(a)the functions of the Gas and Electricity Consumer Council under the Gas Act 1986 (c. 44), the Electricity Act 1989 (c. 29) and the Utilities Act 2000 (c. 27), and

(b)the functions of the Consumer Council for Postal Services under the Postal Services Act 2000 (c. 26),

are transferred by this section to the Council.

(4)Accordingly—

(a)in section 66 of the Gas Act 1986 (general interpretation), for the definition of “the Council” substitute—

““the Council” means the National Consumer Council;”,

(b)in section 111(1) of the Electricity Act 1989 (general interpretation), for the definition of “the Council” substitute—

““the Council” means the National Consumer Council;”,

(c)in section 125(1) of the Postal Services Act 2000 (interpretation), after the definition of “correspondent” insert—

““the Council” means the National Consumer Council,”, and

(d)in section 106(1) of the Utilities Act 2000 (interpretation), for the definition of “Council” substitute—

““Council” means the National Consumer Council;”.

(5)Schedule 3 contains transitional provisions.

(a)in the case of an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 (c. 56), conditions included in the appointment by virtue of section 11(1)(c) of that Act, and

(b)in the case of a water supply licence under Chapter 1A of that Part, conditions included in the licence by virtue of section 17G(1)(b) of that Act.

(3)The payment conditions of such an appointment or licence may (without prejudice to the generality of sections 11(1)(c) and 17G(1)(b) of that Act) require the payment by the company holding the appointment or licence of sums relating to any of the expenses mentioned in subsection (4).

(4)Those expenses are—

(a)the appropriate proportion of the expenses of the Council (other than those expenses within paragraph (b) and any expenses relating to the establishment of the Council);

(b)any expenses of the Council, the Secretary of State or the Consumer Council for Water which relate to a transfer scheme made in respect of the Consumer Council for Water under section 35(2)(a) or (7);

(c)the expenses of the Secretary of State which relate to the abolition of the Consumer Council for Water;

(d)the expenses of expanding an OFT scheme to enable it to cater for water consumers;

(e)the appropriate proportion of the expenses of the Office of Fair Trading on, or in connection with, the support of any OFT scheme.

(5)The “appropriate proportion” of any relevant expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—

(a)in the case of expenses within subsection (4)(a), the functions exercisable by the Council in relation to water consumers;

(b)in the case of expenses within subsection (4)(e), the functions under the OFT scheme which are exercisable in relation to water consumers.

(6)The Authority may, in accordance with this section, modify any payment conditions where it considers it necessary or expedient to do so in consequence of, or of preparations for—

(a)the abolition of the Consumer Council for Water, or

(b)a transfer order or abolition order under section 32.

(7)The Authority may, in accordance with this section, make such incidental or consequential modifications of the other conditions which are included in—

(a)an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 (c. 56), or

(b)a water supply licence under Chapter 1A of that Part,

as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (6)(a) or (b).

(8)Before modifying under subsection (6) or (7) the conditions included in an appointment or licence, the Authority must consult the company holding the appointment or licence.

(9)The Secretary of State may, after consulting the Welsh Ministers, give directions to the Authority for the purpose of securing that sums relating to any of the expenses mentioned in subsection (4) are included in the sums payable by virtue of payment conditions; and the Authority must comply with any such direction.

(10)In this section—

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

• “OFT scheme” means any public consumer advice scheme supported by the Office of Fair Trading;

• “water consumers” means consumers in relation to services provided by a water undertaker, a sewerage undertaker or a licensed water supplier, in its capacity as such.