Part 1Water industry

CHAPTER 4Retail exit: non-household premises

I143Application for retail exit

1

Exit regulations about exit applications must make provision requiring a relevant undertaker to apply to the Secretary of State, and may include—

a

provision requiring a relevant undertaker to take such steps as the regulations may specify before making an application;

b

provision as to the form and manner in which an application is to be made and as to the contents of an application;

c

provision about payment to the Secretary of State of a fee of an amount specified in or determined under the regulations;

d

provision about the information that is to accompany an application;

e

provision for the Secretary of State to require a relevant undertaker to provide such further information as the Secretary of State may require in order to make a determination;

f

provision as to the grounds on which an application may be refused;

g

provision for the Secretary of State to grant an application subject to conditions.

2

Provision under subsection (1)(a) may require a relevant undertaker—

a

to consult—

i

its non-household customers and its other customers,

ii

the WSRA,

iii

the Chief Inspector of Drinking Water,

iv

the Consumer Council for Water, and

v

any other person specified in the regulations;

b

to prepare and publish a report assessing the effect on non-household customers and other customers if the undertaker withdraws from the non-household retail market;

c

to publish notice of its proposed exit application in such manner as the regulations may specify.

3

The grounds that may be specified under subsection (1)(f) include—

a

grounds relating to the public interest or to the interests of a section of the public;

b

grounds relating to the interests of non-household customers or other customers;

c

grounds relating to costs associated with a transfer of part of the relevant undertaker's undertaking;

d

grounds relating to the eligible licensee or licensees to which a transfer of part of the relevant undertaker's undertaking is proposed to be made.

4

The conditions that may be imposed under subsection (1)(g) include—

a

conditions as to the persons who are to pay the costs associated with a transfer of a part of the relevant undertaker's undertaking;

b

conditions as to the application of money received by the relevant undertaker in connection with a transfer of a part of its undertaking;

c

conditions about the relevant undertaker giving consent to modifications of the undertaker's conditions of appointment;

d

conditions about an eligible licensee to which a transfer of part of the relevant undertaker's undertaking is proposed to be made giving consent to modifications of the conditions of its water supply licence or sewerage licence;

e

conditions about the treatment of non-household customers affected by the transfer of part of the relevant undertaker's undertaking.

5

Exit regulations may make provision about how particular descriptions of customers and premises are affected by a relevant undertaker's withdrawal from the non-household retail market, including in particular any of the following—

a

premises to which the supply of water has been disconnected,

b

premises that are to be demolished,

c

premises that are temporarily unoccupied,

d

premises in relation to which the owner or occupier has served notice under section 63AA of the Water Industry Act 1991 (supply by water supply licensee: domestic supply),

e

premises in relation to which the owner or occupier has served notice under section 63AB of the Water Industry Act 1991 (supply by water supply licensee: non-domestic supply), and

f

premises in relation to which the owner or occupier has served notice under section 110K of the Water Industry Act 1991 (provision by sewerage licensee).

6

Provision under subsection (5) may include provision about how exit applications deal with particular descriptions of customers and premises.

7

Exit regulations may make provision about the disclosure by a relevant undertaker of such information as the regulations may specify about—

a

its non-household customers, and

b

the charges payable by them (whether payable under a charges scheme under section 143 of the Water Industry Act 1991 or under an agreement).

8

Exit regulations may specify—

a

the persons to whom the information may be disclosed;

b

the purposes for which it may be disclosed.