[20CProposals for bulk supply arrangementsE+W
(1)In the circumstances mentioned in subsection (2) below, the [appropriate agency] may, in carrying out its functions under section 6(2) [or, as the case may be, section 6(2A)] of the 1995 Act, propose to a qualifying person (within the meaning of section 40 of the Water Industry Act 1991) that he make an application under that section for a bulk supply of water from a water undertaker.
(2)The circumstances referred to in subsection (1) above are that it appears to the [appropriate agency] that such a bulk supply is necessary in order to secure the proper use of water resources.
(3)The [appropriate agency] shall not make such a proposal without first consulting the Water Services Regulation Authority.
(4)The [appropriate agency] may include in its proposal the period for which, and terms and conditions on which, the [appropriate agency] considers it appropriate that the bulk supply should be given.]