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Water Bill [HL]


Water Bill [HL]
Schedule 7 — Minor and consequential amendments
Part 2 — New regulatory arrangements, etc

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              (b)             in paragraph 10, for “Director General of Water Services” there is

substituted “Water Services Regulation Authority”.

Competition and Service (Utilities) Act 1992 (c. 43)

  26       Section 50 of the Competition and Service (Utilities) Act 1992 (which amends

section 2 of the WIA) shall cease to have effect.

5

Coal Industry Act 1994 (c. 21)

  27       In section 59 (information to be kept confidential by the Authority), in

subsection (4), after paragraph (n) there is inserted—

                    “(o)                      the Water Act 2003.”

Competition Act 1998 (c. 41)

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  28      (1)      The Competition Act 1998 is amended as follows.

          (2)      In section 54 (regulators), in subsection (1), for paragraph (d) there is

substituted—

                    “(d)                      the Water Services Regulation Authority;”.

          (3)      In Schedule 7 (the Competition Commission), in paragraph 2(1)(d), sub-

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paragraph (i) is omitted.

          (4)      In Schedule 13 (transitional provisions and savings), in paragraph 35(2)(e),

for “Director General of Water Services” there is substituted “Water Services

Regulation Authority”.

Postal Services Act 2000 (c. 26)

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  29       In Schedule 7 to the Postal Services Act 2000 (disclosure of information), in

paragraph 3—

              (a)             in sub-paragraph (2), for paragraph (j) there is substituted—

                                   “(j)                                      the Water Services Regulation Authority,”,

              (b)             in sub-paragraph (3), after paragraph (gg) there is inserted—

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                                   “(gga)                                      the Water Act 2003,”.

Utilities Act 2000 (c. 27)

  30       In section 105 of the Utilities Act 2000 (general restrictions on disclosure of

information)—

              (a)             in subsection (5), for paragraph (e) there is substituted—

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                           “(e)                             the Water Services Regulation Authority;”,

              (b)             in subsection (6)(l), at the end there is inserted “or the Water Act

2003”.

Transport Act 2000 (c. 38)

  31       In Schedule 9 to the Transport Act 2000 (air traffic: information), in

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paragraph 3—

              (a)             in sub-paragraph (2), for paragraph (g) there is substituted—

                                   “(g)                                      the Water Services Regulation Authority;”,

 

 

Water Bill [HL]
Schedule 7 — Minor and consequential amendments
Part 3 — Miscellaneous

    187

 

              (b)             in sub-paragraph (3), after paragraph (r) there is inserted—

                             “(ra)                               the Water Act 2003;”.

Enterprise Act 2002 (c. 40)

  32      (1)      The Enterprise Act 2002 is amended as follows.

          (2)      In section 136 (investigations and reports on market investigation

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references), in each of subsections (7)(c) and (8), for “the Director General of

Water Services” there is substituted “the Water Services Regulation

Authority”.

          (3)      In section 168 (regulated markets)—

              (a)             in subsection (4)(f), for “the Director General of Water Services” there

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is substituted “the Water Services Regulation Authority”,

              (b)             in subsection (5), for paragraph (e) there is substituted—

                           “(e)                             the Water Services Regulation Authority;”.

          (4)      In Schedule 15 (enactments conferring functions in relation to which a public

authority may disclose information), at the end there is inserted the

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following entry—

               “Water Act 2003 (c.  ).”

Part 3

Miscellaneous

Metropolis Water Act 1852 (c. 84)

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  33       Section 1 of the Metropolis Water Act 1852 (restriction on sources of supply

of water to London) shall cease to have effect.

Water Industry Act 1991 (c. 56)

  34       In section 111 of the WIA (restrictions on use of public sewers)—

              (a)             in paragraph (b) of subsection (1), for “one hundred and ten degrees

25

Fahrenheit” there is substituted “forty-three degrees Celsius”,

              (b)             in subsection (5), for “seventy-three degrees Fahrenheit” there is

substituted “twenty-three degrees Celsius”.

Land Drainage Act 1991 (c. 59)

  35      (1)      The Land Drainage Act 1991 is amended as follows.

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          (2)      In section 16 (which provides for the exercise of certain local authority

powers by the Environment Agency), in subsection (2), for “under

subsection (3) above” there is substituted “in exercising those powers”.

          (3)      In section 55 (powers of internal drainage boards to borrow), in subsection

(1)(a), for “in the execution of this Act” there is substituted “in the exercise

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or performance of any power or duty under this Act or the Water Resources

Act 1991”.

 

 

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

    188

 

Schedule 8

Section 98(2)

 

Minor and consequential amendments: licensing of water suppliers etc

Water Act 1989 (c. 15)

  1       (1)               Section 174 of the Water Act 1989 (general restrictions on disclosure of

information) is amended as follows.

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          (2)                        In paragraph (b) of subsection (2), for “or a sewerage undertaker” there is

substituted “, sewerage undertaker or company holding a licence under

Chapter 1A of Part 2 of the Water Industry Act 1991”.

          (3)                        In paragraph (c) of that subsection, for “203(1) or (2)” there is substituted

“203(1), (1A), (2) or (2A)”.

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          (4)               In subsection (6)(a), after “sewerage undertaker” there is inserted “, or with

the carrying on by a company holding a licence under Chapter 1A of Part 2

of the Water Industry Act 1991 of activities under its licence,”.

Water Industry Act 1991 (c. 56)

  2        The WIA is amended as follows.

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  3        In section 6 (appointment of relevant undertakers), after subsection (5) there

is inserted—

              “(5A)                 A company shall not be appointed to be a relevant undertaker if it is

a licensed water supplier.”

  4       (1)      Section 18 (orders for securing compliance) is amended as follows.

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          (2)      In subsection (1)—

              (a)             after “this Part” there is inserted “or a licence under Chapter 1A of

this Part”; and

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

          (3)      After that subsection there is inserted—

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              “(1A)                Subject to subsection (2) and sections 19 and 20 below, where—

                    (a)                   in the case of any company holding an appointment under

Chapter 1 of this Part, the Secretary of State or the Authority

is satisfied that the company—

                           (i)                          is causing or contributing to a contravention of a

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condition or requirement such as is referred to in

paragraph (a)(i) or (ii) of subsection (1) above by a

company holding a licence under Chapter 1A of this

Part; or

                           (ii)                         is likely to cause or contribute to any such

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contravention; or

                    (b)                   in the case of any company holding a licence under Chapter

1A of this Part, the Secretary of State or the Authority is

satisfied that the company—

                           (i)                          is causing or contributing to a contravention of a

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condition or requirement such as is referred to in

paragraph (a)(i) or (ii) of subsection (1) above by a

company holding an appointment under Chapter 1 of

this Part; or

 

 

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

    189

 

                           (ii)                         is likely to cause or contribute to any such

contravention,

                                          he or it shall by a final enforcement order make such

provision as is requisite for the purpose of securing

compliance with that condition or requirement.”

5

          (4)      In subsection (2)—

              (a)             after “this Part” there is inserted “or a licence under Chapter 1A of

this Part”; and

              (b)             in paragraph (a), after “subsection (1)” there is inserted “or (1A)”.

          (5)      In subsection (4), after paragraph (a)(ii) there is inserted “or

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                           (iii)                             is causing or contributing to a contravention of any

such condition or requirement; or

                           (iv)                             is likely to cause or contribute to any such

contravention;”.

          (6)      In subsection (6)—

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              (a)             in paragraph (a)—

                    (i)                   after “this Part” there is inserted “or a licence under Chapter

1A of this Part”; and

                    (ii)                  in sub-paragraph (i), after “appointment” there is inserted “or

licence”; and

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              (b)             in paragraph (b), after “this Part” there is inserted “or of a licence

under Chapter 1A of this Part”.

          (7)      For subsection (8) there is substituted—

              “(8)                Where any act or omission—

                    (a)                   constitutes a contravention of a condition of an appointment

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under Chapter 1 of this Part or of a condition of a licence

under Chapter 1A of this Part or of a statutory or other

requirement enforceable under this section; or

                    (b)                   causes or contributes to a contravention of any such

condition or requirement,

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                              the only remedies for, or for causing or contributing to, that

contravention (apart from those available by virtue of this section)

shall be those for which express provision is made by or under any

enactment and those that are available in respect of that act or

omission otherwise than by virtue of its constituting, or causing or

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contributing to, such a contravention.”

  5       (1)      Section 19 (exceptions to duty to enforce) is amended as follows.

          (2)      In subsection (1), after paragraph (a) there is inserted—

                    “(aa)                      that the extent to which the company caused or contributed

to, or was likely to cause or contribute to, a contravention was

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trivial;”.

          (3)      In subsection (3), after “paragraph (a),” there is inserted “(aa),”.

  6       (1)      Section 20 (procedure for enforcement orders) is amended as follows.

          (2)      In subsection (1)—

              (a)             after “final enforcement order” there is inserted “under section 18(1)

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above”; and

 

 

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

    190

 

              (b)             after “provisional enforcement order” there is inserted “in a case in

which section 18(4)(a)(i) or (ii) above applies”.

          (3)      After that subsection there is inserted—

              “(1A)                Before making a final enforcement order under section 18(1A) above

or confirming a provisional enforcement order in a case in which

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section 18(4)(a)(iii) or (iv) above applies, the Secretary of State or the

Authority shall give notice—

                    (a)                   stating that he or it proposes to make or confirm the order

and setting out the effect of the order;

                    (b)                   setting out—

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                           (i)                          the condition or requirement for the purposes of

securing compliance with which the order is to be

made or confirmed;

                           (ii)                         the acts or omissions which, in his or its opinion,

cause or contribute to or would cause or contribute to

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the contravention of that condition or requirement;

and

                           (iii)                        the other facts which, in his or its opinion, justify the

making or confirmation of the order; and

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

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from the date of publication of the notice) within which

representations or objections to the proposed order or

proposed confirmation may be made,

                              and shall consider any representations or objections which are duly

made and not withdrawn.”

25

          (4)      In subsection (2), after “subsection (1)” there is inserted “or (1A)”.

  7        In section 22 (effect of enforcement order), in subsection (3), after “section

68(1)(a)” there is inserted “or (1A)(a)”.

  8       (1)      Section 23 (meaning and effect of special administration order) is amended

as follows.

30

          (2)      In subsection (1), after “this Part” there is inserted “or which is a qualifying

licensed water supplier”.

          (3)      In subsection (2), after “in relation to any company” there is inserted

“holding an appointment under Chapter 1 of this Part”.

          (4)      After that subsection, there is inserted—

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              “(2A)                 The purposes of a special administration order made in relation to

any company which is a qualifying licensed water supplier shall

be—

                    (a)                   the transfer to another company or companies, as a going

concern, of so much of the company’s undertaking as it is

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necessary to transfer in order to ensure that activities relating

to the introduction or introductions of water mentioned in

subsection (6)(b) below may be properly carried on; and

                    (b)                   the carrying on of those activities pending the making of the

transfer.”

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          (5)      In subsection (4), for the words from “a company” to the end there is

 

 

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

    191

 

substituted—

                    “(a)                      a company is replaced by another as a relevant undertaker

without an appointment or variation under Chapter 1 of this

Part; or

                    (b)                      a company carries on activities relating to the introduction or

5

introductions of water mentioned in subsection (6)(b) below

formerly carried on by another company,

                   in pursuance of a special administration order.”

          (6)      After subsection (5), there is inserted—

              “(6)                 For the purposes of this section, sections 24 to 26 below and Schedule

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2 to this Act, a licensed water supplier is a qualifying licensed water

supplier if—

                    (a)                   it is the holder of a combined licence (within the meaning of

Chapter 1A of this Part); and

                    (b)                   the introduction of water by it which is permitted under

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section 66B or 66C below is designated as a strategic supply

under section 66G below or the introductions of water by it

which are so permitted are designated as a collective strategic

supply under section 66H below.”

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

20

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

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

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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

company, that Court may make a special administration order in

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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

licence”,

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              (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

contravention by a water undertaker of any

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principal duty; and

                                 (ii)                               that action is serious enough to make it

inappropriate for the company to continue to

hold its licence;”,

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

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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,”.

 

 

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

    192

 

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

              “(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;

5

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

supplier, any condition of its licence or any statutory

requirement imposed on it in consequence of its licence.”

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

up)—

10

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

supplier”; and

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

qualifying licensed water supplier”.

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

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

water supplier”.

  12      (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

20

substituted—

                    “(a)                      water undertakers or sewerage undertakers carry out

functions; and

                    (b)                      licensed water suppliers carry on activities authorised by

their licences.”

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          (3)                        In subsection (2)—

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

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

Chapter 1A of this Part of the activities authorised by

their licences; or”; and

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

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

          (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

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

any such licence.”

  13      (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

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

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

customers,”.

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

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

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

mentioned in that subsection to their customers.

 

 

 
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