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Water Bill [HL]


Water Bill [HL]
Part 3 — Miscellaneous

    99

 

                        (i)                        in respect of each of the twelve years following the

provision of the main, an amount not exceeding the

relevant deficit (if any) for that year on that main; or

                        (ii)                       following provision of the main, a single amount not

exceeding the discounted aggregate deficit on that main;

5

and”.

     (3)    In subsection (6), for the words from “shall be referred” to the end there is

substituted “may be referred to the Authority for determination under section

30A above by either party to the dispute.”.

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

10

           “(7)              In this section “relevant deficit” and “discounted aggregate deficit”

have the meanings given by sections 43 and 43A below, respectively.”

     (5)    The amendments made by subsections (2) to (4) of this section do not apply in

respect of water main requisitions (as defined in section 43(9) of the WIA) for

which notice has been served under section 41(1) of that Act before the

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commencement of the subsection in question.

 89    Water main requisitions: calculation of payments

     (1)    In section 43 of the WIA (calculation of “relevant deficit” for the purposes of

section 42)—

           (a)           in paragraph (b) of subsection (4), after “providing” there is inserted “or

20

procuring the provision of”,

           (b)           for subsection (5) there is substituted—

                  “(5)                    In subsection (4) above the reference to an earlier main, in

relation to the new main, is a reference to any water main

which—

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                        (a)                        has been provided in pursuance of a water main

requisition; or

                        (b)                        has been vested (by virtue of a declaration made under

an agreement under section 51A below) in the water

undertaker,

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                                      in the period of twelve years immediately before the provision

of the new main.”,

           (c)           in subsection (8), in paragraph (b), for “that has already been provided”

there is substituted “in respect of which the conditions referred to in

section 42(1) above have already been satisfied.”

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     (2)    After section 43 of the WIA there is inserted—

       “43A                        Calculation of “discounted aggregate deficit” for the purposes of

section 42

           (1)           For the purposes of section 42 above the discounted aggregate deficit

on a water main is the amount equal to the sum of the estimated

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relevant deficits for each of the twelve years following the provision of

the main, in each case discounted in accordance with subsection (6)

below.

           (2)           The estimated relevant deficit for any year is the amount (if any) by

which the estimated revenue in respect of the water main for that year

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Water Bill [HL]
Part 3 — Miscellaneous

    100

 

would be exceeded by the annual borrowing costs of a loan of the

amount required for the provision of that main.

           (3)           Subsections (2) to (6), (8) and (9) of section 43 above (which relate to the

annual borrowing costs of a loan of the amount required for the

provision of a water main) shall apply for the purposes of this section

5

as they apply for the purposes of that.

           (4)                         Any reference in this section to the estimated revenue in respect of a

water main for any year—

                  (a)                 in relation to premises expected to be connected with the main

and supplied with water by a water undertaker, is a reference to

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so much of the aggregate of any charges expected to be payable

to the undertaker for the provision of services in the course of

that year as would represent charges—

                        (i)                        imposed by the undertaker in relation to those premises,

and

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                        (ii)                       reasonably attributable to the provision of a supply of

water (whether or not for domestic purposes) to those

premises by means of that main; and

                  (b)                 in relation to premises expected to be connected with the main

and supplied with water by a licensed water supplier, is a

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reference to so much of the aggregate of any charges expected

to be made during the course of that year as would be—

                        (i)                        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

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

purpose of the supplier’s supplying water to those

premises.

           (5)           For the purpose of calculating estimated revenue under subsection (4)

above, a thing is expected to be the case if, at the time the calculation is

30

made, it is reasonably likely to occur.

           (6)           The estimated relevant deficit for a year mentioned in subsection (1)

above shall be discounted in order to determine its net present value by

applying such factor, and in accordance with such other provision, as

may be determined by the Authority.

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           (7)           A determination made by the Authority for the purposes of subsection

(6) above—

                  (a)                 may be made in relation to the provision of a particular water

main or in relation to the provision of water mains generally;

and

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                  (b)                 may be revoked at any time except in relation to a water main

in respect of which the conditions referred to in section 42(1)

above have already been satisfied.”

     (3)    Section 44 of the WIA (determination of completion date and route for

requisitioned main) is amended as follows—

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           (a)           in subsection (1), for paragraph (b) there is substituted—

                        “(b)                           the water undertaker has not, before the end of that

period, so laid the water main to be provided as to

enable (as the case may be)—

 

 

Water Bill [HL]
Part 3 — Miscellaneous

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                               (i)                              service pipes to premises in that locality; or

                               (ii)                             a water main which is the subject of an

agreement under section 51A below (“the self-

laid main”),

                                                   to connect with the main at the place or places

5

determined under subsection (3) below.”,

           (b)           in paragraph (b) of subsection (2), for “an arbitrator” there is

substituted “the Authority”,

           (c)           in paragraph (b) of subsection (3)—

                  (i)                 for “an arbitrator” there is substituted “the Authority”,

10

                  (ii)                after “in question” there is inserted “, or (as the case may be) the

self-laid main,”,

           (d)           for subsection (4) there is substituted—

                  “(4)                    A reference for the purposes of subsection (2) or (3) above may

be made to the Authority for determination under section 30A

15

above by either party to the dispute.”,

           (e)           in subsection (5)—

                  (i)                 the words “for any locality” are omitted,

                  (ii)                for paragraph (b) there is substituted—

                               “(b)                                 the day on which the place or places where (as

20

the case may be)—

                                      (i)                                     service pipes to premises in the locality in

question; or

                                      (ii)                                    the self-laid main,

                                                                will connect with the main are determined under

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subsection (3) above.”

     (4)    The amendments made by subsections (1) to (3) of this section do not apply in

respect of water main requisitions (as defined in section 43(9) of the WIA) for

which notice has been served under section 41(1) of that Act before

commencement of the subsection in question.

30

 90    Self-lay and adoption of water mains and service pipes

     (1)    After section 51 of the WIA there is inserted—

“Adoption of water mains and service pipes

       51A            Agreements to adopt water main or service pipe at future date

           (1)           Subject to subsections (2) and (10) below, a water undertaker may agree

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with any person constructing or proposing to construct—

                  (a)                 any water main; or

                  (b)                 any service pipe,

                         that, if the water main or service pipe is constructed in accordance with

the terms of the agreement, the undertaker will, upon completion of the

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work, at some specified date or on the happening of some future event,

declare the water main or (as the case may be) so much of the service

pipe as the undertaker could otherwise, by virtue of sections 45 to 51

above, be required to lay, to be vested in that undertaker.

 

 

Water Bill [HL]
Part 3 — Miscellaneous

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           (2)           Subsection (1) above shall not apply if the water main or (as the case

may be) the service pipe is to be used solely for the purpose of

supplying water otherwise than for domestic purposes.

           (3)           A person constructing or proposing to construct a water main or a

service pipe may make an application in writing to a water undertaker

5

requesting the undertaker to make an agreement under this section.

           (4)           An application under subsection (3) above shall be accompanied and

supplemented by all such information as the undertaker may

reasonably require; but subject to subsection (5) below and without

prejudice to the effect (if any) of any other contravention of the

10

requirements of this section in relation to such an application, a failure

to provide information in pursuance of the obligation to supplement

such an application shall not invalidate the application.

           (5)           Where—

                  (a)                 a person who has made an application to a water undertaker

15

under subsection (3) above has failed to comply with his

obligation under this section to supplement that application

with information required by the undertaker; and

                  (b)                 that requirement was made by the undertaker at such a time

before the end of the period within which the undertaker is

20

required, by virtue of section 51B below, to respond to the

application as gave that person a reasonable opportunity to

provide the required information within that period,

                         the undertaker may delay its response to the application until a

reasonable time after the required information is provided.

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           (6)           In deciding whether or on what terms to grant an application under

subsection (3) above, a water undertaker shall have regard in particular

to any effect or potential effect on the quality of water supplies and to

any increased danger to life or health which it considers may result.

           (7)           The terms of an agreement under subsection (1) above relating to a

30

water main may, in particular, include terms—

                  (a)                 for the provision (at the expense of the person constructing or

proposing to construct the water main) by—

                        (i)                        that person; or

                        (ii)                       the water undertaker,

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                                      of such associated infrastructure at or downstream of the point

of connection with the undertaker’s supply system as it is

necessary to provide in consequence of incorporating the new

water main into that system;

                  (b)                 providing that, if the water main and the associated

40

infrastructure are constructed in accordance with the terms of

the agreement, the undertaker will, in addition to declaring the

water main to be vested in it, declare the associated

infrastructure to be so vested;

                  (c)                 where the undertaker considers that the proposed main is, or is

45

likely to be, needed for the provision of water supply services in

addition to those for which the person is proposing to construct

the main—

                        (i)                        requiring that person to construct the main in a manner

differing, as regards material or size of pipes, depth or

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Water Bill [HL]
Part 3 — Miscellaneous

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otherwise, from the manner in which that person

proposes, or could otherwise be required by the

undertaker, to construct it; and

                        (ii)                       providing for the repayment by the undertaker of any

extra expense reasonably incurred by that person in

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complying with that requirement;

                  (d)                 for the connection of the new water main to the undertaker’s

existing supply system at the point or points specified in the

agreement;

                  (e)                 for any service pipes which the person constructing or

10

proposing to construct the new water main proposes to connect

to that main to be constructed in accordance with the terms of

the agreement and, subject to that, to be vested in the

undertaker at the same time as the main.

           (8)           The terms of an agreement under subsection (1) above relating to a

15

service pipe may, in particular, include terms—

                  (a)                 for the connection of the new service pipe to the undertaker’s

existing supply system at the point or points specified in the

agreement;

                  (b)                 for such requirements of the kind referred to in section 47(2)

20

above as may be applicable to be complied with before

connection takes place.

           (9)           An agreement made under this section by a water undertaker shall be

enforceable against the undertaker by the owner or occupier for the

time being of any premises connected or to be connected with the water

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main or service pipe to which it relates.

           (10)          A water undertaker shall not make an agreement under this section

with respect to a water main or a service pipe situated within the area

of another water undertaker, until either—

                  (a)                 that other undertaker has consented in writing to the making of

30

the agreement; or

                  (b)                 the Secretary of State, on an application made to him, has

dispensed with the necessity for such consent, either

unconditionally or subject to such conditions as he may think fit

to impose.

35

           (11)          Where a person constructs a water main or service pipe which does not

belong to or vest in a water undertaker, no water undertaker may

permit that water main or service pipe to be connected with its supply

system.

           (12)                        The prohibition imposed on a water undertaker by subsection (11)

40

above shall be enforceable under section 18 above by the Authority.

       51B            Appeals with respect to adoption

           (1)           Subject to section 51A(5) above, a person constructing or proposing to

construct a water main or service pipe may appeal to the Authority

where the water undertaker—

45

                  (a)                 has refused an application under section 51A above;

                  (b)                 has offered to grant such an application on terms to which that

person objects; or

 

 

Water Bill [HL]
Part 3 — Miscellaneous

    104

 

                  (c)                 has failed, before the end of two months from the making of

such an application, either to refuse the application or to give

notice to the applicant of the terms on which it is prepared to

grant the application.

           (2)           On the hearing of an appeal under this section, the Authority may—

5

                  (a)                 uphold the refusal of the undertaker to grant the application or

to modify the terms offered; or

                  (b)                 on behalf of the undertaker, refuse the application or enter into

any agreement into which the undertaker might have entered

on the application.

10

           (3)           Where the Authority makes an agreement under subsection (2)(b)

above on behalf of a water undertaker, it may do so on such terms as it

considers reasonable or, as the case may be, on the terms offered by the

undertaker subject to such modifications as it considers appropriate for

ensuring that the terms of the agreement are reasonable.

15

           (4)           An agreement entered into on behalf of a water undertaker under

subsection (2)(b) above shall be deemed, for the purposes of this Act, to

have been entered into under section 51A above.

           (5)           In deciding on an appeal under this section, the Authority may include

such incidental, supplemental and consequential provision (including

20

provision requiring either party to pay a sum in respect of the costs or

expenses incurred by the Authority) as it thinks fit, and any such

provision as to costs or expenses shall be enforceable as if it were a

judgment of a county court.

       51C            Financial conditions of compliance

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           (1)           This section applies where an agreement is or is to be entered into

under section 51A above in relation to a water main (“the adopted

main”) by, or on behalf of, a water undertaker and a person

constructing or proposing to construct that water main.

           (2)           Where this section applies, the water undertaker may, as a condition of

30

the undertaker’s compliance with the agreement, require that person to

pay to it the costs mentioned in subsection (3) below.

           (3)           The costs are those reasonably incurred by the undertaker in

connection with the adopted main equivalent to the costs referred to in

section 43(4)(a) and (b) above, as if references there (and in section

35

43(5)) to the provision of the new main were references to the

incorporation of the adopted main into the undertaker’s supply

system.

           (4)           For the purposes of any payment required to be made by virtue of

subsection (2) above, the water undertaker may require the person to

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provide such security as it may reasonably request, and the provisions

of subsections (4) and (5) of section 42 above shall apply to any security

so required as they apply to security required under that section.

           (5)           Where this section applies, the water undertaker shall pay to the person

referred to in subsection (1) above, upon declaring the water main to be

45

vested in the undertaker, a sum equal to the discounted offset amount.

 

 

Water Bill [HL]
Part 3 — Miscellaneous

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           (6)           For the purposes of subsection (5) above, the discounted offset amount

is the sum of the estimated offsets for each of the twelve years following

the vesting in the undertaker of the water main, in each case discounted

in accordance with subsection (9) below.

           (7)           The estimated offset for any year is the lesser of—

5

                  (a)                 the estimated revenue (if any) in respect of the adopted main for

that year; and

                  (b)                 the annual borrowing costs of a loan of the amount required for

the provision of that main.

           (8)           The amounts referred to in paragraphs (a) and (b) of subsection (7)

10

above shall be calculated in accordance with the provisions of

subsections (3) to (5) of section 43A above as if the adopted main had

been provided in pursuance of a water main requisition (as defined in

section 43 above).

           (9)           The estimated offset for a year shall be discounted in order to determine

15

its net present value by applying such factor, and in accordance with

such other provision, as may be determined by the Authority.

           (10)          A determination made by the Authority for the purposes of subsection

(9) above—

                  (a)                 may be made in relation to a particular water main or in relation

20

to water mains generally; and

                  (b)                 may be revoked at any time except in relation to an adopted

main in respect of which the agreement referred to in subsection

(1) above has already been made.

           (11)          Any dispute between the water undertaker and the other person as to

25

the payments required to be made or the security required to be

provided by virtue of this section may be referred to the Authority for

determination under section 30A above by either party to the dispute.

       51D            Sections 51A to 51C: supplementary

           (1)           For the purposes of sections 51A to 51C above, the definition of “water

30

main” in section 219(1) below shall be treated as if the words “not being

a pipe for the time being vested in a person other than the undertaker”

were omitted.

           (2)           In sections 51A to 51C above, references to so much of the service pipe

as the undertaker could otherwise, by virtue of sections 45 to 51 above,

35

be required to lay shall be construed disregarding section 46(8) above.

           (3)           In this Act, references to vesting or the making of a declaration of

vesting with respect to a service pipe refer to so much of the service

pipe as is mentioned in subsection (2) above.”

     (2)    In section 45 of the WIA (duty to make connections with main), after subsection

40

(1) there is inserted—

           “(1A)              In relation to service pipes which do not belong to or fall to be laid by

the undertaker—

                  (a)                 subsection (1) above is subject to section 51A(11) below; and

                  (b)                 any such service pipe which is to vest in the undertaker by

45

virtue of an agreement under section 51A shall be connected to

 

 

 
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