PART 2Exit applications

Determination of applications and conditions

Determination of application11

1

The Secretary of State must determine an exit application by granting or refusing the relevant undertaker permission to withdraw from the non-household retail market in accordance with the application.

2

The Secretary of State must grant permission unless—

a

it would be contrary to the interests of the public or a section of the public to grant permission, or

b

the relevant undertaker has failed to comply with regulation 9 and the Secretary of State considers it appropriate to refuse permission because of that failure.

3

When granting permission, the Secretary of State—

a

must impose the customer notification condition set out in regulation 12, and

b

may impose other conditions.

4

The conditions that may be imposed include—

a

a condition requiring an acquiring licensee to elect to be an eligible water supply licensee for the purposes of section 63AC of the 1991 Act12;

b

a condition requiring an acquiring licensee to elect to be an eligible sewerage licensee for the purposes of section 110L of the 1991 Act13;

c

a condition requiring the relevant undertaker to provide proof, before the exit date, that other conditions have been met.

5

The Secretary of State need not determine an exit application until the relevant undertaker has complied with any requirement to provide further information under regulation 10.

6

Section 195A of the 1991 Act (reasons for decisions)14 applies as if the making of a determination under paragraph (1) were included in the list of decisions in subsection (1) of that section.

Customer notification condition for relevant undertakers12

1

This regulation sets out the customer notification condition for the purposes of regulation 11(3)(a).

2

The customer notification condition is a condition requiring the relevant undertaker to take reasonable steps to notify each affected customer of its intention to withdraw from the non-household retail market.

3

The notice must—

a

explain in general terms what is happening to the supply of water or the provision of sewerage services to the customer’s premises and why;

b

give an overview of the terms and conditions that will apply in relation to the customer following the exit date and how to obtain further information;

c

give the name and contact details of the acquiring licensee in relation to the customer’s premises;

d

explain the effect of regulation 17 on any outstanding complaints against the relevant undertaker;

e

give the customer information about how to switch supplier and where to find information about other potential suppliers.

4

The notice must be given—

a

in the case of a person who is a customer immediately before the Secretary of State grants permission for the relevant undertaker to withdraw from the non-household retail market, at least 2 months before the exit date;

b

in the case of a person who becomes a customer after the Secretary of State grants permission, as soon as possible.