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Water Bill [HL]


Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

    188

 

  8       (1)      Section 24 (special administration orders made on special petitions) is

amended as follows.

          (2)      After subsection (1), there is inserted—

              “(1A)                 If on an application made to the High Court by petition presented—

                    (a)                   by the Secretary of State (after consulting the Assembly); or

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                    (b)                   with the consent of the Secretary of State (after consulting the

Assembly), the Authority,

                              the Court is satisfied in relation to any company which is a qualifying

licensed water supplier that any one or more of the grounds

specified in subsection (2) below is satisfied in relation to that

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company, that Court may make a special administration order in

relation to that company.”

          (3)      In subsection (2)—

              (a)             for “subsection (1)” there is substituted “subsections (1) and (1A)”,

              (b)             in paragraphs (a) and (b), after “appointment” there is inserted “or

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licence”,

              (c)             after paragraph (b) there is inserted—

                           “(bb)                             in the case of a company which is a qualifying

licensed water supplier, that—

                                 (i)                                action taken by the company has caused a

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contravention by a water undertaker of any

principal duty; and

                                 (ii)                               that action is serious enough to make it

inappropriate for the company to continue to

hold its licence;”,

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              (d)             in paragraph (d), after “this Part” there is inserted “or was not a

qualifying licensed water supplier”, and

              (e)             in paragraph (e), at the beginning there is inserted “in the case of a

company holding an appointment under Chapter 1 of this Part,”.

          (4)      For subsection (7) there is substituted—

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              “(7)                 In this section “principal duty” means—

                    (a)                   in relation to a company holding an appointment under

Chapter 1 of this Part, a requirement imposed on the

company by section 37 or 94 below;

                    (b)                   in relation to a company which is a qualifying licensed water

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supplier, any condition of its licence or any statutory

requirement imposed on it in consequence of its licence.”

  9        In section 25 (power to make special administration order on a winding

up)—

              (a)             after “this Part” there is inserted “or is a qualifying licensed water

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supplier”; and

              (b)             in paragraph (b), after “appointment” there is inserted “or a

qualifying licensed water supplier”.

  10       In section 26 (restrictions on voluntary winding up and insolvency

proceedings), after “this Part” there is inserted “or is a qualifying licensed

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water supplier”.

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

    189

 

  11      (1)               Section 27 (general duty of Authority to keep matters under review) is

amended as follows.

          (2)                        In subsection (1), for the words from “water” to the end there is

substituted—

                    “(a)                      water undertakers or sewerage undertakers carry out

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functions; and

                    (b)                      licensed water suppliers carry on activities authorised by

their licences.”

          (3)                        In subsection (2)—

              (a)             after paragraph (a) there is inserted—

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                           “(aa)                             the carrying on by companies holding licences under

Chapter 1A of this Part of the activities authorised by

their licences; or”; and

              (b)             in paragraph (b), for “such company” there is substituted “company

mentioned in paragraph (a) or (aa) above”.

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          (4)               In subsection (4), at the end of paragraph (b) there is inserted “or

                    (c)                      the activities authorised by retail licences or combined

licences; or

                    (d)                      the carrying on of any such activities by a company holding

any such licence.”

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  12      (1)               Section 39A (information to be given to customers about overall

performance) is amended as follows.

          (2)               In subsection (1), after “customers” there is inserted “, and, if the direction so

specifies, licensed water suppliers using the undertaker’s supply system for

the purpose of supplying water to the premises of customers or those

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customers,”.

          (3)               After subsection (2) there is inserted—

              “(2A)                The licensed water suppliers referred to in subsection (1) above shall,

if the Authority so directs, pass on the information about the matters

mentioned in that subsection to their customers.

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              (2B)                In subsection (1) above, the reference to the water undertaker’s

supply system shall be construed in accordance with section 17B(5)

above.”

          (4)      In subsection (3), after “undertaker” there is inserted “or licensed water

supplier”.

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  13      (1)      Section 43 (calculation of payments to undertaker in respect of provision of

water main) is amended as follows.

          (2)      In subsection (1), for “water charges payable for the use during that year of

that main are” there is substituted “relevant revenue in respect of that main

for that year is”.

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          (3)      For subsection (7) there is substituted—

              “(7)                Any reference in this section to the relevant revenue in respect of a

main provided by a water undertaker for any year is—

                    (a)                   in relation to premises connected with the main which are

supplied with water by the undertaker, is a reference to so

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much of the aggregate of any charges payable to the

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

    190

 

undertaker in respect of services provided in the course of

that year as represents charges which—

                           (i)                          have been imposed by the undertaker in relation to

those premises, and

                           (ii)                         are reasonably attributable to the provision of a

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supply of water (whether or not for domestic

purposes) to those premises by means of that main,

                    (b)                   in relation to premises connected with the main which are

supplied with water by a licensed water supplier, is a

reference to so much of the aggregate of any charges made

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during the course of that year which—

                           (i)                          are payable by the supplier to the undertaker in

respect of the duty under section 66A(2)(b), 66B(3)(b)

or 66C(2)(b)(ii) below; and

                           (ii)                         are reasonably attributable to the use of that main for

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the purpose of the supplier supplying water to those

premises.”

  14      (1)      Section 52 (the domestic supply duty) is amended as follows.

          (2)      In subsection (3), at the beginning there is inserted “Subject to subsection

(4A) below,”.

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          (3)      After subsection (4) there is inserted—

              “(4A)                This section does not apply to any premises if—

                    (a)                   they are not in the area of the water undertaker;

                    (b)                   they are not household premises (as defined in section 17C

above); and

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                    (c)                   the total quantity of water estimated to be supplied to them

annually for the purposes of subsection (2) of section 17D

above is not less than the quantity specified in that

subsection.”

          (4)      After subsection (6) there is inserted—

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              “(6A)                For the purposes of this section, there is also an interruption of the

domestic supply duty owed by a water undertaker in relation to any

premises where—

                    (a)                   a notice is served in respect of those premises under section

63AA below; and

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                    (b)                   the time specified in that notice has passed.”

  15      (1)      Section 55 (supplies for non-domestic purposes) is amended as follows.

          (2)      After subsection (1) there is inserted—

              “(1A)                This section also applies where—

                    (a)                   a water undertaker is requested to provide a supply of water

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to premises which are not in the undertaker’s area by the

owner or occupier of the premises;

                    (b)                   the premises are household premises (as defined in section

17C above) or the total quantity of water estimated to be

supplied to the premises annually for the purposes of

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subsection (2) of section 17D above is less than the quantity

specified in that subsection; and

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

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                    (c)                   paragraph (a) or (b) of subsection (1) above applies.”

          (3)      In subsection (8), after “63” there is inserted “and 63AB”.

  16       After section 63 there is inserted—

“Supply by licensed water supplier etc

       63AA             Supply by licensed water supplier: domestic supply

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              (1)             The owner or occupier of any premises may serve a notice on a water

undertaker—

                    (a)                   informing the undertaker that the premises are to be supplied

by a licensed water supplier; and

                    (b)                   specifying the time after which a supply of water to the

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premises by the undertaker will no longer be required.

              (2)             Where the charges for the water supplied by the undertaker are,

under Chapter 1 of Part 5 of this Act, fixed in relation to the premises

by reference to volume, the time specified in the notice shall fall at

least two working days after the notice is served.

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              (3)             In this section and section 63AB below, any reference to two working

days is a reference to a period of forty-eight hours calculated after

disregarding any time falling on—

                    (a)                   a Saturday or Sunday; or

                    (b)                   Christmas Day, Good Friday or any day which is a bank

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holiday in England and Wales under the Banking and

Financial Dealings Act 1971.

       63AB             Supply by licensed water supplier: non-domestic supply

              (1)             The duty of a water undertaker under section 55 above to provide a

supply of water to any premises shall cease to apply if—

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                    (a)                   a notice specifying the time after which a supply of water to

the premises by the undertaker will no longer be required in

consequence of the premises being supplied by a licensed

water supplier has been served on the undertaker by the

owner or occupier of the premises; and

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                    (b)                   that time has passed.

              (2)             Where the charges for the water supplied by the undertaker are,

under Chapter 1 of Part 5 of this Act, fixed in relation to the premises

by reference to volume, the time specified in the notice shall fall at

least two working days after the notice is served.

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       63AC             Interim duty of water undertaker: domestic and non-domestic supply

              (1)             This section applies where—

                    (a)                   a licensed water supplier ceases to supply any premises with

water; and

                    (b)                   the owner or occupier of the premises has not notified the

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water undertaker in whose area the premises are that—

                           (i)                          he has made arrangements for the continuation of the

supply of water to the premises; or

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

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                           (ii)                         he intends any supply of water to the premises to

cease.

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

undertaker to continue the supply of water to the premises which

was made by the licensed water supplier.

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              (3)             Where a supply is made under subsection (2)—

                    (a)                   the charges payable in respect of the supply shall be fixed

from time to time by a charges scheme under section 143

below; and

                    (b)                   subject to subsection (7) below, the supply shall be made

10

until—

                           (i)                          a supply is made under section 52 or 55 above; or

                           (ii)                         a notice is served by the undertaker on the owner or

occupier of the premises stating that the supply is to

be discontinued (subject to subsection (4) below),

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                                          whichever is earlier.

              (4)             A notice under subsection (3)(b)(ii) above may not be served before

the end of the period of three months beginning with the day on

which the supply by the supplier ceased.

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

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provide a supply of water to any premises if the provision of the

supply would—

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

obligations to supply water for domestic or other purposes,

together with its probable future obligations to supply

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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

probable future obligations mentioned in paragraph (a)

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above.

              (6)             The supply of water to any premises by a water undertaker under

this section shall not prevent a proposed supply to those premises by

that undertaker under section 55 above from being regarded as a

new supply for the purposes of that section.

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              (7)                             Where a duty is imposed by this section in respect of any premises,

any breach of the duty which causes the owner or occupier of the

premises to sustain loss or damage shall be actionable at the suit of

that owner or occupier; but, in any proceedings brought against a

water undertaker in pursuance of this subsection, it shall be a

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defence for the undertaker to show that it took all reasonable steps

and exercised all due diligence to avoid the breach.

              (8)             Sections 60 to 63 above apply as they apply where a supply of water

is made under section 52 or 55 above.”

  17      (1)      Section 68 (water quality) is amended as follows.

45

          (2)      In subsection (1)—

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

    193

 

              (a)             after “water undertaker” there is inserted “where its supply system

is used for the purpose of supplying water to any premises for

domestic or food production purposes”;

              (b)             in paragraph (a), for the words from the beginning to “which” there

is substituted “to ensure that any water so supplied”;

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              (c)             in paragraph (b), for the words from “that undertaker” to “purposes”

there is substituted “water is so supplied”; and

              (d)             after that paragraph, there is inserted—

                                          “and this section and section 69 below apply, in relation to the

duty of an undertaker, whether or not the water supplied

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using the undertaker’s supply system is supplied by the

undertaker.”

          (3)      After that subsection, there is inserted—

              “(1A)                It shall be the duty of a licensed water supplier—

                    (a)                   when supplying water to any premises for domestic or food

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production purposes, in accordance with its retail

authorisation, to ensure that the water is wholesome at the

time of supply; and

                    (b)                   so far as reasonably practicable, to ensure, in relation to each

source or combination of sources from which that supplier

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supplies water to premises for domestic or food production

purposes, in accordance with its retail authorisation, that

there is, in general, no deterioration in the quality of the

water which is supplied from time to time from that source or

combination of sources,

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                              and references in this subsection to the retail authorisation shall be

construed in accordance with section 17A(2) above.”

          (4)      In subsection (2), for “water supplied by a water undertaker” there is

substituted “where a water undertaker’s supply system is used for the

purpose of supplying water to any premises, any water so supplied”.

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          (5)      In subsection (3)—

              (a)             for the words from “this section” to “premises” there is substituted

“subsection (1) above where a water undertaker’s supply system is

used for the purpose of supplying water to any premises, and the

water so supplied”; and

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              (b)             in paragraph (b), for “supplying the water, to take such steps” there

is substituted “the water is supplied, to ensure that such steps are

taken”.

          (6)      After that subsection there is inserted—

              “(3A)                For the purposes of subsection (1A) above where water supplied by

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a licensed water supplier to any premises would not otherwise be

regarded as unwholesome at the time of supply, that water shall be

regarded as unwholesome at that time if—

                    (a)                   it has ceased to be wholesome after leaving the relevant pipes

but while in a pipe which is subject to water pressure from a

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water main or which would be so subject but for the closing

of some valve; and

                    (b)                   it has so ceased in consequence of the failure of the supplier,

before supplying the water, to ensure that such steps are

 

 

Water Bill [HL]
Schedule 8 — Minor and consequential amendments: licensing of water suppliers etc

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taken as may be prescribed for the purpose of securing the

elimination, or reduction to a minimum, of any prescribed

risk that the water would cease to be wholesome after leaving

the relevant pipes.

              (3B)                In subsection (3A) above “relevant pipes” means the pipes of the

5

water undertaker whose supply system is used for the purpose of the

supply made by the licensed water supplier.”

          (7)      In subsection (5), after “undertaker” there is inserted “and licensed water

supplier”.

          (8)      After that subsection there is inserted—

10

              “(6)                In this section and sections 69 and 70 below references to the supply

system of a water undertaker are to the water mains and other pipes

which it is the undertaker’s duty to develop and maintain by virtue

of section 37 above.”

          (9)      In the side note (and the italic heading immediately preceding it), after

15

“undertakers” there is inserted “and licensed water suppliers”.

  18      (1)      Section 69 (regulations for preserving water quality) is amended as follows.

          (2)      In subsection (1), for “to take all such steps” there is substituted “or a

licensed water supplier to ensure that such steps are taken”.

          (3)      In subsection (2)—

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              (a)             after “water undertaker” there is inserted “or licensed water

supplier”;

              (b)             in paragraph (a)—

                    (i)                   for “take all such steps” there is substituted “ensure that all

such steps are taken”; and

25

                    (ii)                  for “which that undertaker supplies” there is substituted

“used for relevant supplies”;

              (c)             in paragraph (b)—

                    (i)                   for “take all such steps” there is substituted “ensure that all

such steps are taken”; and

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                    (ii)                  for “that undertaker uses or is proposing to use for supplying

water” there is substituted “is used or is proposed to be used

for making relevant supplies”;

              (d)             in paragraph (c), for “that undertaker is using or proposing to use for

supplying water” there is substituted “is used or proposed to be used

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for making relevant supplies”;

              (e)             in paragraph (d)—

                    (i)                   for “keep records” there is substituted “ensure that records

are kept”;

                    (ii)                  for “supplied with water” there is substituted “receiving

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relevant supplies”; and

                    (iii)                 the words “by that undertaker” are omitted; and

              (f)             in paragraph (e), for “comply with prescribed requirements” there is

substituted “ensure that prescribed requirements are complied

with”.

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          (4)      In subsection (3), for the words from “with respect” to “functions” there is

substituted “imposing obligations on water undertakers or licensed water

 

 

 
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