75A Commissioner’s advice on charges.

1

The Commissioner shall, when required by the Secretary of State, advise him on the matters to be taken into, or left out of, account by the new water and sewerage authorities in fixing charges in charges schemes (within the meaning of section 76(1) of this Act).

2

The advice—

a

shall, as the Secretary of State requires, relate to authorities generally or to a particular authority,

b

shall apply in relation to charges schemes made during such period as the Secretary of State may specify (in this section referred to as “the period of the advice”).

3

In preparing his advice the Commissioner shall have regard to—

a

the economy, efficiency and effectiveness with which authorities are using their resources in exercising their functions,

b

the likely cost to each authority, for the period of the advice, of exercising the functions mentioned in subsection (4) below,

c

the likely borrowing capacity of each authority for the period of the advice,

d

any guidance issued to authorities by the Secretary of State, and

e

any directions issued under section 116 or 117 of this Act.

4

The functions referred to in subsection (3)(b) above are—

a

complying with any duty to which an authority are subject by virtue of any enactment,

b

complying with any such duty to which they will, or are likely to, become subject during the period of the advice, and

c

providing services to their customers at the same standard, and protection of the environment at the same level, as those at the time when the advice is given, or at such other standard or level as the Secretary of State may specify.

5

The Secretary of State shall, within three months of receiving from the Commissioner advice under subsection (1) above—

a

accept the advice, with or without modifications, or

b

reject the advice and substitute his own advice for it.

6

Where the Secretary of State accepts the Commissioner’s advice with modifications or rejects it, he shall give reasons for doing so.

7

The Commissioner shall arrange for the publication, in such manner as he considers appropriate, of advice as accepted, modified or substituted under subsection (5) above, together with any reasons given under subsection (6) above.