Part II APPOINTMENTMENT AND REGULATION OF UNDERTAKERS

CHAPTER I APPOINTMENTS

Conditions of appointments

12 Determinations under conditions of appointment.

1

Without prejudice to the generality of paragraph (a) of section 11(1) above, conditions included in an appointment by virtue of that paragraph may—

a

require the appointed company to comply with any direction given by F13the 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 F13the 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 Secretary of State or F13the Authority; or

b

on a reference by F13the Authority, the F9CMA,

of such questions arising under the appointment and of such other matters, including (in the case of references to F10the CMA ) disputes as to determinations by F13the 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 F7CMA in pursuance of a provision contained in an appointment under this Chapter—

a

it shall be the duty of F13the Authority, on being required to do so by the company holding that appointment, to refer that question or matter to F8the CMA; and

b

it shall be the duty of F8the CMA to determine any question or other matter referred by virtue of paragraph (a) above in accordance with—

F1i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ii

the principles which apply, by virtue of Part I of this Act, in relation to determinations under this Chapter by F13the Authority.

F23A

For the purposes of subsection (3) above, 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

the F5CMA 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,

the F5CMA 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.

3B

Subsections (4) and (5) of section 14, and F11sections 14A and 14B, below apply to references to the F6CMA under this section as they apply to references under section 14.

3C

A report of the F6CMA on a reference under this section—

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 their reasons for those conclusions as, in the opinion of the F6CMA , is expedient for facilitating a proper understanding of those questions or other matters and of their conclusions,

and subsections (5) and (6) of section 15 below apply to such a report as they apply to a report on a reference under section 14.

F43D

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 subsection (3B) read with section F1214B).

F34

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F35

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