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The Water Industry (Specified Infrastructure Projects) (English Undertakers) (Amendment) Regulations 2015

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Amendments to the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013E+W

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3.—(1) Paragraph 4 (conditions of project licences) is amended as follows.

(2) In the section 17HA of the Water Industry Act 1991 (conditions of project licences) which is set out in paragraph 4—

(a)in subsection (2)—

(i)at the end of paragraph (b), omit the word “and”;

(ii)in paragraph (c), for “specified questions” to the end substitute “such questions arising under or in connection with the licence and of such other matters as are specified or are of a specified description; and”; and

(iii)after paragraph (c), insert—

(d)provide for the reference by the Authority to the CMA, and the determination by the CMA, of such questions arising under or in connection with the licence and of such other matters, including disputes as to determinations by the Authority, as are specified or are of a specified description.; and

(b)after subsection (5) insert—

(6) Where any question or other matter falls to be determined by the CMA in pursuance of a provision contained in a project licence held by a licensed infrastructure provider—

(a)it is the duty of the Authority, on being required to do so by that licensed infrastructure provider, to refer that question or matter to the CMA; and

(b)it is the duty of the CMA to determine any question or other matter referred by virtue of paragraph (a) in accordance with the principles which apply, by virtue of Part 1 of this Act, in relation to determinations under this Chapter by the Authority.

(7) For the purposes of subsection (6), where—

(a)the question or matter referred to the CMA concerns the review of a price control imposed on the licensed infrastructure provider; and

(b)the CMA is to decide to what extent it is reasonable to take into account in its determination costs incurred or borne by the licensed infrastructure provider in connection with the reference,

the CMA shall also have regard to the extent to which, in its view, its determination is likely to support the licensed infrastructure provider’s (rather than the Authority’s) claims in relation to the question or matter referred to it.

(8) Section 17K(5) and (7), and sections 17L and 17M, apply to references to the CMA under this section as they apply to references under section 17K(1).

(9) A report of the CMA on a reference under this section—

(a)shall be made to the Authority; and

(b)shall include definite conclusions on the questions or other matters comprised in the reference, together with such an account of the CMA’s reasons for those conclusions as, in the opinion of the CMA, is expedient for facilitating a proper understanding of those questions or other matters and of the CMA’s conclusions.

(10) Section 17N(10), (13) and (14) applies to a report of the CMA on a reference under this section as it applies to a report on a reference under section 17K(1).

(11) The functions of the CMA with respect to a reference under this section are 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(1) (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002(2), as applied by subsection (8) read with section 17M)..

(1)

2013 c. 24; Part 1 of Schedule 4 was amended by section 67 of the Financial Services (Banking Reform) Act 2013. Part 1 was also amended by section 129 of, and Schedule 8 to, that Act, although those provisions are not yet in force. Part 3 of Schedule 4 was amended by section 79(8) of, and Schedule 5 to, that Act.

(2)

2002 c. 40; sections 109, 110 and 111 were amended by section 29 of and (respectively) paragraphs 143, 144 and 145 of Schedule 5 to the Enterprise and Regulatory Reform Act 2013. Sections 110A and 110B were inserted by section 29 of that Act. Sections 112, 113, 114 and 115 were amended by (respectively) paragraphs 146, 147, 148 and 149 of Schedule 5 to that Act.

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