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Water Bill [HL]


Water Bill [HL]
Part 2 — New regulatory arrangements, etc

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                  (b)                 where the application relates to a decision of an enforcement

authority on an application by the company under section

22A(7) above, within forty-two days from the date the company

is notified of the decision.

           (3)           On any such application, where the court considers it appropriate to do

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so in all the circumstances of the case and is satisfied of one or more of

the grounds falling within subsection (4) below, the court—

                  (a)                 may quash the penalty;

                  (b)                 may substitute a penalty of such lesser amount as the court

considers appropriate in all the circumstances of the case; or

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                  (c)                 in the case of an application under subsection (1)(c) above, may

substitute for the date or dates imposed by the enforcement

authority an alternative date or dates.

           (4)           The grounds falling within this subsection are—

                  (a)                 that the imposition of the penalty was not within the power of

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the enforcement authority under section 22A above;

                  (b)                 that any of the requirements of subsections (4) to (6) or (8) of

section 22A above have not been complied with in relation to

the imposition of the penalty and the interests of the company

have been substantially prejudiced by the non-compliance; or

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                  (c)                 that it was unreasonable of the enforcement authority to require

the penalty imposed, or any portion of it, to be paid by the date

or dates by which it was required to be paid.

           (5)           If an application is made under this section in relation to a penalty, the

penalty is not required to be paid until the application has been

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determined.

           (6)           Where the court substitutes a penalty of a lesser amount it may require

the payment of interest on the substituted penalty at such rate, and

from such date, as it considers just and equitable.

           (7)           Where the court specifies as a date by which the penalty, or a portion of

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the penalty, is to be paid a date before the determination of the

application under this section it may require the payment of interest on

the penalty, or portion, from that date at such rate as it considers just

and equitable.

           (8)           Except as provided by this section, the validity of a penalty shall not be

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questioned by any legal proceedings whatever.

           (9)           In this section “the court” means the High Court.

       22F            Recovery of penalties

      Where a penalty imposed under section 22A(1) or (2) above, or any

portion of it, has not been paid by the date on which it is required to be

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paid and—

                  (a)                 no application relating to the penalty has been made under

section 22E above during the period within which such an

application can be made; or

                  (b)                 an application has been made under that section and

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determined,

 

 

Water Bill [HL]
Part 2 — New regulatory arrangements, etc

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                  the enforcement authority may recover from the company, as a civil

debt due to him or it, any of the penalty and any interest which has not

been paid.”

     (2)    In section 195 of the WIA (keeping of a register), in subsection (2), the “and” at

the end of paragraph (d) is omitted, and after paragraph (e) there is inserted—

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                  “(f)                    every penalty imposed under section 22A(1) or (2) above and

every notice under section 22A(6) above;”.

 48    Enforcement of certain provisions

     (1)    The WIA is amended as follows.

     (2)    In section 18 (orders for securing compliance with certain provisions)—

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           (a)           in subsection (1)(b), for “has contravened any such condition or

requirement and is likely to do so again” there is substituted “is likely

to contravene any such condition or requirement”;

           (b)           for subsection (4)(a)(ii) there is substituted—

                               “(ii)                                 is likely to contravene any such condition or

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requirement;”.

     (3)    In section 20 (procedure for orders made under section 18), in subsections (1)(c)

and (4)(b), for “twenty-eight” there is substituted “twenty-one”.

     (4)    Subsection (3) does not have effect in relation to—

           (a)           a provisional order which has been made before the commencement of

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that subsection; or

           (b)           a final order in respect of which notice has been given under section

20(1) of the WIA before the commencement of that subsection.

Remuneration and standards of performance

 49    Links between directors’ pay and standards of performance

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After section 35 of the WIA there is inserted—

“Disclosure of arrangements for remuneration

       35A            Remuneration and standards of performance

           (1)           This section applies to any company holding an appointment under

Chapter 1 of this Part.

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           (2)           As soon as reasonably practicable after the end of each financial year of

the company it must make a statement to the Authority—

                  (a)                 disclosing whether or not remuneration has been paid or

become due during that financial year to the directors of the

company as a result of arrangements falling within subsection

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(3) below; and

                  (b)                 where such remuneration has been paid or become due,

describing the arrangements and the remuneration.

           (3)           Arrangements fall within this subsection if they are arrangements for

linking the remuneration of the directors of the company to standards

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Water Bill [HL]
Part 2 — New regulatory arrangements, etc

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of performance in connection with the carrying out by the company of

the functions of a relevant undertaker.

           (4)           A description under subsection (2)(b) above must include in

particular—

                  (a)                 a statement of when the arrangements were made;

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                  (b)                 a description of the standards of performance in question;

                  (c)                 an explanation of the means by which the standards of

performance are assessed; and

                  (d)                 an explanation of how the remuneration was calculated.

           (5)           The statement required by subsection (2) above must also state—

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                  (a)                 whether or not there are in force in respect of the financial year

during which the statement is made arrangements falling

within subsection (3) above; or

                  (b)                 if not, whether the company intends that such arrangements

will be in force at some time during that financial year,

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                                       and if there are, or it is intended that there will be, such arrangements

in force the statement must describe those arrangements.

           (6)           A description under subsection (5) above must—

                  (a)                 include in particular the matters listed in subsection (4)(a), (b)

and (c) above; and

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                  (b)                 where the arrangements described are different from any

arrangements described under subsection (2)(b) above, state the

likely effect of those differences on the remuneration of each

director of the company.

           (7)           The statement required by subsection (2) above must be made to the

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Authority in such manner as may be required by the Authority.

           (8)           The statement required by subsection (2) above—

                  (a)                 must be published by the company making the statement in

such manner as it reasonably considers will secure adequate

publicity for it; and

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                  (b)                 may be published by the Authority in such manner as it may

consider appropriate.

           (9)           The duty of a company under this section applies in respect of any

person who has at any time been a director of the company.

           (10)          In this section—

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                                  “remuneration” in relation to a director of a company—

                        (a)                        means any form of payment, consideration or other

benefit (including pension benefit), paid or due to or in

respect of the director; and

                        (b)                        includes remuneration in respect of any of his services

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while a director of the company;

                                  “standards of performance”, in relation to any company, include

any standards which are—

                        (a)                        set by or under any conditions of the company’s

appointment under Chapter 1 of this Part;

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                        (b)                        contained in or prescribed by regulations made under

section 38(1)(b) or (2) or section 95(1)(b) or (2) below; or

 

 

Water Bill [HL]
Part 2 — New regulatory arrangements, etc

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                        (c)                        set or agreed to by the company.

           (11)          Any requirement imposed by this section shall be treated as a statutory

requirement enforceable under section 18 above by the Authority.”

Miscellaneous

 50    Reasons for decisions

5

After section 195 of the WIA there is inserted—

       “195A                         Reasons for decisions

           (1)           This section applies to the following decisions of the Authority, the

Secretary of State or the Assembly, namely—

                  (a)                 the modification of the conditions of an appointment under

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Chapter 1 of Part 2 of this Act or the variation of the area to

which an appointment relates;

                  (b)                 the modification of the conditions of a licence under Chapter 1A

of that Part;

                  (c)                 the termination of such an appointment or the revocation of

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such a licence;

                  (d)                 the giving of any directions or consent in pursuance of a

condition included in such an appointment by virtue of section

12(1) above or in such a licence by virtue of section 17G(3)(a) or

(b) above;

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                  (e)                 the determination of a question referred in pursuance of a

condition included in such an appointment by virtue of section

12(2) above or in such a licence by virtue of section 17G(3)(c)

above;

                  (f)                 the making of a determination under section 17E or 66D(1)

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above; and

                  (g)                 the making of a final enforcement order, the making or

confirmation of a provisional enforcement order or the

revocation of a final order or of a provisional order which has

been confirmed.

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           (2)           As soon as reasonably practicable after making such a decision the

Authority, the Secretary of State or the Assembly shall publish a notice

stating the reasons for the decision in such manner as it considers

appropriate for the purpose of bringing the matters to which the notice

relates to the attention of persons likely to be interested.

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           (3)           A person publishing a notice under subsection (2) above shall serve a

copy on the company holding the appointment or licence to which the

decision relates.

           (4)           A person preparing a notice under subsection (2) above shall have

regard to the need for excluding, so far as that is practicable, any matter

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which relates to the affairs of a particular individual or body of persons

(corporate or unincorporate), where he considers that publication of

that matter would or might seriously and prejudicially affect the

interests of that individual or body.

           (5)           This section does not apply in relation to a decision of the Authority

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resulting in any provision which the Authority was directed under

 

 

Water Bill [HL]
Part 2 — New regulatory arrangements, etc

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section 195(3) above not to enter in the register required to be kept

under that section.”

The Competition Commission

 51    Specialist members of the Competition Commission

     (1)    In section 104(1) of the Utilities Act 2000 (c. 27) (appointment of members of the

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Competition Commission)—

           (a)           the “or” at the end of paragraph (a) is omitted, and

           (b)           after paragraph (b) there is inserted “; or

                        (c)                           section 12, 14, 16A, 17K or 17P of the Water Industry Act

1991.”.

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     (2)    The persons who are, immediately before the commencement of subsection (1),

members of the Competition Commission by virtue of appointments made

under section 14(8) of the WIA shall continue as members of the Commission

and their appointments shall be treated as having been made under section 104

of the Utilities Act 2000.

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     (3)    Section 14(8) and (8A) of the WIA (which are superseded by this section) shall

cease to have effect.

     (4)    The provision made by this section does not affect any group which has been

selected, before the commencement of subsection (1), to perform functions of

the Commission in relation to any reference under or by virtue of section 14 of

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the WIA.

 52    Determination references under section 12 of the WIA

     (1)    Section 12 of the WIA (determinations under conditions of appointment) is

amended as follows.

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

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           “(3A)              Subsections (4) and (5) of section 14, and sections 14A and 14B, below

apply to references to the Competition Commission under this section

as they apply to references under section 14.

           (3B)              A report of the Competition Commission on a reference under this

section—

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                  (a)                 shall be made to the Authority; and

                  (b)                 shall include definite conclusions on the questions or other

matters comprised in the reference, together with such an

account of their reasons for those conclusions as, in the opinion

of the Competition Commission, is expedient for facilitating a

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proper understanding of those questions or other matters and

of their conclusions,

                                       and subsections (5) and (6) of section 15 below apply to such a report as

they apply to a report on a reference under section 14.”

     (3)    Subsections (3)(b)(i), (4) and (5) shall cease to have effect.

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