Part 1 Water Industry Commissioner and Customer Panels

1 Water Industry Commissioner for Scotland

(1) There is to continue to be a Water Industry Commissioner for Scotland (referred to in this Act as the “Commissioner”).

(2) The Commissioner has the general function of promoting the interests of customers of Scottish Water in relation to the provision of services by it in the exercise of its core functions.

(3) The Scottish Ministers may, after consulting the Commissioner, give the Commissioner directions of a general or specific character as to the exercise of the Commissioner’s functions; and the Commissioner must comply with any such direction.

(4) Part 1 of schedule 1 makes further provision about the Commissioner.

2 Water Customer Consultation Panels

(1) The Scottish Ministers shall by order establish panels of individuals to be known as Water Customer Consultation Panels (each referred to in this Part as a “Customer Panel”).

(2) An order under subsection (1) must, in relation to each Customer Panel established by it, specify, or make provision for determining—

(a) the area for which the Panel is established, and

(b) the number of members of the Panel.

(3) Each Customer Panel is to have the general function of representing the views and interests of the customers of Scottish Water in the Panel’s area in relation to the provision of services by Scottish Water in the exercise of its core functions.

(4) A Customer Panel must—

(a) publish reports on any matter it considers relevant to the interests of those customers in relation to such provision,

(b) make such recommendations as it considers appropriate to the Commissioner as to the promotion of the interests of those customers in relation to such provision, either generally or in relation to any specific matter.

(5) In exercising functions in relation to Scottish Water, the Commissioner must have regard to—

(a) any representations made to the Commissioner by a Customer Panel,

(b) any reports published under subsection (4)(a), and

(c) any recommendations made under subsection (4)(b).

(6) Part 2 of schedule 1 makes further provision about the Customer Panels.

3 Functions of the Commissioner

(1) The Commissioner must investigate any complaint made to the Commissioner or a Customer Panel by a current, potential or former customer of Scottish Water as respects any of its core functions.

(2) A Customer Panel must refer to the Commissioner any such complaint which is made to it.

(3) The Commissioner need not investigate a complaint under subsection (1) if—

(a) the complainer has not pursued the complaint with Scottish Water, or

(b) it appears to the Commissioner that the complaint is vexatious or frivolous.

(4) The Commissioner may, on behalf of the complainer in a complaint investigated under subsection (1), make representations to Scottish Water about any matter—

(a) to which the complaint relates, or

(b) which appears to the Commissioner to be relevant to the subject matter of the complaint.

(5) Where the Commissioner investigates a complaint referred by a Customer Panel under subsection (2), or decides not to investigate such a complaint, the Commissioner must send to the Panel a report of the investigation or, as the case may be, a statement of the reasons for not investigating the complaint.

(6) The Commissioner is to advise the Scottish Ministers on any matter which appears to the Commissioner or to them to relate to—

(a) the standard of service provided by Scottish Water to its customers, or

(b) the manner in which it conducts its relations with its customers or potential or former customers,

in the exercise of its core functions.

(7) The Commissioner has power to do anything which is calculated to facilitate, or is incidental or conducive to, the exercise of the Commissioner’s functions.

4 Power of the Commissioner to require information

(1) Scottish Water must, on being requested to do so by the Commissioner, provide the Commissioner with such information held by it as the Commissioner may reasonably seek in the exercise of the Commissioner’s functions.

(2) Where Scottish Water and the Commissioner cannot agree as to whether information is sought reasonably, either of them may refer the matter to the Scottish Ministers, whose decision is final.

5 Annual reports by, and information from, the Commissioner

(1) The Commissioner must—

(a) as soon as practicable after the end of each financial year, submit to the Scottish Ministers, and publish, a report on the exercise of the Commissioner’s functions during that year, and

(b) provide the Scottish Ministers with such information regarding the exercise of those functions as they may require.

(2) A report under subsection (1)(a) must include a summary of—

(a) action taken by the Commissioner during the year to which the report relates in response to such representations, reports and recommendations as are mentioned in section 2(5), and

(b) where the Commissioner has decided during that year not to take any action in response to any such representation, report or recommendation, the reasons for that decision.

(3) A report under subsection (1)(a) must set out any directions under section 1 which have been given to the Commissioner during the period to which the report relates.

6 Funding of the Commissioner

(1) The Scottish Ministers may make grants to the Commissioner in respect of the Commissioner’s expenses.

(2) Scottish Water must make to the Commissioner, in respect of the Commissioner’s expenses, payments of such amounts, and at such times, as the Scottish Ministers may direct.

Part 2 Drinking Water Quality Regulator

Appointment

7 Drinking Water Quality Regulator for Scotland

(1) The Scottish Ministers may appoint a person to be known as the Drinking Water Quality Regulator for Scotland (in this Part referred to as the “Regulator”) to exercise the functions conferred on the Regulator by this Part.

(2) The Regulator is to have the general functions of—

(a) seeking to ensure that the drinking water quality duties imposed on a public water supplier are complied with, and

(b) supervising the enforcement by local authorities of the drinking water quality duties which it is their responsibility to enforce.

(3) Any person authorised by the Regulator for the purpose (an “authorised person”) may exercise, on behalf of the Regulator, any function of the Regulator.

(4) In relation to the exercise by an authorised person of a function of the Regulator which that person is authorised to exercise, references in this Part to the Regulator are, so far as necessary, to be construed as, or as including, references to the authorised person.

(5) An authorisation given for the purposes of subsection (3) does not prevent the Regulator from exercising any function to which the authorisation relates.

(6) The Scottish Ministers may, after consulting the Regulator, give the Regulator directions of a general or specific character as to the exercise of the Regulator’s functions; and the Regulator must comply with any such direction.

(7) In this Part—

• “drinking water quality duty” means a duty in relation to the quality of water imposed on a water supplier by, under or by virtue of—

  (a)

  Part VIA of the 1980 Act,

  (b)

  this Act, or

  (c)

  such other enactment relating to the quality of water supplied by a water supplier as the Scottish Ministers may by order specify,

• “public water supplier” means Scottish Water.

Public water suppliers: general powers of Regulator

8 Power to obtain information

(1) The Regulator may serve on a person a notice requiring the person—

(a) to provide the Regulator, or a person authorised by the Regulator, at a time and place and in the form and manner specified in the notice, with such information relating to the quality of water supplied by a public water supplier as may be specified or described in the notice, or

(b) to produce to the Regulator, or to a person authorised by the Regulator, at a time and a place specified in the notice, any documents relating to that matter which are specified or described in the notice and are in that person’s custody or under that person’s control.

(2) A notice under subsection (1) may be served on—

(a) the public water supplier,

(b) an officer or employee of the public water supplier,

(c) any other person whom the Regulator has reason to believe is or may be in possession of relevant information or documents.

(3) Nothing in this section authorises the Regulator to require the disclosure of anything which a person would be entitled to refuse to disclose on grounds of confidentiality in proceedings in the Court of Session.

(4) References in this section to a document are to anything in which information of any description is recorded; and in relation to a document in which information is recorded otherwise than in legible form, references to producing it are to producing it in legible form.

(5) Where by virtue of this section documents are produced to any person, that person may take copies of or make extracts from them.

(6) A person who—

(a) refuses or fails, without reasonable excuse, to do anything required of that person by a notice under subsection (1), or

(b) intentionally alters, suppresses or destroys a document which that person has been required by such a notice to produce,

is guilty of an offence.

(7) A person guilty of an offence under subsection (6) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

9 Powers of entry, inspection etc.

(1) For the purpose of establishing whether any drinking water quality duty to which a public water supplier is subject has been, is being or is likely to be complied with, the Regulator may exercise the powers specified in subsection (2).

(2) Those powers are—

(a) power to enter—

(i) any premises of the water supplier,

(ii) any premises to which a supply of water is provided by the water supplier,

(iii) any premises of any other person,

for the purpose of exercising any of the powers specified in paragraphs (b) to (d),

(b) power to carry out such inspections, measurements and tests on those premises or of substances, articles or documents found there as the Regulator thinks necessary,

(c) for the purpose of carrying out such inspections, measurements and tests as the Regulator thinks necessary, power to take away from those premises substances, articles or documents found there,

(d) power to take away from those premises such samples of water, land, substances or articles as the Regulator thinks necessary.

(3) The powers specified in subsection (2) must not be exercised in relation to premises referred to in paragraph (a)(iii) of that subsection unless the Regulator is satisfied that the exercise of those powers in relation to the premises referred to in paragraph (a)(i) and (ii) of that subsection would be insufficient for the purpose specified in subsection (1).

(4) The owner and occupier of any premises in relation to which the Regulator exercises the powers specified in subsection (2) and any person on such premises when those powers are being exercised must—

(a) give the Regulator such assistance, and

(b) provide the Regulator with such information,

as the Regulator may reasonably require.

(5) A person who—

(a) refuses or fails, without reasonable excuse, to comply with a requirement made under subsection (4), or

(b) intentionally obstructs a person acting in the exercise of any power conferred by subsection (1),

is guilty of an offence.

(6) A person guilty of an offence under subsection (5) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

Enforcement of duties of public water suppliers

10 Enforcement notices

(1) Where the Regulator reasonably believes (whether or not following the exercise of the Regulator’s powers under section 9)—

(a) that a public water supplier has contravened any drinking water quality duty and the contravention is likely to recur, or

(b) that a public water supplier is contravening any drinking water quality duty and the contravention is likely to continue or to recur or both,

and (in either case) that the water supplier is not taking appropriate steps for the purpose of rectifying the contravention or (as the case may be) preventing its recurrence, the Regulator may serve on the water supplier an enforcement notice.

(2) In considering whether to serve an enforcement notice the Regulator may consult—

(a) the local authority for any area affected by the contravention, and

(b) the Health Board for any such area.

(3) An enforcement notice must specify—

(a) the contravention to which it relates,

(b) the Regulator’s reasons for believing (as the case may be) that the contravention—

(i) has occurred and is likely to recur, or

(ii) is occurring and is likely to continue or to recur or both,

(c) the date by which the water supplier is required to rectify the contravention or (as the case may be) take steps to prevent its recurrence,

(d) any particular steps which the Regulator requires the water supplier to take for that purpose, and

(e) the date on which the notice is to take effect.

(4) An enforcement notice may specify different dates by which different steps specified under subsection (3)(d) must be completed.

(5) The date referred to in subsection (3)(e) must be no earlier than the day following the last day on which an appeal may be brought under section 11(2).

(6) Before serving an enforcement notice on a public water supplier under subsection (1), the Regulator must serve a copy of the proposed notice on the water supplier and specify a period, which must expire no less than 7 days and no more than 28 days from the date of service of the notice, within which the water supplier may make representations to the Regulator about the proposed notice.

(7) The Regulator must take into account any representations in relation to the proposed enforcement notice duly made by the water supplier and may adjust the notice in light of those representations.

11 Enforcement notices: further provisions

(1) The Regulator must—

(a) send a copy of an enforcement notice to the Commissioner and to any local authority or Health Board consulted by the Regulator under section 10(2), and

(b) arrange for the notice to be published in such manner as the Regulator thinks appropriate for bringing it to the attention of persons affected, or who may be affected, by the contravention.

(2) A public water supplier on whom an enforcement notice has been served may, by summary application made within 14 days of the date of service, appeal to the sheriff against the notice.

(3) Where an appeal is brought under subsection (2) the enforcement notice is of no effect until the appeal is withdrawn or finally determined.

(4) On an appeal under subsection (2) the sheriff may make such order as the sheriff thinks fit.

(5) The decision of the sheriff on such an appeal is final.

(6) A public water supplier on whom an enforcement notice has been served—

(a) must consult the Health Board for any area affected by the contravention to which the notice relates, and

(b) must, in rectifying the contravention or taking steps to prevent its recurrence, have regard to any views expressed by the Health Board.

(7) The duty under subsection (6) does not apply during any period in which the enforcement notice is of no effect by virtue of subsection (3).

12 Failure to comply with enforcement notices

(1) This section applies where, in relation to an enforcement notice, a public water supplier—

(a) fails to rectify, or (as the case may be) to take steps to prevent the recurrence of, a contravention specified in the notice by the date specified in relation to the contravention under subsection (3)(c) of section 10, or

(b) fails to complete a step specified under subsection (3)(d) of that section by a date specified in relation to that step under subsection (4),

(or, in either case, by such later date as the Regulator may have substituted under section 14(1)(b)).

(2) Where this section applies, the Regulator may—

(a) enter any premises and carry out the work necessary to rectify or prevent the recurrence of the contravention or, as the case may be, to complete the step, and

(b) recover from the water supplier any expenses which the Regulator reasonably incurs in carrying out, or securing the carrying out, of that work.

(3) The expenses which may be recovered under subsection (2)(b) include such proportion of the Regulator’s administrative expenses (including expenses incurred in establishing the contravention and in connection with the enforcement notice) as the Regulator considers appropriate.

(4) A person who intentionally obstructs a person acting in the exercise of any power conferred by subsection (2)(a) is guilty of an offence.

(5) If, at any time after a date referred to in subsection (1), anything which the enforcement notice requires the water supplier to do by that date has not been done, the water supplier is guilty of an offence.

(6) A person guilty of an offence under subsection (4) or (5) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(7) An offence under subsection (5) may be charged by reference to any day or longer period of time and a public water supplier may be convicted of a second or subsequent offence under that subsection by reference to any period of time following conviction for such an offence.

13 Emergencies

(1) Where the Regulator reasonably believes—

(a) that a public water supplier has contravened or is contravening any drinking water quality duty,

(b) that as a result of the contravention there is a significant risk to public health or the quality of a public drinking water supply, and

(c) that urgent action is necessary to reduce or remove that risk,

the Regulator may take action in accordance with this section.

(2) The Regulator may serve on the water supplier an emergency notice requiring the water supplier, by such date as the notice may specify, to take such steps as the notice may specify, being steps which the Regulator considers necessary for the purpose of reducing or removing the risk referred to in subsection (1)(b).

(3) Without prejudice to subsection (2), the Regulator may—

(a) enter any premises and carry out such work as the Regulator considers necessary for the purpose mentioned in that subsection, and

(b) recover from the water supplier any expenses which the Regulator reasonably incurs in carrying out, or securing the carrying out, of that work.

(4) The expenses which may be recovered under subsection (3)(b) include such proportion of the Regulator’s administrative expenses (including expenses incurred in establishing the contravention and in connection with the emergency notice) as the Regulator considers appropriate.

(5) A person who intentionally obstructs a person acting in the exercise of any power conferred by subsection (3)(a) is guilty of an offence.

(6) If, at any time after the date specified in the emergency notice (or such later date as the Regulator may have substituted under section 14(1)(b)), anything which the notice requires the water supplier to do has not been done, the water supplier is guilty of an offence.

(7) A person guilty of an offence under subsection (5) or (6) is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum,

(b) on conviction on indictment, to a fine.

(8) An offence under subsection (6) may be charged by reference to any day or longer period of time and a public water supplier may be convicted of a second or subsequent offence under that subsection by reference to any period of time following conviction for such an offence.

14 Variation and withdrawal of notices

(1) The Regulator may—

(a) withdraw an enforcement notice or an emergency notice,

(b) waive or relax any requirement of an enforcement notice or an emergency notice, including substituting a later date for a date specified under section 10(3)(c) or (4) or, as the case may be, section 13(2).

(2) The powers in subsection (1) may be exercised whether or not the notice has taken effect.

(3) The withdrawal of an enforcement notice or an emergency notice does not affect the Regulator’s power to issue a further such notice.

15 Register of enforcement notices and emergency notices

(1) The Regulator must keep a register of enforcement notices and emergency notices.

(2) The register must, in relation to each such notice, specify—

(a) the name and address of the water supplier on whom the notice was served,

(b) the date of service,

(c) the compliance date, and

(d) in the case of an enforcement notice, the date specified under section 10(3)(e).

(3) The Scottish Ministers may by order make provision as to—

(a) the manner in which the register is to be kept,

(b) the information, in addition to that required by subsection (2), which the register is to contain.

(4) In subsection (2)(c), “the compliance date” means—

(a) in relation to an enforcement notice, the date specified under section 10(3)(c),

(b) in relation to an emergency notice, the date specified under section 13(2),

and, in either case, includes any date substituted for that date under section 14(1)(b).

(5) The register must be made available for inspection by any person at any reasonable time.

Supervision of local authority enforcement

16 Power to require information from local authorities

(1) A local authority must, on being requested to do so by the Regulator, provide the Regulator with such information held by it as the Regulator may reasonably seek in relation to the enforcement by the local authority of the drinking water quality duties which it is the authority’s responsibility to enforce.

(2) Where a local authority and the Regulator cannot agree whether information is being sought reasonably, either of them may refer the matter to the Scottish Ministers, whose decision is final.

Supplementary

17 Annual reports

The Regulator must, as soon as practicable after the end of each calendar year, submit to the Scottish Ministers, and publish, a report on the exercise of the Regulator’s functions during that year.

18 Powers of entry etc.: further provision

(1) Schedule 2 makes further provision about the exercise of powers of entry etc. conferred by sections 9(1), 12(2)(a) and 13(3)(a).

(2) References in this Part to a power conferred by any of those provisions include references to such a power exercisable by virtue of a warrant under that schedule.

19 Interpretation of Part 2

In this Part—

• “drinking water quality duty” has the meaning given by section 7(7),

• “emergency notice” means a notice under section 13(2),

• “enforcement notice” means a notice under section 10(1),

• “public water supplier” has the meaning given by section 7(7),

• “Regulator” means the Drinking Water Quality Regulator for Scotland.

Part 3 Scottish Water

Establishment

20 Scottish Water

(1) There is established a body corporate to be known as Scottish Water, with the functions conferred on it by or under this Act and any other enactment.

(2) Schedule 3 makes further provision about the status, constitution, proceedings etc. of Scottish Water.

21 Transfer of functions from new water and sewerage authorities

The functions of each of the new water and sewerage authorities are transferred to Scottish Water.

22 Transfer of property and liabilities

(1) The property and liabilities to which the new water and sewerage authorities are entitled or subject are transferred to Scottish Water.

(2) Subsection (1) has effect in relation to property and liabilities to which it applies despite any provision (of whatever nature) which would otherwise prevent, penalise or restrict the transfer of the property or liabilities.

23 Transfer of staff

The Transfer of Undertakings (Protection of Employment) Regulations 1981 (S.I.1981/1794) apply to the transfer of functions by section 21, whether or not they would so apply apart from this section.

24 Dissolution of new water and sewerage authorities etc.

(1) The new water and sewerage authorities are dissolved on such date as the Scottish Ministers may by order specify.

(2) Different dates may be specified in relation to different such authorities.

(3) Without prejudice to section 69, the Scottish Ministers may by order make such incidental, supplemental, consequential, transitional, transitory or saving provision as they think necessary or expedient in consequence of or in connection with—

(a) the establishment of Scottish Water,

(b) the transfer of functions, property, liabilities and staff of the new water and sewerage authorities,

(c) the dissolution of those authorities.

General powers

25 General powers

(1) Scottish Water may engage in any activity (whether in Scotland or elsewhere) which it considers is not inconsistent with the economic, efficient and effective exercise of its core functions (within the meaning of section 70(2)).

(2) Scottish Water may do anything (whether in Scotland or elsewhere) which it considers is necessary or expedient for the purpose of or in connection with its functions (including any activity in which it engages by virtue of subsection (1)).

(3) The power in subsection (2) includes, in particular, power to—

(a) form or promote (whether alone or with others) companies (within the meaning of the Companies Act 1985 (c. 6)),

(b) subscribe for share or loan capital of any person,

(c) guarantee the discharge of any obligation (whether financial or not) of any person,

(d) form partnerships, enter into arrangements or agreements and co-operate in any way with any person,

(e) enter into a contract with any person for the provision or making available of assets or services, or both (whether or not together with goods) whether by Scottish Water or by that person.

(4) Where—

(a) under subsection (2), Scottish Water enters into a contract such as is referred to in subsection (3)(e) (a “provision contract”), and

(b) in connection with the provision contract, a person (the “financier”) makes a loan to, or provides any other form of finance for, a party to the provision contract other than Scottish Water,

the power in subsection (2) also includes power to enter into a contract with the financier, or any insurer of or trustee for the financier, in connection with the provision contract.

(5) In subsection (3)(e), “assets” means assets of any description (whether tangible or intangible), including (in particular) land, buildings, roads, works, plant, machinery, vehicles, vessels, apparatus, equipment and computer software.

(6) This section is without prejudice to any power otherwise exercisable by Scottish Water but does not enable Scottish Water—

(a) to do anything in contravention of any express prohibition, restriction or limitation on its powers which is contained in any other enactment,

(b) to raise money (whether by borrowing or otherwise) in a manner which is not authorised apart from this section.

Codes of practice

26 Customer standards code

(1) In relation to services provided in the exercise of its core functions, Scottish Water must prepare and submit to the Commissioner a code of practice (a “customer standards code”) making provision—

(a) as to its standards of performance in providing services to its customers,

(b) for procedures for dealing with complaints by its customers or its potential or former customers,

(c) as respects the circumstances in which it will pay compensation if or in so far as those standards are not attained,

(d) as respects such matters as are incidental to the provision made under paragraphs (a) to (c), and such supplemental matters (if any) as it thinks fit.

(2) The customer standards code must be submitted to the Commissioner no later than the date on which Scottish Water first sends a charges scheme to the Commissioner under section 32(1).

(3) Subject to subsection (1), Scottish Water may from time to time—

(a) vary, or

(b) revoke and replace,

its customer standards code, and must submit the varied or new code to the Commissioner.

(4) A customer standards code submitted to the Commissioner under subsection (1) or (3) comes into force only when it is approved in accordance with section 27.

(5) Scottish Water must endeavour to comply with its approved customer standards code; but contravention of that code does not of itself give rise to any criminal or civil liability.

(6) Scottish Water must publish the approved customer standards code and provide a copy of the code to any person who requests it.

(7) The Commissioner—

(a) must monitor the compliance by Scottish Water with its approved customer standards code,

(b) may advise the Scottish Ministers on such compliance, and

(c) may require Scottish Water to review its customer standards code, or any provision of it, in such respects as the Commissioner may specify.

27 Approval of customer standards code

(1) The Commissioner may, after consulting each Water Customer Consultation Panel, approve a customer standards code submitted under section 26(1) or (3)—

(a) without modifications, or

(b) with such modifications as are agreed by the Commissioner and Scottish Water.

(2) Where—

(a) the Commissioner is not prepared to give approval under subsection (1)(a), and

(b) Scottish Water does not agree to some or all of the modifications proposed by the Commissioner under subsection (1)(b),

the Commissioner must send the code (with any modifications to it agreed by the Commissioner and Scottish Water) to the Scottish Ministers.

(3) Where 3 months have elapsed since the Commissioner has received a customer standards code by virtue of section 26(1) or (3) and the Commissioner has neither—

(a) given approval under subsection (1) of this section, nor

(b) sent the scheme to the Scottish Ministers under subsection (2) of this section,

Scottish Water may require the Commissioner to send it to the Scottish Ministers.

(4) The Scottish Ministers may, after consulting each Water Customer Consultation Panel, approve a code sent to them under subsection (2) or (3)—

(a) without modifications or further modifications, or

(b) with such modifications as, after consulting Scottish Water and the Commissioner, they think fit.

(5) Where the Commissioner approves a customer standards code under subsection (1), the Commissioner must send a copy of the code as so approved to the Scottish Ministers.

(6) Where the Scottish Ministers approve a customer standards code under subsection (4), they must send a copy of the code as so approved to the Commissioner.

28 Consultation code

(1) Scottish Water must prepare and submit to the Scottish Ministers a code of practice (a “consultation code”) making provision as to the consultation which it will carry out in relation to—

(a) proposals for, and

(b) the undertaking of,

any significant activity in the exercise of its core functions.

(2) The consultation code must, in particular, make provision—

(a) as to consultation with persons who live, work or carry on business in any area significantly affected by such an activity, or who represent the interests of such persons,

(b) as to the manner of such consultation, the information to be provided to consultees and the time to be allowed for consultees to express views,

(c) for Scottish Water to have regard to the views of the persons consulted in pursuance of the code,

and may make different provision in relation to different cases or descriptions of case.

(3) Before submitting the consultation code to the Scottish Ministers, Scottish Water—

(a) must consult each Water Customer Consultation Panel on the code and have regard to any comments on it made by any Panel, and

(b) may adjust the code in light of those comments.

(4) The Scottish Ministers may approve the consultation code—

(a) without modifications, or

(b) with such modifications as, after consulting Scottish Water, they think fit.

(5) A consultation code submitted to the Scottish Ministers under subsection (1) comes into force only when it is approved in accordance with subsection (4).

(6) Scottish Water must publish the approved consultation code and provide a copy of the code to any person who requests it.

(7) Scottish Water must endeavour to comply with the approved consultation code; but contravention of the code does not of itself give rise to any criminal or civil liability.

(8) Subject to subsection (1), Scottish Water may from time to time—

(a) vary, or

(b) revoke or replace,

the consultation code; and this section applies to the varied or new code as it does to the original code.

Charges

29 Charges for goods and services

(1) Scottish Water may fix, demand and recover charges for any goods supplied or services provided by it.

(2) Subsection (1)—

(a) is subject to sections 9A and 47 of the 1980 Act (no charge for water in certain circumstances), and

(b) does not apply in a case where Scottish Water has power otherwise than under that subsection to fix charges for goods or services.

(3) The power conferred by subsection (1) is exercisable—

(a) in relation to charges for services provided in the exercise of Scottish Water’s core functions, by or in accordance with a charges scheme under section 31, and

(b) in that or any other case, by or in accordance with an agreement with the person to be charged.

(4) Subject to sections 31 to 36, Scottish Water may fix charges under this section by reference to such matters, and may adopt such methods and principles for the calculation and imposition of the charges, as appear to it to be appropriate.

30 Maximum charges for services provided with help of Scottish Water

(1) The Scottish Ministers may by order fix maximum charges which a person other than Scottish Water may recover from another such person in respect of the supply of water to, the provision of sewerage to, or the disposal of sewage for that other person with the help of services provided by Scottish Water.

(2) For the purposes of this section, water is supplied to, sewerage provided to, or sewage disposed of for a person with the help of services provided by Scottish Water if—

(a) a facility for that person to have access to a supply of water provided by Scottish Water in pipes, or to make use of sewerage which is, or facilities for the disposal of sewage which are, provided by Scottish Water is made available to that person otherwise than by Scottish Water,

(b) that person is provided with a supply of water in pipes by a person to whom the water is supplied, directly or indirectly, by Scottish Water, or

(c) that person is provided with sewerage, or with facilities for the disposal of sewage, by a person who, for the purposes of providing the sewerage or facilities, makes use of sewerage or of such facilities provided, directly or indirectly, by Scottish Water.

(3) An order under this section may make different provision in relation to different persons, circumstances or localities and may fix a maximum charge either by specifying the maximum amount of the charge or by specifying a method of calculating that amount.

(4) Where a person pays a charge in respect of anything to which an order under this section relates and the amount paid exceeds the maximum charge fixed by the order, the amount of the excess is recoverable by that person from the person to whom the charge was paid.

31 Charges schemes

(1) Scottish Water must, in accordance with this section, make a scheme (referred to in this Act as a “charges scheme”) which fixes the charges to be paid for services provided by it in the exercise of its core functions and which may also make provision with respect to the times and methods of payment of the charges fixed by the scheme.

(2) Subsection (1) does not apply in relation to services as respects which conditions as to payment may be imposed under section 29(3)(j) of the 1968 Act (conditions relating to the reception, treatment and disposal of trade effluent).

(3) A charges scheme may—

(a) make different provision for different cases, or classes of case, including different provision in relation to different circumstances or localities,

(b) contain supplemental, consequential and transitional provisions for the purposes of the scheme,

(c) revoke or amend a previous scheme.

(4) A charges scheme comes into force only when it is approved in accordance with section 32 and has effect as so approved.

(5) Scottish Water in making a charges scheme, and the Commissioner and the Scottish Ministers in considering whether to approve such a scheme, must have regard to any advice published under section 33 in force at the time of the making of the scheme.

(6) Nothing in any charges scheme affects any power of Scottish Water to enter into an agreement with any person in any particular case determining the charges to be made for services provided by Scottish Water.

32 Approval of charges schemes

(1) Scottish Water must send a charges scheme made by it under section 31 to the Commissioner.

(2) The Commissioner may approve the scheme—

(a) without modifications, or

(b) with such modifications as are agreed by the Commissioner and Scottish Water.

(3) Where—

(a) the Commissioner is not prepared to give approval under subsection (2)(a), and

(b) Scottish Water does not agree to some or all of the modifications proposed by the Commissioner under subsection (2)(b),

the Commissioner must send the scheme (with any modifications to it agreed by the Commissioner and Scottish Water) to the Scottish Ministers.

(4) Where 3 months have elapsed since the Commissioner has received a charges scheme by virtue of subsection (1) and the Commissioner has neither—

(a) given approval under subsection (2), nor

(b) sent the scheme to the Scottish Ministers under subsection (3),

Scottish Water may require the Commissioner to send it to the Scottish Ministers.

(5) The Scottish Ministers may approve a scheme sent to them under subsection (3) or (4)—

(a) without modifications or further modifications, or

(b) with such modifications as, after consulting Scottish Water and the Commissioner, they think fit.

(6) Where the Commissioner approves a charges scheme under subsection (2), the Commissioner must send a copy of the scheme as so approved to the Scottish Ministers.

(7) Where the Scottish Ministers approve a charges scheme under subsection (5), they must send a copy of the scheme as so approved to the Commissioner.

33 Commissioner’s advice on charges

(1) The Commissioner must, when required by the Scottish Ministers, advise them on the matters to be taken into, or left out of, account by Scottish Water in fixing charges in charges schemes.

(2) The advice is to apply in relation to charges schemes made during such period as the Scottish Ministers may specify (in this section referred to as “the period of the advice”).

(3) In preparing advice, the Commissioner is to have regard to—

(a) the economy, efficiency and effectiveness with which Scottish Water is using its resources in exercising its core functions,

(b) the likely cost to Scottish Water, for the period of the advice, of exercising the functions specified in subsection (4),

(c) the likely resources, other than income from charges for goods and services, available to Scottish Water for the period of the advice,

(d) any guidance issued to Scottish Water by the Scottish Ministers, and

(e) any directions given under section 44 or 56.

(4) The functions referred to in subsection (3)(b) are the core functions of Scottish Water so far as consisting of—

(a) complying with any duty to which it is subject by virtue of any enactment,

(b) complying with any such