Water Resources Act 1991

[F1 61A Recovery of compensation from new licence-holder E+W

(1) This section applies where compensation has been paid under section 61 above to the holder of a licence (“licence A”) following its revocation, and—

(a) the holder of licence A was a water undertaker;

(b) at the time of the revocation an application from a qualifying person for a licence to abstract water (“licence B”) was outstanding;

(c) if the [F2 appropriate agency] had granted licence B while licence A still had effect, the [F2 appropriate agency] would have been in breach of the duty imposed on it by section 39(1) above owed to the holder of licence A;

(d) the ground for revoking licence A was that the [F2 appropriate agency] was of the view that in the interests of greater efficiency in the use of water resources it would be better for licence B to be granted and licence A revoked; and

(e) the [F2 appropriate agency] proposes to grant licence B.

(2) If this section applies, the [F2 appropriate agency] may (if licence B is granted) recover from the qualifying person the amount of the compensation referred to in subsection (1) above (or such lesser amount as the [F2 appropriate agency] determines).

(3) Subsection (6) of section 41 of the 1995 Act (which confers powers to make schemes imposing charges) shall apply to the amount referred to in subsection (2) above as if it were a charge due and payable to the [F2 appropriate agency] in respect of the subsistence of licence B.

(4) In this section, “qualifying person” means—

(a) a water undertaker; or

(b) a person who has made an application for an appointment or variation replacing a company as a water undertaker under section 8 of the Water Industry Act 1991 which has not been determined.]

Textual Amendments

F1 S. 61A inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 26, 105(3); S.I. 2004/2528, art. 2(a) (with Sch. paras. 1, 8)

F2 Words in s. 61A substituted (1.4.2013) by The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755), art. 1(2), Sch. 2 para. 270(k) (with Sch. 7)