The Water Supply Licence (New Customer Exception) Regulations 2005

New customer exception

3.—(1) Where a licensed water supplier who has entered into an undertaking with a person (A) to give a supply of water to any premises subsequently enters into an undertaking with another person (B) to give a supply of water to those premises, the licensed water supplier is not, for the purposes of section 17D(2) of the Act, to be treated as entering into an undertaking with a new customer to give a supply of water to those premises if—

(a) in a case where A and B are interconnected bodies corporate, the condition in paragraph (2) is satisfied or the condition referred to in sub-paragraph (b) is satisfied; or

(b) in any other case, the condition in paragraph (3) is satisfied.

(2) The condition referred to in paragraph (1)(a) is that—

(a) at the time the undertaking was entered into with A, the whole of the premises was occupied for the purposes of a business by a member of the group of interconnected bodies corporate of which A and B are members; and

(b) at the time that the undertaking is entered into with B–

(i) the whole of the premises is occupied for the purposes of a business by a member of the group of interconnected bodies corporate of which A and B are members;

(ii) the business referred to in sub-paragraph (i) is the same as that which was being carried on immediately before the undertaking with A ceased to apply;

(iii) the member referred to in sub paragraph (i) intends to carry on that business for at least the duration of the undertaking with B; and

(iv) the volume of water estimated to be supplied to the premises annually pursuant to the undertaking with B is the same as, or more than, that which was supplied under the undertaking with A in the year ending when that undertaking ceased to apply.

(3) The condition referred to in paragraph (1)(b) is that—

(a) the whole of the premises is occupied by B, and immediately before B’s occupation was occupied by A, for the purposes of a business; and

(b) at the time that the undertaking is entered into with B–

(i) B’s business referred to in sub-paragraph (a) is the same as that which was being carried on by A immediately before A ceased to occupy the premises;

(ii) B intends to carry on that business for at least the duration of that undertaking; and

(iii) the volume of water estimated to be supplied to the premises annually pursuant to that undertaking is the same as, or more than, that which was supplied under the undertaking with A in the year ending when that undertaking ceased to apply.