Part II APPOINTMENTMENT AND REGULATION OF UNDERTAKERS
C1C4C10C2F1CHAPTER 1AF138Water supply licences and sewerage licences
Pt. 2 Ch. 1A heading substituted (1.4.2016) by Water Act 2014 (c. 21), s. 94(3), Sch. 7 para. 9; S.I. 2016/465, art. 2(m), Sch. 1 para. 1(e) (with Sch. 2) (as amended (22.3.2017) by S.I. 2017/462, art. 16)
Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 3(1) (with reg. 1(1)(c))
Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 5(1) (with reg. 1(1)(c))
Pt. 2 Ch. 1A applied (with modifications) (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 4 (with reg. 1(1)(c)) (as amended (10.1.2015) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2015 (S.I. 2015/22), regs. 1(1), 3)
Pt. 2 Ch. 1A modified (28.6.2013) by The Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582), reg. 1(1)(b), Sch. 1 para. 3(2) (with reg. 1(1)(c))
Granting of licences
17AF75Water supply licences
1
The Authority may grant to a person a licence in respect of the use of the supply system of a water undertaker (a “water supply licence”).
2
A water supply licence may give the holder of the licence one or more of the following authorisations and combination of authorisations—
a
a retail authorisation;
b
a wholesale authorisation;
c
a restricted retail authorisation;
d
a restricted retail authorisation and a supplementary authorisation.
3
Schedule 2A makes provision as to the authorisations (including their operation in England and Wales).
4
In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 3.
5
The Authority may exercise the power to grant a water supply licence only in accordance with a general authorisation given by the Secretary of State.
6
Before giving a general authorisation as regards the Authority, the Secretary of State must consult the Welsh Ministers.
7
References in this Act to a water supply licensee are references to a person that is the holder for the time being of a water supply licence.
17AAF75Water supply licences: restrictions on grants
1
Before the Authority grants a water supply licence giving a wholesale authorisation, it must consult—
a
the Secretary of State;
b
the Chief Inspector of Drinking Water;
c
the Environment Agency;
d
the NRBW.
2
Before the Authority grants a water supply licence giving a supplementary authorisation, it must consult—
a
the Secretary of State;
b
the Chief Inspector of Drinking Water;
c
the Environment Agency;
d
the Welsh Ministers;
e
the Chief Inspector of Drinking Water for Wales if there is one;
f
the NRBW.
3
A water supply licence may not be granted to a water undertaker.
4
A water supply licence may not be granted to a person unless that person is a limited company.
5
The restriction in subsection (4) does not apply if the water supply licence gives only—
a
a retail authorisation,
b
a restricted retail authorisation, or
c
a retail authorisation and a restricted retail authorisation.
17BSection 17A: supplementary
1
The Authority shall publish guidance issued under section 17A(9) above in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.
2
The Authority may, with the approval of the Secretary of State, revise the guidance so issued.
3
Before giving his approval to guidance revised under subsection (2) above, the Secretary of State shall consult the Assembly.
4
Subsection (1) above applies to guidance revised under subsection (2) above as it applies to guidance issued under section 17A(9) above.
5
In this Chapter, references to the supply system of a water undertaker are to the system comprising the following—
a
any water mains and other pipes which it is the water undertaker’s duty to develop and maintain by virtue of section 37 below and which are used for the purpose of conveying water from the undertaker’s treatment works to the premises of customers; and
b
any water mains and other pipes which—
i
are used by the undertaker for the purpose of conveying non-domestic water from any of its sources to the premises of customers; and
ii
are not connected to any water mains or pipes falling within paragraph (a) above or to any water mains or other pipes connected to the treatment works mentioned in that paragraph (whether directly or indirectly),
and in sub-paragraph (i) above the reference to non-domestic water is to water supplied other than for domestic or food production purposes.
6
In subsection (5)(a) above, the reference to treatment works is a reference to the works designated from time to time by the Secretary of State as treatment works for the purposes of this subsection.
7
Before designating any works for the purposes of subsection (6) above, the Secretary of State shall consult the Assembly.
8
A list of any works designated for the purposes of subsection (6) above shall be published from time to time by the Secretary of State in such manner as he considers appropriate for the purpose of bringing the designations to the attention of persons likely to be affected by them.
F1159
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17BAF76Sewerage licences
1
The Authority may grant to a person a licence in respect of the use of the sewerage system of a sewerage undertaker whose area is wholly or mainly in England (a “sewerage licence”).
2
A sewerage licence may give the holder of the licence one or more of the following—
a
a retail authorisation;
b
a wholesale authorisation;
c
a disposal authorisation.
3
Schedule 2B makes provision as to the authorisations.
4
In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 4.
5
The Authority may exercise the power to grant a sewerage licence only in accordance with a general authorisation given by the Secretary of State.
6
References in this Act to a sewerage licensee are references to a person that is the holder for the time being of a sewerage licence.
7
References in this Chapter to the sewerage system of a sewerage undertaker are references to the system comprising—
a
the system of public sewers, the facilities for emptying public sewers and the sewage disposal works and other facilities for dealing effectually with the contents of public sewers that the undertaker is required to provide by section 94, and
b
the lateral drains that the undertaker is required to maintain by section 94.
17BBSewerage licences: restrictions on grants
1
The Authority must consult the Secretary of State, the Environment Agency and the NRBW before granting a licence that gives—
a
a wholesale authorisation, or
b
a disposal authorisation.
2
A sewerage licence granted to a sewerage undertaker may not give the holder—
a
a retail authorisation, or
b
a wholesale authorisation.
3
A sewerage licence may not be granted to a person unless that person is a limited company.
4
The restriction in subsection (3) does not apply if the sewerage licence gives only a retail authorisation.
17CMeaning of household premises
1
For the purposes of F44paragraphs 4 and 7(a) of Schedule 2A and paragraph 2 of Schedule 2B, “household premises” means premises in which, or in any part of which, a person has his home.
2
The fact that a person has his home in, or in part of, any premises does not mean that the premises are household premises unless the principal use of the premises is as a home.
3
The Secretary of State may by regulations make provision as to—
a
the circumstances in which a person is or is not to be treated as having his home in, or in part of, any premises for the purposes of this section; and
b
the factors which are, or are not, to be taken into account in determining the principal use of any premises for those purposes.
4
The power to make regulations under subsection (3) above is exercisable by the Assembly (and not by the Secretary of State) in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales.
17DThe threshold requirement
1
2
The requirement is that, at the time when the F137water supply licensee first enters into an undertaking with a customer to give the supply, the total quantity of water estimated to be supplied to the premises annually pursuant to the undertaking F2is not less than—
a
5 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in England, and
b
50 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales.
3
Any estimate of the quantity of water to be supplied to any premises for the purposes of subsection (2) above shall be made in accordance with guidance issued by the Authority with the approval of the Secretary of State.
4
Any guidance issued under subsection (3) above may, in particular—
a
specify—
i
the factors to be, and not to be, taken into account;
ii
the assumptions to be made; and
iii
the method of calculation to be employed,
in making estimates; and
b
make provision as to the commencement of the annual periods by reference to which estimates are to be made.
5
Before giving his approval to any guidance issued under that subsection, the Secretary of State shall consult the Assembly.
6
Subsections (1) to (4) of section 17B above apply to guidance issued under subsection (3) above as they apply to guidance issued under section 17A(9) above.
7
The Secretary of State may make provision by regulations as to the circumstances in which a licensed water supplier is not, for the purposes of subsection (2) above, to be treated as entering into an undertaking with a new customer to give a supply of water to any premises (subject to subsection (12) below).
8
The Secretary of State may by regulations amend subsection (2) above by substituting, for the quantity of water for the time being specified there, a different quantity of water (subject to subsection (12) below).
9
Regulations under subsection (8) above—
a
shall include provision for the amendment made by the regulations not to apply in relation to any undertaking entered into before the date on which the regulations come into force; and
b
may include provision for that amendment not to apply in relation to any undertaking which is proposed, but not entered into, before that date.
10
A statutory instrument containing regulations under subsection (8) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
11
Before making regulations under subsection (8) above, the Secretary of State shall consult—
a
the Authority; and
b
such other persons (if any) as the Secretary of State thinks it appropriate to consult.
12
The powers to make regulations under subsections (7) and (8) above are exercisable by the Assembly (and not by the Secretary of State) in relation to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales.
13
Subsections (9) and (11) above apply in relation to regulations made by the Assembly under subsection (8) above by virtue of subsection (12) above as they apply in relation to regulations made by the Secretary of State under subsection (8) above.
17DAF45Guidance
The Authority must publish guidance issued from time to time under—
a
section 17D(3),
b
paragraph 10 of Schedule 2A, or
c
paragraph 4 of Schedule 2B,
in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.
17EDeterminations by the Authority
F801
The Authority may determine, in a case referred to it by—
a
a water supply licensee or a potential customer of a water supply licensee, or
b
a sewerage licensee or a potential customer of a sewerage licensee,
whether a proposed supply of water to, or proposed sewerage services for, the customer would be in accordance with what is authorised by the licensee's licence.
2
The matters which the Authority may determine include the following matters—
a
the extent of the premises to be supplied for the purposes of F78paragraph 4 or 7(a) or (b) of Schedule 2A;
F79aa
the extent of the premises to be served for the purposes of paragraph 2 of Schedule 2B;
b
whether the premises to be supplied F81or served are household premises (as defined in section 17C above); and
c
whether the threshold requirement is satisfied in relation to the premises to be supplied (construed in accordance with section 17D above),
and also include any other matter the determination of which is relevant to those matters.
17FProcedure for granting water supply F89and sewerage licences
F881
The Authority must determine for each type of relevant application that may be made—
a
the form and manner in which an application is to be made;
b
the information it is to contain;
c
the documents that are to accompany it;
d
the fee that is to accompany it.
1A
The fees may be different in different circumstances.
1B
The Authority may make a new determination as to a matter referred to in subsection (1).
1C
The Authority must publish a notice of what it has determined under subsection (1) or (1B) in such manner as it thinks appropriate for bringing the determination to the attention of those affected by the determination.
1D
For the purposes of subsection (1) a relevant application is an application for—
a
the grant of a water supply or sewerage licence giving a particular authorisation or combination of authorisations;
b
the variation of a water supply or sewerage licence so that it gives—
i
a particular authorisation only, or
ii
a particular combination of authorisations.
1E
A person making a relevant application must comply with such provisions of a notice published under subsection (1C) as relate to the application.
F352
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F363
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
If F39... the Authority proposes to refuse F91a relevant application, F40... it shall give to the applicant a notice—
a
stating that F40... it proposes to refuse the application;
b
stating the reasons why F40... it proposes to refuse the application; and
c
specifying the time within which representations or objections with respect to the proposed refusal may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
F375
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
A licence shall be in writing and, unless revoked or suspended in accordance with any condition contained in it, shall continue in force for such period as may be specified in or determined by or under the licence.
7
F38As soon as practicable after granting a licence or variation of a licence, ... the Authority shall serve a copy of the licence or licence as varied—
a
on the licence holder;
b
on the Assembly;
c
on the Chief Inspector of Drinking Water;
d
on the Environment Agency;
F5da
on the NRBW;
e
on the Council;
f
on each relevant undertaker;
F90g
on each water supply licensee and sewerage licensee (other than the holder of the licence in question);
F41h
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
F42... on the Secretary of State.
8
Any sums received F43... by the Authority by virtue of this section shall be paid into the Consolidated Fund.
17FAF77Applications forwarded by the Water Industry Commission for Scotland
1
The Secretary of State may by regulations make provision about—
a
treating a 2005 Act application for the grant of a water services licence under section 6 of the 2005 Act as being also an application under section 17F for the grant of a water supply licence giving only a retail authorisation or a restricted retail authorisation or both;
b
treating a 2005 Act application for the grant of a sewerage services licence under section 6 of the 2005 Act as being also an application under section 17F for the grant of a sewerage licence giving only a retail authorisation.
2
The regulations may in particular make provision about—
a
the circumstances in which, and the conditions subject to which, a 2005 Act application is to be treated as an application under section 17F for a water supply or sewerage licence giving a particular authorisation or particular authorisations;
b
the time at which an application is to be treated as having been made;
c
the processing of an application by the Authority.
3
Provision under subsection (2)(a) may require a 2005 Act application that is forwarded to the Authority—
a
to contain, or to be accompanied by, such information or information of such description as is specified by the regulations;
b
to be accompanied by such documents or documents of such descriptions as are specified by the regulations;
c
to be accompanied by a fee, or a fee of a description, specified by the regulations.
4
In this section and section 17FB—
“the 2005 Act” means the Water Services etc. (Scotland) Act 2005;
“2005 Act application” means an application under paragraph 1 of Schedule 2 to the 2005 Act.
17FBApplications forwarded to the Water Industry Commission for Scotland
1
If the conditions in subsection (2) are satisfied, the Authority must—
a
forward to the Commission a copy of an application under section 17F for the grant of a water supply licence or sewerage licence, and
b
send to the Commission such information and such fee as appear to the Authority to be required in order that the application may be treated by the Commission as a 2005 Act application for the grant of—
i
a water services licence under section 6 of the 2005 Act, or
ii
a sewerage services licence under section 6 of the 2005 Act, as the case may be.
2
The conditions are that—
a
the Authority is requested to do so by the applicant;
b
the application under section 17F appears to the Authority to be an application that would be treated by the Commission as a 2005 Act application for the grant of—
i
a water services licence under section 6 of the 2005 Act, or
ii
a sewerage services licence under section 6 of the 2005 Act, as the case may be;
c
the applicant has given the Authority—
i
such information as is mentioned in subsection (1)(b), and
ii
a means of sending to the Commission such fee as is mentioned in subsection (1)(b).
3
The Authority must—
a
forward a copy of the application, and
b
send such information and fee as are mentioned in subsection (1)(b),
before the end of the agreed period for an application of that description.
4
In this section—
“the agreed period”, in relation to an application under section 17F of a particular description, means the period agreed between the Authority and the Commission as the period applying to an application of that description for the purposes of subsection (3);
“the Commission” means the Water Industry Commission for Scotland.
Licence conditions
17GC1C4C3C2F62Licence conditions
1
F65A licence under this Chapter may include—
a
2
Conditions may be included by virtue of subsection (1)(a) above in a water supply licence whether or not they are connected with the supply of water or the introduction of water into a water undertaker’s supply system.
F632A
Conditions may be included by virtue of subsection (1)(a) in a sewerage licence whether or not they are connected with—
a
effectual dealing with the contents of sewers, or
b
the use of the sewerage system of a sewerage undertaker.
3
Conditions included in a F70licence under this Chapter may—
a
require the holder of the licence to comply with any direction given by a specified relevant person as to specified matters or matters which are of a specified description;
b
require the holder of the licence to do or not to do specified things or things which are of a specified description, except in so far as a specified relevant person consents to the holder’s not doing or doing them; and
c
provide for the reference to and determination by a specified relevant person of specified questions, or questions which are of a specified description, which arise under or in connection with the licence.
4
For the purposes of subsection (3) above—
a
the following are relevant persons—
i
the Secretary of State;
ii
the Authority;
iii
F64so far as subsection (3) applies to water supply licences, the Assembly;
iv
the Environment Agency; F3...
F4v
the NRBW; and
b
“specified” means specified in the licence in question.
5
Conditions included in a F71licence under this Chapter may contain provision for the conditions to have effect, cease to have effect or be modified at such times, in such manner and in such circumstances as may be specified in or determined in accordance with the conditions.
6
Any such condition as is referred to in subsection (5) above shall have effect in addition to the provision made by this Chapter with respect to the modification of the conditions of a licence.
7
Any sums received by F72the Authority by virtue of this section shall be paid into the Consolidated Fund.
17HC1C4C3C2Standard conditions of water supply licences
F471
The Secretary of State may determine the conditions that are to be the standard conditions of water supply licences granted by the Authority.
1A
Before determining the standard conditions, the Secretary of State must consult the Welsh Ministers as regards conditions relating to a restricted retail authorisation or a supplementary authorisation.
1B
The Secretary of State is to publish the standard conditions in such manner as the Secretary of State considers appropriate.
2
The standard conditions may be different depending on the different authorisations or combinations of authorisations to which the conditions are to relate.
3
The power to determine standard conditions in relation to water supply licences giving a particular authorisation or a particular combination of authorisations may be exercised only before the grant of the first licence to give that authorisation or that particular combination of authorisations (but this is without prejudice to the power to modify standard conditions in accordance with the provisions of this Chapter).
4
The standard conditions for the purposes of water supply licences F48giving any particular authorisation or combination of authorisations may contain provision—
a
for any standard condition included in a licence of that description not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;
b
for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; and
c
for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.
5
Subject to subsection (6) below, each condition which is a standard condition shall be incorporated by reference in each water supply licence (or in each such licence to which the standard condition applies).
6
7
Before excluding any standard conditions or making any modifications under subsection (6) above, F54... the Authority shall give notice—
a
stating that F55... it proposes to exclude the conditions or make the modifications and setting out the effect of so doing;
b
stating the reasons why F56... it proposes to exclude the conditions or make the modifications; and
c
specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
8
A notice under subsection (7) above shall be given—
a
by publishing the notice in such manner as F57... the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications; and
b
by serving a copy of the notice—
F49i
if the notice relates to a water supply licence giving a restricted retail authorisation or a restricted retail authorisation and a supplementary authorisation, on the Welsh Ministers;
ii
on the Chief Inspector of Drinking Water;
F58iii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
F59... on the Secretary of State.
F50v
on the Water Industry Commission for Scotland.
9
If, within the time specified in the notice under subsection (7) above, the Secretary of State (after consulting F51the Welsh Ministers in a case where notice was served on them under subsection (8)(b)(i)) directs the Authority not to exclude or modify any standard condition, the Authority shall comply with the direction.
10
The F60... Authority shall not exclude any conditions, or make any modifications, under subsection (6) above unless F61... it is of the opinion that the exclusions or modifications are such that—
a
the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences; and
b
no other holder of a water supply licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence).
11
The modification under subsection (6) above of part of a standard condition shall not prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Chapter.
17HAF46Standard conditions of sewerage licences
1
The Secretary of State may determine the conditions that are to be the standard conditions of sewerage licences granted by the Authority.
2
The Secretary of State is to publish the standard conditions in such manner as the Secretary of State considers appropriate.
3
The standard conditions may be different depending on the different authorisations or combinations of authorisations to which the conditions are to relate.
4
The power to determine standard conditions in relation to sewerage licences giving a particular authorisation or a particular combination of authorisations may be exercised only before the grant of the first licence to give that authorisation or that particular combination of authorisations (but this is without prejudice to the power to modify standard conditions in accordance with the provisions of this Chapter).
5
The standard conditions for the purposes of sewerage licences giving any particular authorisation or combination of authorisations may contain provision—
a
for any standard condition included in a licence of that description not to have effect until brought into operation in such manner and in such circumstances as may be specified in or determined under the standard conditions;
b
for the effect of any standard condition included in such a licence to be suspended in such manner, and in such circumstances, as may be so specified or determined; and
c
for any standard condition included in such a licence which is for the time being suspended to be brought back into operation in such manner and in such circumstances as may be so specified or determined.
6
Subject to subsection (7), each condition which is a standard condition is to be incorporated by reference in each sewerage licence (or in each such licence to which the standard condition applies).
7
Subject to the following provisions of this section, the Authority may, in granting a licence, exclude or modify any of the standard conditions to such extent as the Authority considers requisite to meet the circumstances of a particular case.
8
Before excluding any standard conditions or making any modifications under subsection (7), the Authority must give notice—
a
stating that the Authority proposes to exclude the conditions or make the modifications and setting out the effect of so doing;
b
stating the reasons why the Authority proposes to exclude the conditions or make the modifications; and
c
specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed exclusions or modifications may be made,
and the Authority must consider any representations or objections which are duly made and not withdrawn.
9
A notice under subsection (8) must be given—
a
by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the exclusions or modifications; and
b
by serving a copy of the notice—
i
on the Secretary of State;
ii
on the Environment Agency;
iii
on the NRBW;
iv
on the Water Industry Commission for Scotland.
10
If, within the time specified in the notice under subsection (8), the Secretary of State directs the Authority not to exclude or modify any standard condition, the Authority must comply with the direction.
11
The Authority may not exclude any conditions, or make any modifications, under subsection (7) unless the Authority is of the opinion that the exclusions or modifications are such that—
a
the licence holder would not be unduly disadvantaged in competing with other holders of sewerage licences; and
b
no other holder of a sewerage licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being granted).
12
The modification under subsection (7) of part of a standard condition is not to prevent any other part of the condition from continuing to be treated as a standard condition for the purposes of this Chapter.
17IC1C4C3C2F130Modification of licences by agreement
1
Subject to the following provisions of this section, the Authority may modify the F133conditions of—
a
a particular water supply licence, or
b
a particular sewerage licence.
2
The Authority may not make any modifications under this section unless the licence holder has consented to the modifications and, in the case of standard conditions of the licence, the Authority is of the opinion that the modifications—
a
are requisite to meet the circumstances of the particular case; and
b
are such that—
i
the licence holder would not be unduly disadvantaged in competing with other holders of water supply licences F134or, as the case may be, sewerage licences; and
ii
no other holder of a water supply licence F135or, as the case may be, a sewerage licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified).
3
Before making modifications under this section, the Authority shall give notice—
a
stating that it proposes to make the modifications and setting out their effect;
b
stating the reasons why it proposes to make the modifications; and
c
specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
4
A notice under subsection (3) above shall be given—
a
by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and
b
by serving a copy of the notice on—
i
the licence holder;
ii
the Council;
iii
the Secretary of State;
iv
F132if the notice relates to a water supply licence, the Assembly; and
v
the Chief Inspector of Drinking Water.
5
If, within the period specified in the notice under subsection (3) above, the Secretary of State F136... directs the Authority not to make any modification, the Authority shall comply with the direction.
F1315A
The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water supply licence.
6
The modification under this section of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.
17JC1C4C3C2F96Modification of standard conditions
1
Subject to the following provisions of this section, the Authority F101may modify—
a
the standard conditions of water supply licences, or
b
the standard conditions of sewerage licences.
F971A
Modifications may relate to—
a
standard conditions contained in all water supply licences or sewerage licences, or
b
standard conditions contained in those water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations.
2
3
Before making any modifications under this section, the Authority shall give notice—
a
stating that it proposes to make the modifications and setting out their effect;
b
stating the reasons why it proposes to make the modifications; and
c
specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
4
A notice under subsection (3) above shall be given—
a
by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and
b
by serving a copy of the notice on—
i
each relevant licence holder;
ii
the Council;
iii
the Secretary of State;
iv
F99if the notice relates to a water supply licence, the Assembly; and
v
the Chief Inspector of Drinking Water.
5
If, within the time specified in the notice under subsection (3) above, the Secretary of State F104... directs the Authority not to make any modification, the Authority shall comply with the direction.
F985A
The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water supply licence.
6
The Authority may not under this section make any modifications of the standard conditions of F105water supply licences or sewerage licences unless—
a
no notice of objection to those modifications is given by any relevant licence holder to the Authority within the time specified in the notice under subsection (3) above;
b
if one or more relevant licence holders give notice of objection to the Authority within that time—
i
the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be specified in an order made by statutory instrument by the Secretary of State; and
ii
the percentage given by subsection (7) below is less than such percentage as may be so specified; or
c
subsection (8) below applies to the case.
7
The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share at such time and in such manner as may be specified in an order under subsection (6) above.
8
This subsection applies where the Authority is satisfied that—
a
the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate;
b
the modifications would remove or reduce the burden without removing any necessary protection; and
c
the modifications are such that no holder of a water supply licence F106or, as the case may be, a sewerage licence would be unduly disadvantaged in competing with other holders of such licences.
9
An order under subsection (6) above may include such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.
10
Before making an order under subsection (6) above F100in relation to the standard conditions of water supply licences, the Secretary of State shall consult the Assembly.
11
A statutory instrument containing an order under subsection (6) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
12
Where the Authority modifies the standard conditions of F107water supply licences or sewerage licences, the Authority shall—
a
also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in F109water supply licences or, as the case may be, sewerage licences granted after that time; and
b
publish the modifications in such manner as it considers appropriate.
F108Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.
13
In this section “relevant licence holder”, in relation to proposed modifications of standard conditions of F110water supply licences or sewerage licences or of such of those licences as grant a particular authorisation or combination of authorisations, means the holder of a licence of that description—
a
which is to be modified under the proposals by the inclusion of any new standard condition; or
b
which includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section 17H(4) above) at the time specified in the notice under subsection (3) above.
C11C1C4C3C217KC1C4C3C2F92Modification references to competition authority
1
The Authority may make to the F23CMA a reference which is so framed as to require the F24CMA to investigate and report on the questions—
a
whether any matters which—
i
relate to the carrying on of activities authorised or regulated by F94a particular water supply or sewerage licence; and
ii
are specified in the reference,
operate, or may be expected to operate, against the public interest; and
b
if so, whether the effects adverse to the public interest which those matters have, or may be expected to have, could be remedied or prevented by modifications of the conditions of the licence.
2
The Authority may make to the Commission a reference which is so framed as to require the F27CMA to investigate and report on the questions—
a
whether any matters which—
i
relate to the carrying on of activities authorised or regulated by F95water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations; and
ii
are specified in the reference,
operate, or may be expected to operate, against the public interest; and
b
if so, whether the effects adverse to the public interest which those matters have, or may be expected to have, could be remedied or prevented by modifications of the standard conditions of licences of that description.
3
The Authority may, at any time, by notice given to the F27CMA vary a reference under this section by—
a
adding to the matters specified in the reference; or
b
excluding from the reference some of the matters so specified,
and on receipt of any such notice the F27CMA shall give effect to the variation.
4
The Authority may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the F27CMA in carrying out the investigation on the reference—
a
any effects adverse to the public interest which, in its opinion, the matters specified in the reference or variation have or may be expected to have; and
b
any modifications of the relevant conditions by which, in its opinion, those effects could be remedied or prevented.
5
As soon as practicable after making a reference under this section or a variation of such a reference, the Authority shall—
a
publish particulars of the reference or variation in such manner as it considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it; and
b
serve a copy of the reference or variation on—
i
the licence holder or, as the case may be, the relevant licence holders;
ii
the Council;
iii
the Secretary of State;
iv
F93in a case relating to a water supply licence or licences, the Assembly; and
v
the Chief Inspector of Drinking Water.
6
If, before the end of the period of twenty-eight days beginning with the day on which the Secretary of State receives the copy of the reference or variation, the Secretary of State directs the F25CMA—
a
not to proceed with the reference; or
b
not to give effect to the variation,
the F25CMA shall comply with the direction.
7
It shall be the duty of the Authority, for the purpose of assisting the F25CMA in carrying out an investigation on a reference under this section or in carrying out functions under section 17P below, to give to the F25CMA—
a
any information in the Authority’s possession which relates to matters falling within the scope of the investigation or the carrying out of those functions and which is either—
i
requested by the F25CMA for that purpose; or
ii
information which, in the Authority’s opinion, it would be appropriate for that purpose to give to the F25CMA without any such request; and
b
any other assistance which the F25CMA may require, and which it is within the Authority’s power to give, in relation to any such matters,
and the F25CMA, for the purpose of carrying out any such investigation or such functions, shall take account of any information given to it for that purpose under this subsection.
8
In this section and the following provisions of this Chapter—
“relevant conditions”—
- a
in relation to a reference under subsection (1) above, means the conditions of the licence to which the reference relates; and
- b
in relation to a reference under subsection (2) above, means the standard conditions of the licences to which the reference relates; and
- a
“relevant licence holder” means the holder of a licence to which a reference under subsection (2) above relates.
9
In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the F26CMA shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Authority by Part 1 of this Act.
F2210
The functions of the CMA with respect to a reference under this section 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 2002, as applied by sections 17M and 17Q).
C1C4C3C5C217LC1C4C3C2References under section 17K: time limits
1
Every reference under section 17K above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.
2
A report of the F28CMA on a reference under section 17K above shall not have effect (and no action shall be taken in relation to it under section 17O below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.
3
The Authority may, if it has received representations on the subject from the F28CMA and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.
4
No more than one extension is possible under subsection (3) above in relation to the same reference.
5
The Authority shall, in the case of an extension made by it under subsection (3) above—
a
publish that extension in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and
b
send a copy of what has been published by it under paragraph (a) above to the holder of the licence or, as the case may be, the relevant licence holders.
C1C4C3C5C217MC1C4C3C2References under section 17K: powers of investigation
1
The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections F18(1A), (2) and (3) below, for the purposes of references under section 17K above as they apply for the purposes of references under that Part—
a
section 109 (attendance of witnesses and production of documents etc);
b
section 110 (enforcement of powers under section 109: general);
c
section 111 (penalties);
d
section 112 (penalties: main procedural requirements);
e
section 113 (payments and interest by instalments);
f
section 114 (appeals in relation to penalties);
g
section 115 (recovery of penalties); and
h
section 116 (statement of policy).
F171A
Section 109 shall, in its application by virtue of subsection (1) above, have effect as if—
a
for subsection (A1), there were substituted—
A1
For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with a reference under section 17K of the Water Industry Act 1991.
b
subsection (8A) were omitted.
2
Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—
a
subsection (2) were omitted; F19...
F20aa
after subsection (3), there were inserted—
3A
No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication of the report of the CMA on the reference concerned; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part.
b
in subsection (9) the words from “or section” to “section 65(3))” were omitted.
F213
Section 111(5)(b) shall, in its application by virtue of subsection (1) above, have effect as if for sub-paragraph (ii) there were substituted—
ii
if earlier, the day on which the report of the CMA on the reference concerned is made or, if no such report is made within the period permitted for that purpose, the latest day on which the report may be made within the permitted period.
4
Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection.
5
Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.
C6C1C4C3C217NC1C4C3C2F111Reports on modification references
1
In making a report on a reference under section 17K above, the F6CMA —
a
shall include in the report definite conclusions on the questions comprised in the reference together with such an account of its reasons for those conclusions as in its opinion is expedient for facilitating a proper understanding of those questions and of its conclusions;
b
where it concludes that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and
c
where it concludes that any adverse effects so specified could be remedied or prevented by modifications of the relevant conditions, shall specify in the report modifications by which those effects could be remedied or prevented.
2
For the purposes of section 17O below, a conclusion contained in a report of the F7CMA is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted F8by the chair of the CMA for the purpose of carrying out the functions of the CMA with respect to the reference.
3
If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 17K above as the conclusions of the F9CMA, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.
4
For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the F9CMA on a reference under section 17K above.
5
In making any report on a reference under section 17K above the F9CMA must have regard to the following considerations before disclosing any information.
6
The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the F9CMA thinks is contrary to the public interest.
7
The second consideration is the need to exclude from disclosure (so far as practicable)—
a
commercial information whose disclosure the F9CMA thinks might significantly harm the legitimate business interests of the undertaking to which it relates; or
b
information relating to the private affairs of an individual whose disclosure the F9CMA thinks might significantly harm the individual’s interests.
8
The third consideration is the extent to which the disclosure of the information mentioned in subsection (7)(a) or (b) above is necessary for the purposes of the report.
9
A report of the F10CMA on a reference under section 17K above shall be made to the Authority.
10
Subject to subsection (13) below, the Authority shall—
a
on receiving a report on a reference under section 17K(1) above, serve a copy of it on—
i
the licence holder;
ii
the Council;
iii
the Secretary of State; and
iv
F112if the report relates to a water supply licence, the Assembly; and
b
not earlier than the relevant time, publish another copy of the report in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it.
11
Subject to subsection (13) below, the Authority shall—
a
on receiving a report on a reference under section 17K(2) above, serve a copy of it on—
i
the Secretary of State; and
ii
F113if the report relates to water supply licences, the Assembly; and
b
not earlier than the relevant time—
i
serve another copy on each relevant licence holder; and
ii
not less than twenty-four hours after complying with sub-paragraph (i) above, publish another copy of the report in such manner as it considers appropriate for bringing the report to the attention of persons likely to be affected by it.
12
For the purposes of subsections (10) and (11) above, the “relevant time” means—
a
fourteen days after the copy of the report in question is received by the Secretary of State and F114, if the report relates to water supply licences, the Assembly, or
b
if copies are received by them on different days, fourteen days after the later day.
13
Subsection (14) below applies if it appears to the Secretary of State that the publication of any matter in a report on a reference under section 17K(1) or (2) above would be against—
a
the public interest; or
b
the commercial interests of any person.
14
The Secretary of State may, not later than the relevant time for the purposes of subsection (10) or (11) above, direct the Authority to exclude that matter from the copy of the report, or (as the case may be) each copy of the report, to be served and published as mentioned in paragraph (b) of that subsection; and the Authority shall comply with any such direction.
C7C1C4C3C217OC1C4C3C2F82Modification of licences following report
1
Where a report of the F29CMA on a reference under section 17K above—
a
includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;
b
specifies effects adverse to the public interest which those matters have or may be expected to have;
c
includes conclusions to the effect that those effects could be remedied or prevented by modifications of the relevant conditions; and
d
specifies modifications by which those effects could be remedied or prevented,
the Authority shall, subject to the following provisions of this section, make such modifications of the relevant conditions as appear to it requisite for the purpose of remedying or preventing the adverse effects specified in the report.
2
Where at any time it modifies under subsection (1) aboveF84—
a
the standard conditions of water supply licences or sewerage licences, or
b
the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations,
in consequence of a reference under section 17K(2) above, the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of licences of that description.
3
Before making modifications under this section, the Authority shall have regard to the modifications specified in the report.
4
Before making modifications under this section, the Authority shall give notice—
a
stating that it proposes to make the modifications and setting out their effect;
b
stating the reasons why it proposes to make the modifications; and
c
specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
5
A notice under subsection (4) above shall be given—
a
by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications;
b
by serving a copy of the notice on the holder of the licence in question or, as the case may be, the relevant licence holders; and
c
by serving a copy of the notice on—
i
the Council;
ii
the Secretary of State;
iii
F83in a case relating to a water supply licence or licences, the Assembly; and
iv
the Chief Inspector of Drinking Water.
6
After considering any representations or objections made in response to proposals set out in a notice under subsection (4) above, the Authority shall give notice to the F30CMA—
a
setting out the modifications it proposes to make to remedy or prevent the adverse effects specified in the report; and
b
stating the reasons for making the modifications.
7
The Authority shall include with the notice under subsection (6) above a copy of any representations or objections received in relation to the notice under subsection (4) above.
8
If the period of four weeks from the date on which the notice under subsection (6) above is given elapses without a direction under section 17P(1)(a) below having been given to it, the Authority shall—
a
make the modifications set out in the notice; or
b
if a direction under section 17P(1)(b) below has been given, make the modifications which are not specified in the direction.
9
The modification under subsection (1) above of part of a standard condition of a particular licence in consequence of a reference under section 17K(1) above shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.
10
Where at any time it modifies under subsection (1) above the standard conditions of F85water supply licences or sewerage licences in consequence of a reference under section 17K(2) above, the Authority shall—
a
also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in F87water supply licences or, as the case may be, sewerage licences granted after that time; and
b
publish the modifications made for those purposes in such manner as it considers appropriate.
F86Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.
C1C4C3C12C217PC1C4C3C2F116Power of veto following report
1
The F31CMA may, within the period of four weeks after the date on which it is given a notice under section 17O(6) above, direct the Authority—
a
not to make the modifications set out in that notice; or
b
not to make such of the modifications as may be specified in the direction;
and the Authority shall comply with any such direction.
2
The Secretary of State may—
a
within the period of four weeks after the date on which the F31CMA is given a notice under section 17O(6) above; and
b
on the application of the F31CMA ,
direct that the period for giving a direction under subsection (1) above (and, accordingly, the period mentioned in section 17O(8) above) shall be extended by fourteen days.
3
The power to give a direction under subsection (1) above may only be exercised in respect of such of the modifications set out in the notice under section 17O(6)(a) above as appear to the F31CMA not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications.
4
If the F31CMA gives a direction under subsection (1) above, it shall—
a
give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and
b
make such modifications itself of the relevant conditions as appear to it to be requisite for the purpose of remedying or preventing—
i
if the direction was given under subsection (1)(a) above, the adverse effects specified in the report as effects which could be remedied or prevented by modifications;
ii
if the direction was given under subsection (1)(b) above, such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 17O(8)(b) above.
5
In exercising its power under subsection (4)(b) above the F31CMA shall have regard to the matters as respects which duties are imposed on the Authority by Part 1 of this Act.
6
Before making modifications under subsection (4)(b) above the F31CMA shall give notice—
a
stating that it proposes to make the modifications and setting them out;
b
stating the reason why it proposes to make them;
c
specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
7
A notice under subsection (4)(a) or (6) above shall be given—
a
by publishing the notice in such manner as the F31CMA considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications;
b
by serving a copy of the notice on—
i
the Authority;
ii
the holder of the licence in question or, as the case may be, the relevant licence holders;
iii
the Council;
iv
the Secretary of State;
v
F120if the reference relates to water supply licences, the Assembly; and
vi
the Chief Inspector of Drinking Water.
8
After making modifications under this section the F31CMA shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them.
9
The modification under this section of part of a standard condition of a particular licence in consequence of a reference under section 17K(1) above shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.
10
Where, in consequence of a reference under section 17K(2) above, the F32CMA modifies under subsection (4)(b) aboveF117—
a
the standard conditions of water supply licences or sewerage licences, or
b
the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations,
the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of licences of that description.
11
Where, in consequence of a reference under section 17K(2) above, the F32CMA modifies under subsection (4)(b) above the standard conditions of F118water supply licences or sewerage licences, the Authority shall—
a
make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in F121water supply licences or, as the case may be, sewerage licences granted after that time, and
b
publish the modifications made for those purposes in such manner as it considers appropriate.
F119Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.
C8C1C4C3C217QC1C4C3C2Section 17P: supplementary
1
For the purposes of the law relating to defamation, absolute privilege attaches to any notice under subsection (4)(a), (6) or (8) of section 17P above.
2
In giving any notice under subsection (4)(a) or (6) of section 17P above, or publishing any notice under subsection (8) of that section, the F15CMA must have regard to the following considerations before disclosing any information.
3
The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the F15CMA thinks is contrary to the public interest.
4
The second consideration is the need to exclude from disclosure (so far as practicable)—
a
commercial information whose disclosure the F15CMA thinks might significantly harm the legitimate business interests of the undertaking to which it relates; or
b
information relating to the private affairs of an individual whose disclosure the F15CMA thinks might significantly harm the individual’s interests.
5
The third consideration is the extent to which the disclosure of the information mentioned in subsection (4)(a) or (b) above is necessary for the purposes of the notice.
6
The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections F12(6A), (7) and (8) below, for the purposes of any investigation by the F13CMA for the purposes of the exercise of its functions under section 17P above, as they apply for the purposes of any investigation on references under that Part—
a
section 109 (attendance of witnesses and production of documents etc);
b
section 110 (enforcement of powers under section 109: general);
c
section 111 (penalties);
d
section 112 (penalties: main procedural requirements);
e
section 113 (payments and interest by instalments);
f
section 114 (appeals in relation to penalties);
g
section 115 (recovery of penalties); and
h
section 116 (statement of policy).
F116A
Section 109 shall, in its application by virtue of subsection (6) above, have effect as if—
a
for subsection (A1), there were substituted—
A1
For the purposes of this section, a permitted purpose is assisting the CMA in carrying out any functions exercisable by it in connection with an investigation for the purposes of the exercise of its functions under section 17P of the Water Industry Act 1991.
b
subsection (8A) were omitted.
7
Section 110 shall, in its application by virtue of subsection (6) above, have effect as if—
a
subsection (2) were omitted,
F16b
after subsection (3), there were inserted—
3A
No penalty shall be imposed by virtue of subsection (1) or (3) if more than 4 weeks have passed since the publication by the CMA of a notice under section 17P(9) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction has been given by the CMA under section 17P(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which it was possible to give such a direction within the permitted period; but this subsection shall not apply in relation to any variation or substitution of the penalty which is permitted by virtue of this Part.
c
in subsection (9) the words from “or section” to “section 65(3))” were omitted.
8
Section 111(5)(b) shall, in its application by virtue of subsection (6), have effect as if for sub-paragraph (ii) there were substituted—
ii
if earlier, the day on which a notice is published by the F14CMA under section 17P(8) of the Water Industry Act 1991 in connection with the reference concerned or, if no direction is given by the F14CMA under section 17P(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which such a direction may be given within the permitted period.
9
Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (6) above, have effect in relation to those sections as applied by virtue of that subsection.
10
Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.
C1C4C3C9C217RC1C4C3C2F122Modification by order under other enactments
1
Where the F33CMA or the Secretary of State (the “relevant authority”) makes a relevant order, the order may also provide for the modification of—
F123a
the conditions of a particular water supply or sewerage licence,
b
the standard conditions of water supply licences or sewerage licences, or
c
the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations,
to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order.
2
In subsection (1) above “relevant order” means—
a
an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where—
i
one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by F125a water supply licence or sewerage licence; or
ii
one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by F126a water supply licence or sewerage licence; or
b
an order under section 160 or 161 of that Act where the feature, or combination of features, of the market F34or markets in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to activities authorised or regulated by F124a water supply licence or sewerage licence.
3
The modification under subsection (1)(a) above of part of a standard condition of a particular licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.
4
Where at any time the relevant authority modifies under F127subsection (1)(b) or (c) above F128the standard conditions of water supply licences or sewerage licences or of water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations, the relevant authority—
a
shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that description granted after that time; and
b
may, after consultation with the Authority, make such incidental or consequential modifications as the relevant authority considers necessary or expedient of any conditions of licences of that description granted before that time.
5
Where at any time the relevant authority modifies standard conditions of F129water supply licences or sewerage licences under subsection (4)(a) above for the purposes of their incorporation in licences, the relevant authority shall publish those modifications in such manner as the relevant authority considers appropriate.
6
Expressions used in subsection (2) above and in Part 3 or 4 of the Enterprise Act 2002 have the same meaning in that subsection as in that Part.
Pt. 2 Ch. 1A inserted (1.4.2004 for specified provisions and purposes and 1.8.2005 for further specified provisions and purposes and 1.10.2005 for further specified provisions and 1.12.2005 otherwise) by Water Act 2003 (c. 37), ss. 56, 105(3), Sch. 4 para. 2; S.I. 2004/641, art. 3(l), Sch. 1 (with art. 6, Sch. 3); S.I. 2005/968, art. 3(b) (with savings in art. 4, Sch. 1, 2); S.I. 2005/2714, arts. 2(h), 3(a) (with Sch. para. 5)