PART IIIAPPOINTMENT AND REGULATION OF UNDERTAKERS

CHAPTER IAPPOINTMENTS

Conditions of appointment

Determinations under conditions of appointmentI119

1

Without prejudice to the generality of sub-paragraph (a) of Article 18(1), conditions included in an appointment by virtue of that sub-paragraph may—

a

require the appointed company to comply with any direction given by the Authority as to such matters as are specified in the appointment or are of a description so specified; and

b

require the appointed company, except in so far as the Authority consents to the company's doing or not doing them, not to do or to do such things as are specified in the appointment or are of a description so specified.

2

Without prejudice as aforesaid, such conditions may provide for the reference to and determination by—

a

the Department or the Authority; or

b

on a reference by the Authority, the F1CMA,

of such questions arising under the appointment and of such other matters, including (in the case of references to F2the CMA) disputes as to determinations by the Authority, as are specified in the appointment or are of a description so specified.

3

Where any question or other matter falls to be determined by the F3CMA in pursuance of a provision contained in an appointment under this Chapter—

a

it shall be the duty of the Authority, on being required to do so by the company holding that appointment, to refer that question or matter to F4the CMA; and

b

it shall be the duty of F4the CMA to determine any question or other matter referred by virtue of sub-paragraph (a) in accordance with the principles which apply, by virtue of Part II, in relation to determinations under this Chapter by the Authority.

4

For the purposes of paragraph (3), where—

a

the question or matter referred to the F5CMA concerns the review of a price control imposed on the company holding the appointment; and

b

F6the CMA is to decide to what extent it is reasonable to take into account in its determination costs incurred or borne by the company in connection with the reference,

F6the CMA shall also have regard to the extent to which, in its view, its determination is likely to support the company's (rather than the Authority's) claims in relation to the question or matter referred to it.

5

Paragraphs (4) and (5) of Article 21, and Articles 26 and 27 apply to references to the F7CMA under this Article as they apply to references under Article 21.

6

A report of the F8CMA on a reference under this Article—

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 its reasons for those conclusions as, in the opinion of F9the CMA, is expedient for facilitating a proper understanding of those questions or other matters and of its conclusions,

and paragraphs (10) and (11) of Article 24 apply to such a report as they apply to a report on a reference under Article 21.

F107

The functions of the CMA with respect to a reference under this Article are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act, as applied by paragraph (5) read with Article 27).