The Water Mergers (Modification of Enactments) Regulations 2004

Section 30: Relevant customer benefits

6.  Part 3 of the 2002 Act has effect as if, for section 30 (relevant customer benefits), there were substituted—

“Relevant customer benefits in relation to water mergers

30— (1) For the purposes of this Part a benefit is a relevant customer benefit if—

(a) it is a benefit to relevant customers in the form of—

(i) lower prices, higher quality or greater choice of goods or services in any market in the United Kingdom (whether or not the market or markets in relation to which the prejudice to the Authority has, or may have, occurred or (as the case may be) may occur); or

(ii) greater innovation in relation to such goods or services; and

(b) the Commission believes—

(i) in the case of a merger reference under section 32(a) of the 1991 Act, as mentioned in subsection (2); and

(ii) in the case of a merger reference under section 32(b) of the 1991 Act, as mentioned in subsection (3).

(2) The belief, in the case of a merger reference under section 32(a) of the 1991 Act, is that—

(a) the benefit may be expected to accrue within a reasonable period as a result of the merger concerned; and

(b) the benefit is unlikely to accrue without the merger concerned or a similar prejudice to the Authority.

(3) The belief, in the case of a merger reference under section 32(b) of the 1991 Act, is that—

(a) the benefit has accrued as a result of the merger concerned or may be expected to accrue within a reasonable period as a result of the merger concerned; and

(b) the benefit was, or is, unlikely to accrue without the merger concerned or a similar prejudice to the Authority.

(4) In subsection (1) “relevant customers” means—

(a) customers of any person carrying on an enterprise which, in the merger concerned, has ceased to be, or (as the case may be) will cease to be, a distinct enterprise;

(b) customers of such customers; and

(c) any other customers in a chain of customers beginning with the customers mentioned in paragraph (a);

and in this subsection “customers” includes future customers.

(5) For the purposes of subsection (1) “market in the United Kingdom” includes—

(a) so far as it operates in the United Kingdom or a part of the United Kingdom, any market which operates there and in another country or territory or in a part of another country or territory; and

(b) any market which operates only in a part of the United Kingdom;

and references to a market for goods or services include references to a market for goods and services.”.