Part II APPOINTMENTMENT AND REGULATION OF UNDERTAKERS

F1CHAPTER 1AWater supply licences and sewerage licences

Licence conditions

17KF2Modification references to competition authority

(1)

The Authority may make to the F3CMA a reference which is so framed as to require the F4CMA to investigate and report on the questions—

(a)

whether any matters which—

(i)

relate to the carrying on of activities authorised or regulated by F5a 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 F6CMA to investigate and report on the questions—

(a)

whether any matters which—

(i)

relate to the carrying on of activities authorised or regulated by F7water 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 F6CMA 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 F6CMA 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 F6CMA 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)

F8in 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 F9CMA—

(a)

not to proceed with the reference; or

(b)

not to give effect to the variation,

the F9CMA shall comply with the direction.

(7)

It shall be the duty of the Authority, for the purpose of assisting the F9CMA in carrying out an investigation on a reference under this section or in carrying out functions under section 17P below, to give to the F9CMA—

(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 F9CMA for that purpose; or

(ii)

information which, in the Authority’s opinion, it would be appropriate for that purpose to give to the F9CMA without any such request; and

(b)

any other assistance which the F9CMA may require, and which it is within the Authority’s power to give, in relation to any such matters,

and the F9CMA, 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

“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 F10CMA 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.

F11(10)

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).