Water Act 2014

JurisdictionUK Non-devolved
Citation2014 c. 21


Water Act 2014

2014 CHAPTER 21

An Act to make provision about the water industry; about compensation for modification of licences to abstract water; about main river maps; about records of waterworks; for the regulation of the water environment; about the provision of flood insurance for household premises; about internal drainage boards; about Regional Flood and Coastal Committees; and for connected purposes.

[14th May 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

1 Water industry

Part 1

Water industry

CHAPTER 1

Water supply licences and sewerage licences

Expansion of water supply licensing

Expansion of water supply licensing

S-1 Types of water supply licence and arrangements with water undertakers

1 Types of water supply licence and arrangements with water undertakers

(1) For section 17A of the Water Industry Act 1991 there is substituted-

"17A Water supply licences

(1) The Authority may grant to a person a licence in respect of the use of the supply system of a water undertaker (a "water supply licence").

(2) A water supply licence may give the holder of the licence one or more of the following authorisations and combination of authorisations-

(a) a retail authorisation;

(b) a wholesale authorisation;

(c) a restricted retail authorisation;

(d) a restricted retail authorisation and a supplementary authorisation.

(3) Schedule 2A makes provision as to the authorisations (including their operation in England and Wales).

(4) In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 3.

(5) The Authority may exercise the power to grant a water supply licence only in accordance with a general authorisation given by the Secretary of State.

(6) Before giving a general authorisation as regards the Authority, the Secretary of State must consult the Welsh Ministers.

(7) References in this Act to a water supply licensee are references to a person that is the holder for the time being of a water supply licence.

17AA Water supply licences: restrictions on grants

(1) Before the Authority grants a water supply licence giving a wholesale authorisation, it must consult-

(a) the Secretary of State;

(b) the Chief Inspector of Drinking Water;

(c) the Environment Agency;

(d) the NRBW.

(2) Before the Authority grants a water supply licence giving a supplementary authorisation, it must consult-

(a) the Secretary of State;

(b) the Chief Inspector of Drinking Water;

(c) the Environment Agency;

(d) the Welsh Ministers;

(e) the Chief Inspector of Drinking Water for Wales if there is one;

(f) the NRBW.

(3) A water supply licence may not be granted to a water undertaker.

(4) A water supply licence may not be granted to a person unless that person is a limited company.

(5) The restriction in subsection (4) does not apply if the water supply licence gives only-

(a) a retail authorisation,

(b) a restricted retail authorisation, or

(c) a retail authorisation and a restricted retail authorisation."

(2) After Schedule 2 to the Water Industry Act 1991 there is inserted the Schedule set out in Schedule 1.

(3) Schedule 2 (which amends Chapter 2A of Part 3 of the Water Industry Act 1991 which relates to water undertakers' duties to enable operations of water supply licensees) has effect.

S-2 The supply system of a water undertaker

2 The supply system of a water undertaker

(1) Section 17B of the Water Industry Act 1991 (guidance and interpretation) is amended as follows.

(2) After subsection (4) there is inserted-

"(4A) In this Chapter, references to the supply system of a water undertaker are, in the case of an undertaker whose area is wholly or mainly in England, references to the system comprising the following-

(a) any reservoirs and other places of storage and any treatment works developed or maintained by the water undertaker for the purpose of complying with its duty under section 37, and

(b) any water mains and other pipes which it is the water undertaker's duty to develop and maintain by virtue of section 37."

(3) In subsection (5) (interpretation of references to the supply system of a water undertaker), after "undertaker are" there is inserted ", in the case of an undertaker whose area is wholly or mainly in Wales,".

S-3 The threshold requirement

3 The threshold requirement

(1) The Secretary of State may by order made by statutory instrument repeal section 17A(3)(b) of the Water Industry Act 1991 (the threshold requirement affecting premises in England and Wales), so far as it relates to premises supplied using the supply system of a water undertaker whose area is wholly or mainly in England.

(2) The Welsh Ministers may by order made by statutory instrument repeal section 17A(3)(b) of the Water Industry Act 1991, so far as it relates to premises supplied using the supply system of a water undertaker whose area is wholly or mainly in Wales.

(3) The references in subsections (1) and (2) to section 17A of the Water Industry Act 1991 are to the section 17A that is to be repealed (by substitution) by section 1 of this Act.

(4) The Welsh Ministers may by order made by statutory instrument repeal paragraph 7(b) of Schedule 2A to the Water Industry Act 1991 (inserted by Schedule 1 to this Act).

(5) An order under subsection (1), (2) or (4) may make such amendments of the Water Industry Act 1991 and this Act as are necessary or appropriate in consequence of the repeal made by the order.

(6) A statutory instrument containing an order to be made by the Secretary of State under subsection (1) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(7) A statutory instrument containing an order to be made by the Welsh Ministers under subsection (2) or (4) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

Introduction of sewerage licences

Introduction of sewerage licences

S-4 Types of sewerage licence and arrangements with sewerage undertakers

4 Types of sewerage licence and arrangements with sewerage undertakers

(1) After section 17B of the Water Industry Act 1991 there is inserted-

"17BA Sewerage licences

(1) The Authority may grant to a person a licence in respect of the use of the sewerage system of a sewerage undertaker whose area is wholly or mainly in England (a "sewerage licence").

(2) A sewerage licence may give the holder of the licence one or more of the following-

(a) a retail authorisation;

(b) a wholesale authorisation;

(c) a disposal authorisation.

(3) Schedule 2B makes provision as to the authorisations.

(4) In the case of each of the authorisations, an authorisation to do a thing is an authorisation to do it in accordance with Chapter 2A of Part 4.

(5) The Authority may exercise the power to grant a sewerage licence only in accordance with a general authorisation given by the Secretary of State.

(6) References in this Act to a sewerage licensee are references to a person that is the holder for the time being of a sewerage licence.

(7) References in this Chapter to the sewerage system of a sewerage undertaker are references to the system comprising-

(a) the system of public sewers, the facilities for emptying public sewers and the sewage disposal works and other facilities for dealing effectually with the contents of public sewers that the undertaker is required to provide by section 94, and

(b) the lateral drains that the undertaker is required to maintain by section 94.

17BB Sewerage licences: restrictions on grants

(1) The Authority must consult the Secretary of State, the Environment Agency and the NRBW before granting a licence that gives-

(a) a wholesale authorisation, or

(b) a disposal authorisation.

(2) A sewerage licence granted to a sewerage undertaker may not give the holder-

(a) a retail authorisation, or

(b) a wholesale authorisation.

(3) A sewerage licence may not be granted to a person unless that person is a limited company.

(4) The restriction in subsection (3) does not apply if the sewerage licence gives only a retail authorisation."

(2) After Schedule 2A to the Water Industry Act 1991 (inserted by section 1) there is inserted the Schedule set out in Schedule 3.

(3) Schedule 4 (which amends Part 4 of the Water Industry Act 1991 to add a Chapter 2A relating to arrangements between sewerage undertakers and sewerage licensees) has effect.

Application as regards Wales

Application as regards Wales

S-5 Water supply and sewerage licensing changes applied as regards Wales

5 Water supply and sewerage licensing changes applied as regards Wales

Schedule 5 (which contains amendments in connection with applying licensing changes to relation to relevant undertakers whose areas are wholly or mainly in Wales) has effect.

Licensing arrangements between England and Wales and Scotland

Licensing arrangements between England and Wales and Scotland

S-6 Arrangements with the Water Industry Commission for Scotland

6 Arrangements with the Water Industry Commission for...

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