(11) Any requirement imposed by this section shall be treated as a statutory
requirement enforceable under section 18 above by the Authority.”
50 Reasons for decisions
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
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
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
(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)
(f) the making of a determination under section 17E or 66D(1)
(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
(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.
(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
(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
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
resulting in any provision which the Authority was directed under
(5) 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
(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
(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.
(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
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—
“(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
(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
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.
53 Conditions of appointments under the WIA
(1) The WIA is amended as follows.
(2) In section 14(5) (modification references to the Competition Commission)—
(a) after “this section” there is inserted “or in carrying out functions under
section 16A below”,
(b) after “the investigation” there is inserted “or the carrying out of those
(c) after “such investigation” there is inserted “or such functions”.
(3) In section 16 (modification of conditions of appointment following report of
Competition Commission), after subsection (4) there is inserted—
“(4A) After considering any representations or objections made in response
to proposals set out in a notice under subsection (3) above, the
Authority shall give notice to the Competition Commission—
(a) setting out the modifications it proposes to make to remedy or
prevent the adverse effects specified in the report; and
(b) stating the reasons for making the modifications.
(4B) The Authority shall include with the notice under subsection (4A)
above a copy of any representations or objections received in relation to
the notice under subsection (3) above.
(4C) If the period of four weeks from the date on which the notice under
subsection (4A) above is given elapses without a direction under
section 16A(1)(a) below having been given to it, the Authority shall—
(a) make the modifications set out in the notice; or
(b) if a direction under section 16A(1)(b) below has been given,
make the modifications which are not specified in the
(4) After section 16 there is inserted—
“16A Commission’s power of veto following report
(1) The Competition Commission (in this section referred to as “the
Commission”) may, within the period of four weeks after the date on
which it is given a notice under section 16(4A) above, direct the
(a) not to make the modifications set out in that notice; or
(b) not to make such of the modifications as may be specified in the
and the Authority shall comply with any such direction.
(2) The Secretary of State may, within the period of four weeks after the
date on which the Commission is given a notice under section 16(4A)
above and on the application of the Commission, direct that the period
for giving a direction under subsection (1) above (and, accordingly, the
period mentioned in section 16(4C) above) shall be extended by
(3) The power to give a direction under subsection (1) above may only be
exercised in respect of such of the modifications set out in the notice
under section 16(4A)(a) above as appear to the Commission not to be
(3) the modifications which are requisite for the purpose of remedying or
preventing all or any of the adverse effects specified in the report as
effects which could be remedied or prevented by modifications.
(4) If the Commission gives a direction under subsection (1) above, it—
(a) shall give notice setting out the modifications proposed by the
Authority, the terms of the direction and the reasons for giving
(b) shall itself make such modifications as appear to it to be
requisite for the purpose of remedying or preventing—
(i) if the direction was given under subsection (1)(a) above,
the adverse effects specified in the report as effects
which could be remedied or prevented by
(ii) if the direction was given under subsection (1)(b) above,
such of those adverse effects as are not remedied or
prevented by the modifications made by the Authority
under section 16(4C)(b) above.
(5) In exercising its power under subsection (4)(b) above, the Commission
shall have regard to the matters to which the Authority is required to
have regard when determining the conditions of a company’s
(6) Before making modifications under subsection (4)(b) above the
Commission shall give notice—
(a) stating that it proposes to make the modifications and setting
(b) stating the reason why it proposes to make them;
(c) specifying the period (not being less than twenty-eight days
from the date of publication of the notice) within which
representations or objections with respect to the proposed
modifications may be made,
and shall consider any representations or objections which are duly
made and not withdrawn.
(7) A notice under subsection (4)(a) or (6) above shall be given—
(a) by publishing the notice in such manner as the Commission
considers appropriate for the purpose of bringing it to the
attention of persons likely to be affected by the making of the
(b) by serving a copy on the Authority and the company whose
conditions of appointment it is proposed should be modified.
(8) The Commission may not make any modification under this section
which the Authority could not make under section 16 above.
(9) After making modifications under this section the Commission shall
publish a notice stating that the modifications have been made and
setting them out, with the reasons for making them.
(10) This section does not apply to the modification of the conditions of a
company’s appointment following a report of the Commission made
before the commencement of section 53 of the Water Act 2003.