Part IIIWater Supply

Chapter IISupply Duties

Other supplies

56Determinations on requests for non-domestic supplies

1

Subject to subsection (3) below, any terms or conditions or other matter which falls to be determined for the purposes of a request made by any person to a water undertaker for the purposes of section 55 above shall be determined—

a

by agreement between that person and the water undertaker; or

b

in default of agreement, by the Director according to what appears to him to be reasonable.

2

Subject to subsection (3) below, the Director shall also determine any dispute arising between any person and a water undertaker by virtue of subsection (3) or (4) of section 55 above.

3

The Director may, instead of himself making a determination under subsection (1) or (2) above, refer any matter submitted to him for determination under that subsection to the arbitration of such person as he may appoint.

4

For the purposes of any determination under this section by the Director or any person appointed by him it shall be for a water undertaker to show that it should not be required to comply with a request made for the purposes of section 55 above.

5

The charges in respect of a supply provided in compliance with any request made for the purposes of section 55 above—

a

shall not be determined by the Director or a person appointed by him, except in so far as, at the time of the request, no provision is in force by virtue of a charges scheme under section 143 below in respect of supplies of the applicable description; and

b

in so far they do fall to be determined, shall be so determined having regard to the desirability of the undertaker's—

i

recovering the expenses of complying with its obligations under section 55 above; and

ii

securing a reasonable return on its capital.

6

To the extent that subsection (5)(a) above excludes any charges from a determination under this section, those charges shall be fixed from time to time by a charges scheme under section 143 below, but not otherwise.

7

The determination of any matter under this section shall be without prejudice to the provisions of sections 233 and 372 of the [1986 c. 45.] Insolvency Act 1986 (conditions of supply after insolvency).