The Water and Sewerage Undertakers (Exit from Non-household Retail Market) Regulations 2016

PART 6 Identifying a provider of sewerage services in a retail exit area

CHAPTER 1 Identifying a new provider where a customer has switched provider

Introduction

46.  This Chapter applies where a sewerage undertaker has withdrawn from the non-household retail market and, on or after the exit date, a transferred customer has—

(a) arranged for the acquiring licensee to continue to provide sewerage services to the customer’s transferred premises on terms and conditions other than those provided for by a scheme under regulation 29, or

(b) arranged for a sewerage licensee other than the acquiring licensee to provide sewerage services to the customer’s transferred premises.

Customer’s right to apply for appointment of alternative sewerage licensee

47.  The transferred customer may apply to the WSRA for an alternative sewerage licensee to be appointed.

The WSRA’s duty to direct an alternative sewerage licensee to provide sewerage services

48.—(1) On receiving an application under regulation 47 the WSRA must direct an eligible sewerage licensee to provide the sewerage services instead of the previous sewerage licensee.

(2) The direction must specify the time from which the new licensee is to provide the sewerage services.

Duties of sewerage licensee directed to provide sewerage services to premises

49.—(1) A sewerage licensee directed under regulation 48 to provide sewerage services to premises must notify the previous sewerage licensee.

(2) The terms and conditions in accordance with which the services are to be provided are—

(a) those provided for by a scheme under regulation 29, or

(b) such other terms and conditions as may be agreed between the licensee and the customer.

(3) The services are to be provided until they are discontinued in accordance with the terms and conditions mentioned in paragraph (2).

Saving for customer liability

50.  Nothing in regulations 47 to 49 affects any liability of the transferred customer for breach of contract or otherwise as a result of terminating arrangements for the provision of sewerage services by the previous sewerage licensee.

CHAPTER 2 Identifying a provider where none can be found

Introduction

51.—(1) This Chapter applies where a sewerage undertaker that has withdrawn from the non-household retail market receives a sewerage services request.

(2) In this Chapter a “sewerage services request” means a request by the owner or occupier of any non-household premises in the retail exit area to provide those premises with sewerage services.

Undertaker’s duty to notify person of retail exit

52.—(1) The sewerage undertaker must, as soon as possible, notify the person who made the sewerage services request that the undertaker has withdrawn from the non-household retail market.

(2) The notice must explain that the person needs to arrange for a sewerage licensee to provide sewerage services to the premises and explain, in general terms, the possible consequences under this Chapter if the person fails to do so.

Undertaker’s duty to provide services etc. pending identification of sewerage licensee

53.  Chapter 2A of Part 4 of the 1991 Act(1) is to apply as if a sewerage licensee had made a request to the sewerage undertaker under sections 117A(1) or 117B(1) of that Act(2), at the time at which the person made the sewerage services request, for the purpose of providing the premises with sewerage services and dealing effectually with certain quantities of matter in the undertaker’s sewerage system.

Sewerage licensee is identified

54.  Where a sewerage undertaker is notified that a sewerage licensee has agreed, or has been directed under regulation 56, to provide the premises with sewerage services—

(a) the requests treated by regulation 53 as having been made by a sewerage licensee are to be treated as having been made by that sewerage licensee, and

(b) any services provided by the undertaker are to be treated as having been provided by that licensee.

Sewerage licensee is not identified

55.—(1) The sewerage undertaker must notify the WSRA if, by the end of the relevant period, the undertaker has not received a notice that a sewerage licensee has agreed to provide sewerage services to the premises.

(2) The sewerage undertaker must also notify the WSRA if at any time after the end of the relevant period it receives a notice that a sewerage licensee has agreed to provide sewerage services to the premises.

(3) In this regulation—

“the relevant period” means the period of 22 working days beginning with the day on which the relevant undertaker receives the sewerage services request;

“working day” means a day which is not a Saturday or a Sunday, Christmas Day, Good Friday or a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971.

The WSRA’s duty to direct a sewerage licensee to provide services

56.—(1) On receiving a notice under regulation 55(1), the WSRA must direct an eligible sewerage licensee to provide the sewerage services.

(2) The WSRA ceases to be under the duty imposed by this regulation if it receives a notice under regulation 55(2).

Duties of sewerage licensee directed to provide services

57.—(1) A sewerage licensee directed under regulation 56 to provide sewerage services to premises must notify the sewerage undertaker (with the consequences mentioned in regulation 54).

(2) The terms and conditions in accordance with which the services are to be provided are—

(a) those provided for by a scheme under regulation 29, or

(b) such other terms and conditions as may be agreed between the licensee and the owner or occupier of the premises.

(3) The services are to be provided until they are discontinued in accordance with the terms and conditions mentioned in paragraph (2).

CHAPTER 3 List of eligible sewerage licensees

List of eligible sewerage licensees

58.—(1) The WSRA must maintain a list of eligible sewerage licensees for each retail exit area.

(2) The list for each retail exit area must contain—

(a) the acquiring licensee or licensees for the area, other than—

(i) a sewerage licensee whose retail authorisation relates only to premises of the licensee or persons associated with the licensee (and expressions used in this paragraph are to be read in accordance with Schedule 2B to the 1991 Act(3)); and

(ii) any licensee that the WSRA has decided not to include on the list in accordance with paragraph (3); and

(b) any other sewerage licensee with a retail authorisation that has applied to be included and has not applied to be removed.

(3) At the request of an acquiring licensee, the WSRA may decide not to include that licensee on the list of eligible sewerage licensees for a retail exit area where—

(a) such a decision would leave at least one acquiring licensee on that list; and

(b) the WSRA is satisfied on the basis of the proposed business model of the acquiring licensee that it would be appropriate for that licensee not to be included on the list.

CHAPTER 4 Supplementary

Guidance about directions and list of eligible sewerage licensees

59.—(1) The WSRA must from time to time publish guidance about—

(a) the exercise of its powers to give directions under regulations 48 and 56, and

(b) the maintenance of the list of sewerage licensees under regulation 58.

(2) The guidance may, in particular, make provision about—

(a) the criteria used by the WSRA to determine which eligible sewerage licensee to direct under regulation 48 or 56;

(b) the inclusion of sewerage licensees in a list of eligible sewerage licensees under regulation 58 and their removal.

Terms and conditions applying to performance of duties under Chapter 2

60.—(1) The WSRA must by order specify the terms and conditions that, in the absence of express agreement by a sewerage undertaker and sewerage licensee, are to apply in relation to the performance by the sewerage undertaker of any duties under section 117A or 117B of the 1991 Act that arise by virtue of a request that is treated as having been made by Chapter 2 of this Part.

(2) An order under this regulation—

(a) may make any provision that may be made by order under section 117E(1) of the 1991 Act(4),

(b) is subject to the same constraints as an order under section 117E(1) (ignoring section 117E(1) itself and section 117E(2)), and

(c) is to be treated for all other purposes as being an order under section 117E(1).

Amendment or revocation of local statutory provisions

61.—(1) On the request of a relevant undertaker that has made an exit application, and with the agreement of the acquiring licensee or licensees, the Secretary of State may, by regulations made by statutory instrument, amend or repeal any local statutory provision that imposes duties on the relevant undertaker relating to the supply of retail services.

(2) Regulations made under this regulation may—

(a) make provision applying generally in relation to local statutory provisions of a description specified in the regulations;

(b) make different provision for different cases, including different provision in relation to different persons, circumstances or localities;

(c) contain such incidental, supplementary, consequential, transitional or transitory provision as the Secretary of State considers appropriate.

(3) A statutory instrument containing regulations made under this regulation is subject to annulment in pursuance of a resolution of either House of Parliament.

(1)

Chapter 2A of Part 4 of the 1991 Act was inserted by Schedule 4 to the Water Act 2014.

(2)

Sections 117A and 117B are prospectively inserted by Schedule 4 to the Water Act 2014 from a date to be appointed.

(3)

Schedule 2B to the 1991 Act was inserted by section 4(2) of, and Schedule 3 to, the Water Act 2014 (c. 21).

(4)

Section 117E is prospectively inserted by Schedule 4 to the Water Act 2014 from a date to be appointed.