The Water Act 2014 (Commencement No. 9 and Transitional Provisions) Order 2017

This Order may be cited as the Water Act 2014 (Commencement No. 9 and Transitional Provisions) Order 2017.

In this Order—

• “the 1991 Act” means the Water Industry Act 19912;

• “the 2014 Act” means the Water Act 2014;

• “the Authority” means the Water Services Regulation Authority;

• “new retail authorisation” means a retail authorisation given by a new water supply licence;

• “new supplementary authorisation” means a supplementary authorisation given by a new water supply licence;

• “new water supply licence” means a water supply licence granted under new section 17A of the 1991 Act3 and “new water supply licensee” is to be construed accordingly;

• “new wholesale authorisation” means a wholesale authorisation given by a new water supply licence;

• “old water supply licence” means a water supply licence granted under old section 17A of the 1991 Act4 and “old water supply licensee” is to be construed accordingly;

• “relevant undertaker” means a water undertaker or a sewerage undertaker;

• “threshold requirement” is to be construed in accordance with old section 17D of the 1991 Act5, as the requirement applies to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in England.

Until new section 66B(1) of the 1991 Act comes into force, old section 66B of the 1991 Act applies as if the modifications in paragraphs (2) to (8) have effect.

A reference to a qualifying licensed water supplier is to be treated as a reference to a qualifying water supply licensee.

A reference to a retail authorisation is to be treated as a reference to a restricted retail authorisation given by a new water supply licence, or a new retail authorisation, as appropriate.

A reference to the supply system of a water undertaker is to be treated as a reference to the supply system of a water undertaker as it is described in old section 17B of the 1991 Act9.

Old section 66D(1) of the 1991 Act applies in relation to a case referred to the Authority for a determination as to whether any condition specified in old section 66B(5) or (6) of the 1991 Act is satisfied and a reference to a licensed water supplier in old section 66D(1) of the 1991 Act is to be treated as a reference to a qualifying water supply licensee.

A reference to the Secretary of State, except in old section 66B(9) of the 1991 Act, is to be treated as a reference to the Welsh Ministers in relation to a water undertaker whose area is wholly or mainly in Wales or in relation to a qualifying water supply licensee with a new supplementary authorisation.

In this article, “qualifying water supply licensee” means a new water supply licensee with a new supplementary authorisation or a new wholesale authorisation.

Subject to paragraphs (2) to (5), an old section 66D agreement ceases to have effect after 31st March 2017.

The Authority may vary or terminate an old section 66D agreement by order, on application by the new water supply licensee who is a party to the agreement.

Old section 66E of the 1991 Act11 applies for the purpose of determining charges payable under an old section 66D agreement and a reference in old section 66E of the 1991 Act to a licensed water supplier is to be treated as a reference to a new water supply licensee.

In this article—

• “old section 66D agreement” means such agreement or determination as is mentioned in old section 66D(3) of the 1991 Act13;

• “old supplementary authorisation” means an authorisation as defined in old section 17A(5) of the 1991 Act given by an old water supply licence.

Until new section 66B(1) of the 1991 Act comes into force, paragraphs (2) to (5) have effect in relation to a new wholesale authorisation.

The threshold requirement must be satisfied in relation to the supply of water to any premises, where the supply to those premises is made in connection with the introduction of water into the supply system of a water undertaker under a new wholesale authorisation.

Any guidance issued by the Authority under old section 17D(3) of the 1991 Act17 is to apply to estimates of the quantity of water to be supplied to any premises in accordance with a new wholesale authorisation as it does for any estimate for the purposes of old section 17D(2) of the 1991 Act.

Until new section 66B(1) of the 1991 Act comes into force, paragraphs (2) to (4) have effect in relation to a request under new section 66C(1), (2) or (3) of the 1991 Act to a secondary water undertaker.

The supply of water to any premises, using the primary water undertaker’s supply system must be made in accordance with the requesting water supply licensee’s new retail authorisation.

The threshold requirement must be satisfied in relation to the supply of water to any premises, where the supply to those premises is made in connection with the introduction of water into the supply system of a water undertaker by way of secondary supply.

A reference to the supply system of a water undertaker is to be treated as a reference to the supply system of a water undertaker as it is described in old section 17B of the 1991 Act.

In this article—

• “primary water undertaker” has the meaning given in new section 66C(11) of the 1991 Act;

• “secondary supply” means the provision by a secondary water undertaker of a supply of water so that water may be supplied to particular premises, using the primary water undertaker’s supply system;

• “secondary water undertaker” has the meaning given in new section 66C(1) of the 1991 Act.

Paragraph (2) applies where an old water supply licensee has entered into an undertaking with a customer before 1st April 2017 to give a supply of water to any premises.

If the old water supply licensee holds a new water supply licence on 1st April 2017, the undertaking referred to in paragraph (1) is to be treated as if it was entered into under that new water supply licence.

The transitional arrangement provided for in paragraph (1)(b) ends on 31st March 2023 and from 1st April 2023 the new charging rules must be used as the basis for the calculation of charges.

In this article—

• “new charging rules” means rules about charges issued by the Authority under section 144ZA of the 1991 Act21;

• “relevant conditions” means—

  1. a

     in relation to the duty of a water undertaker under section 41 of the 1991 Act22 to provide a water main, the conditions specified in old section 42 of the 1991 Act23;

  2. b

     in relation to the service of a connection notice on a water undertaker under section 45 of the 1991 Act24, such conditions as the water undertaker may have imposed under old sections 47 to 50 of the 1991 Act25;

  3. c

     in relation to the duty of a sewerage undertaker under section 98 of the 1991 Act26 to provide a public sewer or lateral drain, the conditions specified in old section 99 of the 1991 Act27;

  4. d

     in relation to the provision of a lateral drain in accordance with section 101B of the 1991 Act28 following provision of a public sewer, the condition that a request has been made under old section 101B of the 1991 Act29;

  5. e

     in relation to the making by a sewerage undertaker of a communication with one of its public sewers in accordance with section 107 of the 1991 Act30, the condition that a person has given a sewerage undertaker notice under old section 106 of the 1991 Act31 proposing to make a communication between a drain or sewer and such a public sewer of that undertaker;

  6. f

     in relation to the duty of a relevant undertaker under section 185 of the 1991 Act32 to move a relevant pipe or other apparatus, the condition that a notice has been served on the relevant undertaker under old section 185 of the 1991 Act;

• “relevant provisions of the 2014 Act” means—

  1. a

     sections 18 to 20 of the 2014 Act; and

  2. b

     paragraphs 7, 54 to 57 and 87 to 89 of Schedule 7 to the 2014 Act.

Before 1st April 2018, old section 51C of the 1991 Act33 continues to have effect in relation to a section 51A agreement.

The transitional arrangements provided for in paragraphs (2)(d) and (3)(d) end on 31st March 2023 and from 1st April 2023 the new charging rules must be used as the basis for the calculation of charges.

In this article—

• “new charging rules” means rules about charges issued by the Authority under section 51CD or 105ZF of the 1991 Act38;

• “section 51A agreement” means an agreement between a water undertaker and a person constructing or proposing to construct a water main or a service pipe made under either old section 51A of the 1991 Act39 or new section 51A of the 1991 Act40;

• “section 104 agreement” means an agreement between a sewerage undertaker and a person constructing or proposing to construct a sewer, a drain or a sewage disposal works made under old section 104 of the 1991 Act41 or new section 104 of the 1991 Act42.