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Water Bill [HL]


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

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              (3)             For the purposes of subsection (1)(b) above, the appropriate amount

is the amount which the water undertaker—

                    (a)                   reasonably expected to recover from relevant customers; but

                    (b)                   is unable to recover from those customers as a result of their

premises being supplied with water by the licensed water

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supplier.

              (4)             Nothing in subsection (3) above shall enable a water undertaker to

recover any amount—

                    (a)                   to the extent that any expenses can be reduced or avoided; or

                    (b)                   to the extent that any amount is recoverable in some other

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way (other than from other customers of the undertaker).

              (5)             In this section “relevant customers” means customers to whose

premises the licensed water supplier is to make any supply of water

in connection with which the agreement or determination

mentioned in subsection (1) above is made.

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       66F            Section 66D: supplementary

              (1)             Before the Authority makes—

                    (a)                   a determination for the purposes of subsection (1) of section

66D above as to whether any condition specified in section

66B(5) or (6) above is satisfied; or

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                    (b)                   a determination for the purposes of subsection (2)(b) of

section 66D above as to the period for which and terms and

conditions on which a water undertaker is to perform any

duty under section 66B above,

                              it shall consult the Secretary of State (subject to subsection (3) below).

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              (2)             Before the Authority makes—

                    (a)                   a determination for the purposes of subsection (1) of section

66D above as to whether any condition specified in section

66C(5) or (6) is satisfied; or

                    (b)                   a determination for the purposes of subsection (2)(b) of

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section 66D above as to the period for which and terms and

conditions on which the water undertakers are to perform

any duty under section 66C above,

                              it shall consult the Secretary of State (subject to subsections (3) and

(4) below) and the Environment Agency.

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              (3)             If a determination mentioned in subsection (1) or (2) above—

                    (a)                   is in relation to premises supplied with water using the

supply system of a water undertaker whose area is wholly or

mainly in Wales; and

                    (b)                   in the case of a determination mentioned in subsection (2)

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above, the area of the secondary undertaker in question is

wholly or mainly in Wales,

                              the Authority shall consult the Assembly (and not the Secretary of

State).

              (4)             If a determination mentioned in subsection (2) above—

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

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                    (a)                   is in relation to premises supplied with water using the

supply system of a water undertaker whose area is wholly or

mainly in—

                           (i)                          England; or

                           (ii)                         Wales;

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                    (b)                   but the area of the secondary water undertaker in question is

(respectively) wholly or mainly in—

                           (i)                          Wales; or

                           (ii)                         England,

                              the Authority shall consult the Assembly (as well as the Secretary of

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State).

              (5)             The Authority shall publish guidance issued under section 66D(4)

above in such manner as the Authority considers appropriate for the

purpose of bringing it to the attention of persons likely to be affected

by it.

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              (6)             The Authority may from time to time revise the guidance so issued.

              (7)             Before revising any guidance under subsection (6) above, the

Authority shall consult such persons as it considers appropriate.

              (8)             Subsection (5) above applies to guidance revised under subsection

(6) above as it applies to guidance issued under section 66D(4) above.

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              (9)             In this section, references to the supply system of a water undertaker

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

              (10)            Where the period for which and terms and conditions on which a

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

above are determined in accordance with subsection (2)(b) of section

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66D above, they shall have effect as if they had been agreed between

the parties in question (and references in the following provisions of

this Act to an agreement under this section shall be construed

accordingly).

       66G Designation of strategic supply

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              (1)             Subsection (2) below applies if at any time the Authority determines

that an introduction of water which a water undertaker is required

to permit under section 66B or 66C above in accordance with an

agreement under section 66D above constitutes a strategic supply of

water.

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              (2)             The Authority shall designate the supply as a strategic supply.

              (3)             Subsection (4) below applies if—

                    (a)                   a water undertaker requests the Authority to make a

determination that an introduction of water constitutes a

strategic supply for the purposes of subsection (1) above, or

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                    (b)                   the Authority otherwise proposes to make a determination

that an introduction of water constitutes a strategic supply

for the purposes of that subsection.

              (4)             The Authority shall give notice of the request or proposed

determination to—

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

    163

 

                    (a)                   the Secretary of State;

                    (b)                   the Assembly;

                    (c)                   the Environment Agency;

                    (d)                   the other party or parties, or the parties, to the agreement

under section 66D above; and

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                    (e)                   such other persons (if any) as the Authority thinks it

appropriate to notify.

              (5)             Any such notice shall specify the time (not being less than twenty-

eight days from the date on which the notice was given) within

which representations or objections with respect to the request or

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proposed determination may be made.

              (6)             The Authority shall consider any representations or objections which

are duly made and not withdrawn.

              (7)             If the Authority determines that a supply no longer constitutes a

strategic supply, it shall cancel the designation of the supply as a

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strategic supply.

              (8)             If the Authority proposes to make a determination under subsection

(7) above that a supply no longer constitutes a strategic supply, it

shall give notice of the proposed determination to the persons

specified in paragraphs (a) to (d) of subsection (4) above.

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              (9)             Subsection (5) above applies to a notice under subsection (8) above

as it applies to a notice under subsection (4) above (and subsection

(6) above applies accordingly).

              (10)            For the purposes of this section, a supply of water is a strategic

supply if, without that supply being made, there is a substantial risk

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that the water undertaker would be unable to maintain supplies to

its own customers as well as supplying customers of the licensed

water supplier in question with water for domestic purposes.

Offences

       66H Prohibition on unauthorised use of supply system

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              (1)             Subject to subsections (2) and (3) and section 66J below, no person

shall use a water undertaker’s supply system for the purpose of

supplying water to any premises of a customer.

              (2)             Subsection (1) above shall not apply where the supply is made—

                    (a)                   by a water undertaker, or

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                    (b)                   by a licensed water supplier in pursuance of its licence.

              (3)             The Secretary of State may by regulations specify further

circumstances in which subsection (1) above shall not apply.

              (4)             A person who contravenes subsection (1) above shall be guilty of an

offence.

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              (5)             Any undertaking entered into which involves a contravention of

subsection (1) above shall be unenforceable.

 

 

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

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              (6)             A person guilty of an offence under this section shall be liable—

                    (a)                   on summary conviction, to a fine not exceeding the statutory

maximum, and

                    (b)                   on conviction on indictment, to a fine.

              (7)             No proceedings for an offence under this section shall be instituted

5

except by—

                    (a)                   the Secretary of State, or

                    (b)                   the Authority.

              (8)             The functions of—

                    (a)                   making regulations under subsection (3) above; and

10

                    (b)                   instituting proceedings under subsection (7)(a) above,

                              are exercisable by the Assembly (and not by the Secretary of State) in

relation to any supply system of a water undertaker whose area is

wholly or mainly in Wales.

              (9)             In this section and section 66I below, references to the supply system

15

of a water undertaker shall be construed in accordance with section

17B(5) above.

       66I            Prohibition on unauthorised introduction of water

              (1)             Subject to subsections (2) and (3) and section 66J below, no person

shall introduce water into a water undertaker’s supply system (other

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than the undertaker itself).

              (2)             Subsection (1) above shall not apply where the water is introduced—

                    (a)                   by a licensed water supplier in pursuance of its licence, or

                    (b)                   by another water undertaker under an agreement with the

undertaker in question or in accordance with section 40

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above.

              (3)             The Secretary of State may by regulations specify further

circumstances in which subsection (1) above shall not apply.

              (4)             A person who contravenes subsection (1) above shall be guilty of an

offence.

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              (5)             Any undertaking entered into which involves a contravention of

subsection (1) above shall be unenforceable.

              (6)             A person guilty of an offence under this section shall be liable—

                    (a)                   on summary conviction, to a fine not exceeding £20,000, and

                    (b)                   on conviction on indictment, to a fine.

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              (7)             For the purposes of section 210 below, the penalty on conviction on

indictment of an offence under this section shall be deemed to

include imprisonment (in addition to or instead of a fine) for a term

not exceeding two years.

              (8)             No proceedings for an offence under this section shall be instituted

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except by—

                    (a)                   the Secretary of State; or

                    (b)                   the Authority.

 

 

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

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              (9)             The functions of—

                    (a)                   making regulations under subsection (3) above; and

                    (b)                   instituting proceedings under subsection (8)(a) above,

                              are exercisable by the Assembly (and not by the Secretary of State) in

relation to any supply system of a water undertaker whose area is

5

wholly or mainly in Wales.

       66J            Sections 66H and 66I: exemptions

              (1)             The Secretary of State may by order made by statutory instrument

grant exemption from section 66H(1) or 66I(1) above to—

                    (a)                   a person or persons of a class;

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                    (b)                   generally or to such extent as may be specified in the order;

and

                    (c)                   unconditionally or subject to such conditions as may be so

specified.

              (2)             Before making an order under subsection (1) above the Secretary of

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State shall give notice—

                    (a)                   stating that he proposes to make such an order and setting

out the terms of the proposed order;

                    (b)                   stating the reasons why he proposes to make the order in the

terms proposed; and

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

from the date of publication of the notice) within which

representations or objections with respect to the proposals

may be made,

                              and shall consider any representations or objections which are duly

25

made and not withdrawn.

              (3)             The notice required by subsection (2) above shall be given—

                    (a)                   by serving a copy of it on the Authority; and

                    (b)                   by publishing it in such manner as the Secretary of State

considers appropriate for bringing it to the attention of those

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likely to be affected by the proposed order.

              (4)             Notice of an exemption granted to a person shall be given—

                    (a)                   by serving a copy of the exemption on him; and

                    (b)                   by publishing the exemption in such manner as the Secretary

of State considers appropriate for bringing it to the attention

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of other persons who may be affected by it.

              (5)             Notice of an exemption granted to persons of a class shall be given

by publishing the exemption in such manner as the Secretary of State

considers appropriate for bringing it to the attention of—

                    (a)                   persons of that class; and

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                    (b)                   other persons who may be affected by it.

              (6)             An exemption may be granted—

                    (a)                   indefinitely; or

                    (b)                   for a period specified in, or determined by or under, the

exemption.

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

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              (7)             Conditions included in an exemption by virtue of subsection (1)(c)

above may, in particular, require any person carrying on any activity

in pursuance of the exemption—

                    (a)                   to comply with any direction given by the Secretary of State

or the Authority as to such matters as are specified in the

5

exemption or are of a description so specified;

                    (b)                   except in so far as the Secretary of State or the Authority

consents to his doing or not doing them, not to do or to do

such things as are specified in the exemption or are of a

description so specified; and

10

                    (c)                   to refer for determination by the Secretary of State or the

Authority such questions arising under the exemption as are

specified in the exemption or are of a description so specified.

       66K            Section 66J: supplementary

              (1)             The Secretary of State may by order made by statutory instrument

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revoke an order by which an exemption was granted to a person

under section 66J(1) above or vary an order by which more than one

exemption was so granted so as to terminate any of the exemptions—

                    (a)                   at the person’s request;

                    (b)                   in accordance with any provision of the order by which the

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exemption was granted; or

                    (c)                   if it appears to the Secretary of State inappropriate that the

exemption should continue to have effect.

              (2)             The Secretary of State may by order made by statutory instrument

revoke an order by which an exemption was granted to persons of a

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class under section 66J(1) above or vary an order by which more than

one exemption was so granted so as to terminate any of the

exemptions—

                    (a)                   in accordance with any provision of the order by which the

exemption was granted; or

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                    (b)                   if it appears to the Secretary of State inappropriate that the

exemption should continue to have effect.

              (3)             The Secretary of State may by direction withdraw an exemption

granted to persons of a class under section 66J(1) above from any

person of that class—

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                    (a)                   at the person’s request;

                    (b)                   in accordance with any provision of the order by which the

exemption was granted; or

                    (c)                   if it appears to the Secretary of State inappropriate that the

exemption should continue to have effect in the case of the

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person.

              (4)             Before making an order under subsection (1)(b) or (c) or (2) above or

giving a direction under subsection (3)(b) or (c) above, the Secretary

of State shall—

                    (a)                   consult the Authority; and

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                    (b)                   give notice—

                           (i)                          stating that he proposes to make such an order or give

such a direction;

 

 

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

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                           (ii)                         stating the reasons why he proposes to make such an

order or give such a direction; and

                           (iii)                        specifying the time (not being less than twenty-eight

days from the date of publication of the notice) within

which representations or objections with respect to

5

the proposals may be made,

                                          and shall consider any representations or objections which

are duly made and not withdrawn.

              (5)             The notice under subsection (4) above shall be given—

                    (a)                   where the Secretary of State is proposing to make an order

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under subsection (1)(b) or (c) above, by serving a copy of it on

the person to whom the exemption was granted;

                    (b)                   where he is proposing to make an order under subsection (2)

above, by publishing it in such manner as the Secretary of

State considers appropriate for bringing it to the attention of

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persons of the class of persons to whom the exemption was

granted; and

                    (c)                   where he is proposing to give a direction under subsection

(3)(b) or (c) above, by serving a copy of it on the person from

whom he proposes to withdraw the exemption.

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              (6)             A statutory instrument containing an order under subsection (1) or

(2) above or subsection (1) of section 66J above shall be subject to

annulment in pursuance of a resolution of either House of

Parliament.

              (7)             The power to—

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                    (a)                   make an order under subsection (1) or (2) above or subsection

(1) of section 66J above; or

                    (b)                   give a direction under subsection (3) above,

                              is exercisable by the Assembly (and not by the Secretary of State) in

relation to any supply system of a water undertaker whose area is

30

wholly or mainly in Wales.

              (8)             Accordingly, subsections (1) to (5) above and section 66J above apply

in relation to an order made or a direction given by the Assembly by

virtue of subsection (7) above as they apply in relation to an order

made or direction given by the Secretary of State.”

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  4       (1)      The Water Services Regulation Authority (“the Authority”) may, in

accordance with this paragraph, modify the conditions of appointment of a

company appointed under Chapter 1 of Part 2 of the WIA to be a water

undertaker where it considers it necessary or expedient to do so in

consequence of the amendments to the WIA made by this Schedule and

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Schedule 8.

          (2)      Where the Authority modifies under sub-paragraph (1) any conditions of

appointment it may make such incidental or consequential modifications as

it considers necessary or expedient of other conditions of the appointment.

          (3)      Before making any modifications under sub-paragraph (1) or (2), the

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Authority shall consult—

              (a)             the company holding the appointment; and

              (b)             such other persons (if any) as the Authority thinks it appropriate to

consult.

 

 

 
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