Water Industry Act 1991

[F117J[F2Modification of standard conditions]U.K.

(1)Subject to the following provisions of this section, the Authority [F3may modify—

(a)the standard conditions of water supply licences, or

(b)the standard conditions of sewerage licences.]

[F4(1A)Modifications may relate to—

(a)standard conditions contained in all water supply licences or sewerage licences, or

(b)standard conditions contained in those water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations.]

(2)Where at any time the Authority modifies the standard conditions of [F5water supply licences or sewerage licences] under this section the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of [F6any licence so affected].

(3)Before making any modifications under this section, the Authority shall give notice—

(a)stating that it proposes to make the modifications and setting out their effect;

(b)stating the reasons why it proposes to make the modifications; and

(c)specifying the time (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4)A notice under subsection (3) above shall be given—

(a)by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b)by serving a copy of the notice on—

(i)each relevant licence holder;

(ii)the Council;

(iii)the Secretary of State;

(iv)[F7if the notice relates to a water supply licence,] the Assembly; and

(v)the Chief Inspector of Drinking Water.

(5)If, within the time specified in the notice under subsection (3) above, the Secretary of State F8... directs the Authority not to make any modification, the Authority shall comply with the direction.

[F9(5A)The Secretary of State is to consult the Welsh Ministers before giving a direction under subsection (5) in relation to a water supply licence.]

(6)The Authority may not under this section make any modifications of the standard conditions of [F10water supply licences or sewerage licences] unless—

(a)no notice of objection to those modifications is given by any relevant licence holder to the Authority within the time specified in the notice under subsection (3) above;

(b)if one or more relevant licence holders give notice of objection to the Authority within that time—

(i)the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be specified in an order made by statutory instrument by the Secretary of State; and

(ii)the percentage given by subsection (7) below is less than such percentage as may be so specified; or

(c)subsection (8) below applies to the case.

(7)The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share at such time and in such manner as may be specified in an order under subsection (6) above.

(8)This subsection applies where the Authority is satisfied that—

(a)the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate;

(b)the modifications would remove or reduce the burden without removing any necessary protection; and

(c)the modifications are such that no holder of a water supply licence [F11or, as the case may be, a sewerage licence] would be unduly disadvantaged in competing with other holders of such licences.

(9)An order under subsection (6) above may include such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(10)Before making an order under subsection (6) above [F12in relation to the standard conditions of water supply licences], the Secretary of State shall consult the Assembly.

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

(12)Where the Authority modifies the standard conditions of [F13water supply licences or sewerage licences], the Authority shall—

(a)also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in [F14water supply licences or, as the case may be, sewerage licences] granted after that time; and

(b)publish the modifications in such manner as it considers appropriate.

[F15Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.]

(13)In this section “relevant licence holder”, in relation to proposed modifications of standard conditions of [F16water supply licences or sewerage licences or of such of those licences as grant a particular authorisation or combination of authorisations], means the holder of a licence of that description—

(a)which is to be modified under the proposals by the inclusion of any new standard condition; or

(b)which includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section 17H(4) above) at the time specified in the notice under subsection (3) above.]