Water Act 1989

7 General duties with respect to water supply and sewerage services

(1) Subsections (2) and (3) below shall have effect, subject to subsection (5) below, for imposing duties on the Secretary of State and on the Director as to when and how they should exercise the following powers and perform the following duties, that is to say—

(a) in the case of the Secretary of State, the powers and duties conferred or imposed on him by virtue of provisions contained in Chapter I of Part II of this Act or in section 38, 68 or 162 below; and

(b) in the case of the Director, the powers and duties conferred or imposed on him by virtue of provisions mentioned in paragraph (a) above or by virtue of section 41, 43, 72 or 161 below.

(2) The Secretary of State or, as the case may be, the Director shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner that he considers is best calculated—

(a) to secure that the functions of a water undertaker and of a sewerage undertaker are properly carried out as respects every area of England and Wales; and

(b) without prejudice to the generality of paragraph (a) above, to secure that companies holding appointments under Chapter I of Part II of this Act as water undertakers or sewerage undertakers are able (in particular, by securing reasonable returns on their capital) to finance the proper carrying out of the functions of such undertakers.

(3) Subject to subsection (2) above, the Secretary of State or, as the case may be, the Director shall exercise and perform the powers and duties mentioned in subsection (1) above in the manner that he considers is best calculated—

(a) to ensure that the interests of every person who is a customer or potential customer of a company which has been or may be appointed under Chapter I of Part II of this Act to be a water undertaker or sewerage undertaker are protected as respects the fixing and recovery by that company of—

(i) charges in respect of any services provided in the course of the carrying out of the functions of a water undertaker or sewerage undertaker; and

(ii) amounts of any other description which such an undertaker is authorised by or under any enactment to require such a person to pay;

and, in particular, that the interests of customers and potential customers in rural areas are so protected and that no undue preference is shown, and that there is no undue discrimination, in the fixing of those charges and amounts;

(b) to ensure that the interests of every such person are also protected as respects the other terms on which any services are provided by that company in the course of the carrying out of the functions of a water undertaker or sewerage undertaker and as respects the quality of those services;

(c) to ensure that the interests of every such person are further protected as respects benefits that could be secured for them by the application in a particular manner of any of the proceeds of a disposal (whether before, on or after the transfer date) of any of that company’s protected land or of any interest or right in or over any of that land;

(d) to promote economy and efficiency on the part of any such company in the carrying out of the functions of a water undertaker or sewerage undertaker; and

(e) to facilitate effective competition, with respect to such matters as he considers appropriate, between persons holding or seeking appointments under that Chapter.

(4) In performing his duty under subsection (3) above, so far as it requires him to do anything in the manner which he considers is best calculated to ensure that the interests of the customers and potential customers of any company are protected as respects the quality of any services provided by that company in the course of the carrying out of the functions of a water undertaker or sewerage undertaker, the Secretary of State or, as the case may be, the Director shall take into account, in particular, the interests of those who are disabled or of pensionable age.

(5) The Secretary of State may give the Director directions of a general or specific character with respect to the exercise in relation to any company which is wholly owned by the Crown of any power conferred on the Director by or under the provisions of Part II of this Act; and it shall be the duty of the Director to comply with any such direction.

(6) It shall be the duty of the Authority, in exercising any of its powers under any enactment, to have particular regard to the duties imposed, by virtue of the provisions of Part II of this Act, on any water undertaker or sewerage undertaker which appears to the Authority to be or to be likely to be affected by the exercise of the power in question.

(7) It shall be the duty of the Secretary of State and of the Minister, in exercising—

(a) any power conferred by virtue of this Act in relation to, or to decisions of, the Authority; or

(b) any power which, but for any direction given by the Secretary of State or the Minister, would fall to be exercised by the Authority,

to take into account the duty imposed on the Authority by subsection (6) above.