SCHEDULE 7 continued PART 2 continued
35 In Schedule 9 to the Transport Act 2000 (air traffic: information), in paragraph 3—
(a) in sub-paragraph (2), for paragraph (g) there is substituted—
“(g) the Water Services Regulation Authority;”,
(b) in sub-paragraph (3), after paragraph (ra) there is inserted—
“(rb) the Water Act 2003;”.
36 (1) The Enterprise Act 2002 is amended as follows.
(2) In section 136 (investigations and reports on market investigation 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 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 following entry—
“Water Act 2003 (c. 37).”
37 Section 1 of the Metropolis Water Act 1852 (restriction on sources of supply of water to London) shall cease to have effect.
38 In Schedule 1 to the Reservoirs Act 1975 (index of general definitions), the entry for “Local authority” is omitted.
39 (1) The WIA is amended as follows.
(2) In section 111 (restrictions on use of public sewers)—
(a) in paragraph (b) of subsection (1), for “one hundred and ten degrees Fahrenheit” there is substituted “forty-three degrees Celsius”,
(b) in subsection (5), for “seventy-three degrees Fahrenheit” there is substituted “twenty-three degrees Celsius”.
(3) In section 213(1) (powers to make regulations), after “or 17D(8)” (which is inserted by paragraph 49(2) of Schedule 8) there is inserted “or 105A”.
40 (1) The Land Drainage Act 1991 is amended as follows.
(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 or performance of any power or duty under this Act or the Water Resources Act 1991”.
41 In Schedule 1 to the Health Authorities Act 1995 (amendment of enactments), paragraph 120 is omitted.
42 In section 101 of the Environment Act 1995 (grants in connection with drainage works), subsection (1) is omitted.
Section 101(1)
1 (1) Section 174 of the Water Act 1989 (general restrictions on disclosure of information) is amended as follows.
(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)”.
(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,”.
2 The WIA is amended as follows.
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.
(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—
“(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 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 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 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
(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.”
(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
(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)—
(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
(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 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,
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 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 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) above”; and
(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 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—
(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 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 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.”
(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.
(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—
“(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 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.”
(5) In subsection (4), for the words from “a company” to the end there is 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 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 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 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 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 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 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”,
(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 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 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—
“(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 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)—
(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 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 substituted—
“(a) water undertakers or sewerage undertakers carry out functions; and
(b) licensed water suppliers carry on activities authorised by their licences.”
(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
(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 (within the meanings of Chapter 1A of this Part); or
(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 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, if the Authority so directs, pass on the information about the matters mentioned in that subsection to their customers.
(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”.
14 (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”.
(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 much of the aggregate of any charges payable to the 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 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 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 the purpose of the supplier supplying water to those premises.”
15 (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,”.
(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
(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—
“(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
(b) the time specified in that notice has passed.”
16 (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 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 subsection (2) of section 17D above is less than the quantity specified in that subsection; and
(c) paragraph (a) or (b) of subsection (1) above applies.”
(3) In subsection (8), after “63” there is inserted “and 63AB”.
17 After section 63 there is inserted—
(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 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.
(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 holiday in England and Wales under the Banking and Financial Dealings Act 1971.
(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—
(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
(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.
(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 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
(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.
(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 (8) below, the supply shall be made 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),
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 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 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) 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.
(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 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.”
18 (1) Section 68 (water quality) is amended as follows.
(2) In subsection (1)—
(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”,
(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 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 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 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,
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”.
(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
(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 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 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 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.