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3.—(1) Subject to paragraph (2), section 66I(1) of the Act shall not apply where—
(a)a water undertaker (“A”) is using the supply system of another water undertaker (“B”) under an agreement for a supply of water in bulk(1) by B to A;
(b)A is using B’s supply system under any enactment requiring that a supply of water in bulk be made by B to A; or
(c)a relevant person (“C”) is using the supply system of a water undertaker (“D”) pursuant to a relevant undertaking for the purpose of making a private supply to any premises.
(2) Paragraph (1)(a) shall not apply in so far as—
(a)A uses B’s supply system for the purpose of supplying water to premises within the geographical area to which A’s appointment relates; and
(b)the water has been introduced into B’s supply system for that purpose by A or by any relevant person under an agreement with A.
(3) For the purposes of this regulation—
(a)“relevant person” means–
(i)in paragraph (1)(c), a person who is not a water undertaker or a licensed water supplier; and
(ii)in paragraph (2)(b), a person other than A or B; and
(b)“relevant undertaking” means an undertaking entered into by D with C before 31st July 2002 under which a supply of water was made by D to C before that date.
The expression “supply of water in bulk” has the meaning given by section 219(1) of the Act.
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