Moved by
Lord De Mauley
91B: Schedule 11, page 225, line 6, at end insert—
“Changes in water supply licensing
1A (1) A section 77 order may make provision in connection with the introduction of new water supply licences.
(2) A section 77 order may in particular—
(a) make provision for old water supply licences to continue in effect, subject to provision made by a qualifying scheme;
(b) make provision about the granting of a new water supply licence on application made by the holder of an old water supply licence.
(3) A qualifying scheme is a scheme that—
(a) is made by the Water Services Regulation Authority, and
(b) contains such provision as is described in sub-paragraph (4).
(4) The provision mentioned in sub-paragraph (3)(b) is—
(a) provision for the revocation of all old water supply licences—
(i) on the first day on which it would be possible for a new water supply licence to come into effect, or
(ii) in accordance with arrangements in the scheme and before a day specified in or determined under the scheme,
(b) provision for compensation to be paid by the Water Services Regulation Authority in connection with the revocation under the scheme of an old water supply licence,
(c) provision, in a case where the scheme allows a holder’s old water supply licence and new water supply licence to have effect at the same time, for preventing the holder supplying water to premises in reliance on the old water supply licence where—
(i) the premises supplied are the premises of a person who was not a customer of the holder immediately before the grant of the new licence, and
(ii) the premises could be supplied with water in reliance on the new water supply licence,
(d) provision for compensation to be paid by the Water Services Regulation Authority in connection with the restriction imposed on an old water supply licence under paragraph (c),
(e) provision about the determination of—
(i) claims for compensation payable under the scheme, and
(ii) appeals from the determination of such claims, and
(f) provision satisfying such other requirements as may be specified in a section 77 order, including requirements about the persons who may claim compensation, the measure of compensation and matters by reference to which compensation may be reduced.
(5) Requirements imposed under sub-paragraph (4)(f) may allow the scheme to make provision by virtue of which the compensation payable in a particular case may be nil.
(6) A qualifying scheme may include provision about—
(a) the making of claims for compensation;
(b) the matters to be proved by a claimant.
(7) Sub-paragraphs (4) to (6) are not exhaustive of what may be included in a qualifying scheme.
(8) A section 77 order may make provision for a relevant person specified in the order, or appointed by the Secretary of State, to determine—
(a) claims for compensation payable under a qualifying scheme;
(b) appeals from the determinations of such claims.
(9) In sub-paragraph (8) “relevant person” means—
(a) the Water Services Regulation Authority, except in relation to appeals from the determination of claims for compensation,
(b) the Competition and Markets Authority, or
(c) any other public authority (within the meaning of section 6 of the Human Rights Act 1998).
(10) A section 77 order may provide for functions of the Competition and Markets Authority (“the CMA”) relating to compensation payable under a qualifying scheme to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.
Modification of conditions of old water supply licences
1B (1) Where a section 77 order makes provision for old water supply licences to continue in effect, that provision may include provision for applying new sections 17I to 17R to old water supply licences, with such modifications as appear to the Secretary of State to be appropriate.
(2) Provision under sub-paragraph (1) may include provision for treating a reference to a new water supply licence as including a reference to an old water supply licence.
(3) Provision under sub-paragraph (1) may include provision for treating—
(a) a reference to a standard condition of a new water supply licence as including a reference to a standard condition of an old water supply licence, if the two conditions are in, or as nearly as may be are in, the same terms;
(b) a reference to a standard condition of a new water supply licence giving the holder a new retail authorisation as including a reference to a standard condition of an old water supply licence giving the holder a retail authorisation, if the two conditions are in, or as nearly as may be are in, the same terms;
(c) a reference to a standard condition of a new water supply licence giving the holder a new restricted retail authorisation as including a reference to a standard condition of an old water supply licence giving the holder a retail authorisation, if the two conditions are in, or as nearly as may be are in, the same terms;
(d) a reference to a standard condition of a new water supply licence giving the holder a new wholesale authorisation as including a reference to a standard condition of an old water supply licence giving the holder a supplementary authorisation, if the two conditions are in, or as nearly as may be are in, the same terms.
(e) a reference to a standard condition of a new water supply licence giving the holder a new supplementary authorisation as including a reference to a standard condition of an old water supply licence giving the holder a supplementary authorisation, if the two conditions are in, or as nearly as may be are in, the same terms.
Changes in water supply licensing: Wales
1C (1) A section 77 order may make provision in connection with the extension of new retail authorisations and new wholesale authorisations to the use of supply systems of water undertakers whose areas are wholly or mainly in Wales, where that extension takes place after the introduction of new water supply licences.
(2) A section 77 order may in particular include provision for or in relation to the payment by the Water Services Regulation Authority of compensation to any person holding a new water supply licence who—
(a) following the coming into force of any provision of this Act, is unable to carry on activities that had previously been authorised by a new restricted retail authorisation, or a new restricted retail authorisation and a new supplementary authorisation, given by the licence as a result of—
(i) a new retail authorisation or a new wholesale authorisation or both having been required in respect of them, and
(ii) the person’s licence not having been varied to add a new retail authorisation or a new wholesale authorisation or both, because the person did not apply to vary the licence, or did not apply to add the appropriate authorisation or authorisations, or because the person’s application to vary the licence was refused or granted only as to one authorisation, and
(b) has suffered loss or damage as a result of not having a licence that enables the person to carry on all those activities.
Introduction of sewerage licensing
1D (1) A section 77 order may make provision in connection with the introduction of sewerage licences.
(2) A section 77 order may in particular include provision for or in relation to the payment by the Water Services Regulation Authority of compensation to any person who—
(a) before 31 March 2014 was carrying on any activities in relation to the sewerage system of a sewerage undertaker,
(b) following the coming into force of any provision of this Act—
(i) is unable to continue to carry on those activities as a result of their having been prohibited,
(ii) is unable to continue to carry on those activities as a result of a sewerage licence having been required in respect of them, and the person’s not having applied for, or the person’s having been refused, a sewerage licence, or
(iii) is unable to continue to carry on those activities in the same manner as a result of the person’s having been granted a sewerage licence the effect of which is to restrict the carrying on of the activities, and
(c) has suffered loss or damage as a result of—
(i) those activities having been prohibited,
(ii) a sewerage licence not having been granted, or
(iii) those activities having been restricted.”
91C: Schedule 11, page 227, line 11, leave out “for a relevant period”
91D: Schedule 11, page 227, line 43, at end insert—
““sewerage licence” means a sewerage licence granted under section 17BA of the Water Industry Act 1991.”