The Water and Sewerage Undertakers (Exit from Non-household Retail Market) Regulations 2016

Effect on relevant undertakers

Prohibition on supply of water, or provision of sewerage services, by undertakers

20.—(1) A relevant undertaker is prohibited from supplying water or providing sewerage services to non-household premises in a retail exit area at any time on or after the exit date.

(2) Regulations 23 and 24 contain exceptions to that prohibition in relation to the relevant undertaker that made the relevant exit application.

(3) A prohibition imposed by this regulation is enforceable under section 18 of the 1991 Act.

Effect of inset appointment on retail exit area

21.—(1) This regulation applies when—

(a) a company is appointed under section 6(1) of the 1991 Act(1) to be the relevant undertaker for a new inset area; or

(b) the area of appointment of a relevant undertaker that has not withdrawn from the non-household retail market is varied, in accordance with section 7(2) of the 1991 Act(2), to include a new inset area.

(2) When the appointment or the variation takes effect the new inset area is no longer part of a retail exit area.

(3) In this regulation, “new inset area” means an area—

(a) which is part of a retail exit area; and

(b) none of the premises in which is served by a relevant undertaker.

Expansion of retail exit area – inset appointments

22.—(1) This regulation applies when the area of appointment of a relevant undertaker that has withdrawn from the non-household retail market is varied, in accordance with section 7(2) of the 1991 Act, to include an area (“the new inset exit area”)—

(a) which is not part of a retail exit area; and

(b) none of the premises in which is served by a relevant undertaker.

(2) Regulations 20(1) and (3), 23 and 29 to 60 apply to the new inset exit area as they apply to a retail exit area.

Exiting undertakers may continue to supply their own premises

23.—(1) A water undertaker is not prohibited by regulation 20(1) from supplying water to premises which are owned by the undertaker and which form part of its supply system.

(2) A sewerage undertaker is not prohibited by regulation 20(1) from providing sewerage services to premises which are owned by the undertaker and which form part of its sewerage system.

Exiting undertaker’s ongoing responsibility for customers in the process of switching

24.  A relevant undertaker is not prohibited by regulation 20(1) from supplying water or providing sewerage services to premises if—

(a) notice under section 63AA or 110K of the 1991 Act(3) was served on the undertaker in relation to the premises before the exit date, and

(b) the time specified in the notice falls within the period of 28 days beginning with the exit date and has not yet passed.

Modification of appointment of exiting undertaker

25.—(1) The WSRA may modify the conditions of appointment of a company as a relevant undertaker under Chapter 1 of Part 2 of the 1991 Act where it considers it necessary or expedient to do so in consequence of the transfer of part of the relevant undertaker’s undertaking under these Regulations.

(2) Where the WSRA modifies conditions of an appointment under this regulation, it may make such incidental or consequential modifications of other conditions of the appointment as it considers necessary or expedient.

(3) Before making a modification under this regulation, the WSRA must consult—

(a) the company holding the appointment, and

(b) such other persons as the WSRA thinks it appropriate to consult.

(4) The power of the WSRA under this regulation to modify the conditions of an appointment may not be exercised after the end of the period of one year beginning with the exit date.

(5) Section 195A of the 1991 Act (reasons for decisions) applies as if the modification of the conditions of an appointment under this regulation were included in the list of decisions in subsection (1) of that section.

(1)

Section 6(1) was amended by section 36(2) of the Water Act 2003 (c. 37).

(2)

Section 7(2) was amended by section 36(2) of the Water Act 2003.

(3)

Section 63AA was inserted by paragraph 17 of Schedule 8 to the Water Act 2003. It is prospectively amended by paragraph 63 of Schedule 7 to the Water Act 2014 (c.21) from a date to be appointed. Section 110K is prospectively inserted by section 32 of the Water Act 2014 from a date to be appointed.