenses

incurred by it in taking those steps.

              (8)             In this section “treatment works”—

10

                    (a)                   in relation to a water undertaker, means the works

designated as treatment works by the Secretary of State for

the purposes of section 17B(6) above;

                    (b)                   in relation to a qualifying licensed water supplier, means the

works designated from time to time by the Secretary of State

15

as treatment works for the purposes of this paragraph.

              (9)             Before designating any works for the purposes of subsection (8)(b)

above, the Secretary of State shall consult the Assembly.

              (10)            A list of any works designated for the purposes of subsection (8)(b)

above shall be published from time to time by the Secretary of State

20

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.

              (11)            Any pipe laid in pursuance of subsection (3)(a)(ii) or (iii) above shall

be regarded as a water main for the purposes of this Act, subject to

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any provision to the contrary.

              (12)            In this section and section 66C below, references to a qualifying

licensed water supplier are references to a licensed water supplier

which is the holder of a combined licence (within the meaning of

Chapter 1A of Part 2 of this Act).

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       66C            Wholesale water supply by secondary water undertaker

              (1)             This section applies where—

                    (a)                   a qualifying licensed water supplier—

                           (i)                          requests a water undertaker other than its primary

water undertaker (the “secondary water undertaker”)

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to provide a supply of water for the purpose of the

supplier supplying water, using the primary water

undertaker’s supply system, to the premises of the

supplier’s customers in accordance with the retail

authorisation; and

40

                           (ii)                         requests its primary water undertaker to permit it to

introduce that water into its supply system; and

                    (b)                   the premises are in the area of the primary undertaker.

              (2)             Where this section applies—

                    (a)                   it shall be the duty of the secondary water undertaker, in

45

accordance with an agreement or determination for such

 

 

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

    158

 

                    (a)                   period and containing such terms and conditions as may be

provided for under section 66D(2) below—

                           (i)                          to take any such steps in respect of its supply system

as may be so provided for in order to enable it to

provide the requested supply; and

5

                           (ii)                         having taken any such steps, to provide that supply;

and

                    (b)                   it shall be the duty of the primary water undertaker, in

accordance with an agreement or determination for such

period and containing such terms and conditions as may be

10

provided for under section 66D(2) below—

                           (i)                          to take any such steps specified in subsection (3)

below as may be so provided for in order to enable the

licensed water supplier to make the introduction of

requested supply of water into the primary

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undertaker’s supply system; and

                           (ii)                         having taken any such steps, to permit the

introduction of that supply of water into that supply

system.

              (3)             The steps mentioned in subsection (2)(b)(i) above are steps—

20

                    (a)                   for the purpose of connecting the premises in question with

the primary undertaker’s supply system;

                    (b)                   for the purpose of connecting that system with the secondary

water undertaker’s supply system; or

                    (c)                   in respect of the primary undertaker’s supply system.

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              (4)             If the first or second condition is satisfied—

                    (a)                   a secondary water undertaker shall not be required by virtue

of this section to provide a supply of water to a licensed water

supplier; and

                    (b)                   a primary water undertaker shall not be required by virtue of

30

this section to permit the introduction of water into its supply

system, or to take any steps to enable the licensed water

supplier to make such an introduction.

              (5)             The first condition is that the provision of the supply or permitting

the introduction would—

35

                    (a)                   require the undertaker in question, in order to meet all its

existing obligations to supply water for domestic or other

purposes, together with its probable future obligations to

supply buildings and parts of buildings with water for

domestic purposes, to incur unreasonable expenditure in

40

carrying out works; or

                    (b)                   otherwise put at risk its ability to meet any of the existing or

probable future obligations mentioned in paragraph (a)

above.

              (6)             This second condition is that there is a contravention in relation to

45

the water fittings used or to be used in connection with—

                    (a)                   the supply of water to the premises to be supplied by the

supplier; or

                    (b)                   the use of water in those premises,

 

 

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

    159

 

                              of such of the requirements of regulations under section 74 below as

are prescribed for the purposes of section 66A(6) above.

              (7)             Where—

                    (a)                   requests have been made by a licensed water supplier to its

primary water undertaker and secondary water undertaker

5

for the purposes of subsection (1) above; and

                    (b)                   the steps which either of those undertakers is required to take

by virtue of the request made to it include steps for the

purpose of obtaining any necessary authority for, or

agreement to, any exercise by it of any of its powers or the

10

carrying out by it of any works,

                              the undertaker’s failure to acquire the necessary authority or

agreement shall not affect any liability of the licensed water supplier,

under any term or condition in accordance with which those steps

are taken, to reimburse the undertaker in respect of some or all of the

15

expenses incurred by it in taking those steps.

              (8)             Any pipe laid in pursuance of subsection (2)(b)(i) above by virtue of

subsection (3)(b) above shall be regarded as a water main for the

purposes of this Act, subject to any provision to the contrary.

       66D                        Sections 66A to 66C: determinations and agreements

20

              (1)             The Authority may determine, in a case referred to it by a licensed

water supplier, whether any condition specified in section 66A(4) to

(6), 66B(5) or (6) or 66C(5) or (6) above is satisfied (subject to section

66F below).

              (2)             The period for which and terms and conditions on which a water

25

undertaker is to perform any duty under sections 66A to 66C above

are—

                    (a)                   those which are—

                           (i)                          in a case falling within section 66A(2) or 66B(3) above,

agreed between the water undertaker and the

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licensed water supplier in question; and

                           (ii)                         in a case falling within section 66C(2) above, agreed

between the water undertakers and the licensed

water supplier in question; or

                    (b)                   in default of such agreement, those which are determined by

35

the Authority, in a case referred to it by the licensed water

supplier in question, if they are acceptable to the supplier,

                              (subject to the following provisions of this section and sections 66E

and 66F below).

              (3)             The charges payable by a licensed water supplier to a water

40

undertaker under an agreement under paragraph (a)(i) or (ii) of

subsection (2) above or a determination under paragraph (b) of that

subsection shall be fixed in accordance with the costs principle set

out in section 66E below.

              (4)             The Authority shall issue guidance in accordance with which the

45

terms and conditions of an agreement under paragraph (a)(i) or (ii)

of subsection (2) above shall be made.

 

 

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

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              (5)             Before issuing guidance under subsection (4) above, the Authority

shall consult such persons as it considers appropriate.

              (6)             The guidance issued under subsection (4) above shall include

guidance with respect to the fixing of charges in accordance with

subsection (3) above.

5

              (7)             Subsection (8) below applies if it appears to the Authority that an

agreement under paragraph (a)(i) or (ii) of subsection (2) above has

not been made in accordance with—

                    (a)                   subsection (3) above; or

                    (b)                   the guidance issued under subsection (4) above.

10

              (8)             The Authority may require the parties to the agreement to—

                    (a)                   modify the agreement; or

                    (b)                   terminate the agreement,

                              and that requirement shall be enforceable under section 18 above by

the Authority.

15

              (9)             Neither the Office of Fair Trading nor the Authority may exercise, in

respect of an agreement under paragraph (a)(i) or (ii) of subsection

(2) above, the powers conferred by—

                    (a)                   section 32 of the Competition Act 1998 (directions in relation

to agreements); and

20

                    (b)                   subsection (2) of section 35 of that Act (interim directions).

              (10)            Subsection (9)(b) above does not apply to the exercise of powers in

respect of conduct—

                    (a)                   which is connected with an agreement under paragraph (a)(i)

or (ii) of subsection (2) above; and

25

                    (b)                   in respect of which subsection (1)(b) of section 35 of that Act

applies.

       66E            Section 66D: costs principle

              (1)             The costs principle referred to in subsection (3) of section 66D above

is that the charges payable by a licensed water supplier to a water

30

undertaker, under the agreement or determination mentioned in that

subsection, shall enable the undertaker to recover from the

supplier—

                    (a)                   any expenses reasonably incurred in performing any duty

under sections 66A to 66C above in accordance with that

35

agreement or determination, and

                    (b)                   the appropriate amount in respect of qualifying expenses and

a reasonable return on that amount,

                              to the extent that those sums exceed any financial benefits which the

undertaker receives as a result of the supplier supplying water to the

40

premises of relevant customers.

              (2)             In subsection (1) above “qualifying expenses” means expenses

(whether of a capital nature or otherwise) that the water undertaker

has reasonably incurred or will reasonably incur in carrying out its

functions.

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