PART IVWATER SUPPLY
CHAPTER IISUPPLY DUTIES
Major supplies
Financial conditions of complianceI177
1
The conditions mentioned in Article 76(1)(c) are satisfied in relation to a requirement for the provision of a water main by a water undertaker if—
a
such undertakings as the undertaker may have reasonably required in accordance with paragraph (2) have been given by the person or persons who have required the provision of the main; and
b
such security as the undertaker may have reasonably required has been provided for the discharge of any obligations imposed by those undertakings on any person who, under paragraph (3) , may be required to secure his undertakings.
2
The undertakings which a water undertaker may require for the purposes of paragraph (1) in respect of any water main are undertakings which—
a
bind the person or persons mentioned in that paragraph to pay to the undertaker the reasonable costs of providing that main, as determined in accordance with the undertaker's charges scheme;
b
in the case of undertakings binding two or more persons, bind them either jointly and severally or with liability to pay apportioned in such manner as they may agree.
3
For the purposes of paragraph (1)(b) a person may be required to secure his undertakings in relation to the provision of a water main if—
a
it was by virtue of Article 76(2)(a) or (b) that he required, or joined in requiring, the provision of the main; and
b
he is not a public authority.
4
Where for the purposes of paragraph (1)(b) any sums have been deposited with a water undertaker by way of security for the discharge of any obligation, the undertaker shall pay interest at such rate as may be determined either—
a
by the undertaker with the approval of the Authority; or
b
in default of a determination under sub-paragraph (a), by the Authority,
on every sum so deposited for every 3 months during which it remains in the hands of the undertaker.
5
An approval or determination given or made by the Authority for the purposes of paragraph (4)—
a
may be given or made in relation to the provision of a particular water main, in relation to the provision of mains of a particular description or in relation to the provision of water mains generally; and
b
may be revoked at any time.
6
Any dispute between a water undertaker and any other person as to—
a
the undertakings or security required by the undertaker for the purposes of this Article; or
b
the amount required to be paid in pursuance of any such undertaking,
may be referred to the Authority for determination under Article 61 by either party to the dispute.