Citation and interpretation

1.-(1) This Order may be cited as the Water Act 2014 (Commencement No. 9 and Transitional Provisions) Order 2017.

(2) In this Order-

"the 1991 Act" means the Water Industry Act 1991(2);

"the 2014 Act" means the Water Act 2014;

"the Authority" means the Water Services Regulation Authority;

"new retail authorisation" means a retail authorisation given by a new water supply licence;

"new supplementary authorisation" means a supplementary authorisation given by a new water supply licence;

"new water supply licence" means a water supply licence granted under new section 17A of the 1991 Act(3) and "new water supply licensee" is to be construed accordingly;

"new wholesale authorisation" means a wholesale authorisation given by a new water supply licence;

"old water supply licence" means a water supply licence granted under old section 17A of the 1991 Act(4) and "old water supply licensee" is to be construed accordingly;

"relevant undertaker" means a water undertaker or a sewerage undertaker;

"threshold requirement" is to be construed in accordance with old section 17D of the 1991 Act(5), as the requirement applies to premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in England.

(3) In this Order-

(a)a reference to an old provision is a reference to a provision of the 1991 Act as it had effect before the coming into force of an amendment or repeal of that provision made by the 2014 Act;

(b)a reference to a new provision is a reference to-

(i)a provision of the 1991 Act after an amendment of that provision made by the 2014 Act has come into force, or

(ii)a provision of the 1991 Act that was inserted by the 2014 Act.

Provisions of the 2014 Act coming into force on 30th March 2017

2.  The following provisions of the 2014 Act come into force on 30th March 2017-

(a)subsection (3) of section 1 (types of water supply licence and arrangements with water undertakers) so far as it relates to paragraph (c);

(b)subsection (3) of section 4 (types of sewerage licence and arrangements with sewerage undertakers) so far as it relates to paragraph (d);

(c)paragraph 4 of Schedule 2 (water undertakers' duties as regards water supply licensees) so far as not already in force;

(d)Schedule 4 (sewerage undertakers' duties as regards sewerage licensees) so far as it inserts the following provisions into the 1991 Act-

(i)section 117F;

(ii)section 117G so far as not already in force;

(iii)section 117H.

Provisions of the 2014 Act coming into force on 1st April 2017

3.  The following provisions of the 2014 Act come into force on 1st April 2017-

(a)subsection (3) of section 1 (types of water supply licence and arrangements with water undertakers) so far as it relates to paragraph (i);

(b)section 2 (the supply system of a water undertaker);

(c)subsection (3) of section 4 (types of sewerage licence and arrangements with sewerage undertakers) so far as it relates to paragraph (j);

(d)section 10 (agreements by water undertakers to adopt infrastructure) as follows-

(i)subsection (1) so far as it relates to sub-paragraph (ii);

(ii)subsection (3) so far as it-

(aa)substitutes section 51B(6) of the 1991 Act so far as it confers power on the Secretary of State to make regulations or make provision in relation to the exercise of that power;

(bb)inserts section 51CB into the 1991 Act;

(e)section 11 (agreements by sewerage undertakers to adopt infrastructure) as follows-

(i)subsection (1) so far as it relates to sub-paragraph (ii);

(ii)subsection (3) so far as it inserts section 105ZD into the 1991 Act;

(f)section 31 (interim duty: water supply);

(g)section 32 (interim duty: sewerage services) so far as not already in force;

(h)section 56 (further amendments) so far as it relates to paragraph (k);

(i)Schedule 2 (water undertakers' duties as regards water supply licensees) as follows-

(i)paragraph 1 so far as it substitutes sections 66A, 66AA and 66C of the 1991 Act;

(ii)paragraph 2 except as it relates to section 66CA(1)(c), (2) and (3) of the 1991 Act;

(iii)paragraph 3;

(iv)paragraph 5 so far as not already in force;

(v)paragraphs 6 to 8;

(vi)paragraph 9 so far as not already in force.

(j)Schedule 4 (sewerage undertakers' duties as regards sewerage licensees) so far as it inserts the following provisions into the 1991 Act-

(i)sections 117A and 117B;

(ii)section 117E so far as it relates to sections 117A and 117B of the 1991 Act;

(iii)section 117M;

(iv)section 117P so far as not already in force;

(k)Schedule 7 (further amendments) as follows-

(i)paragraph 2 so far as it relates to sub-paragraphs (ii) to (xxiii);

(ii)paragraph 3 so far as not already in force;

(iii)paragraph 10 so far as not already in force;

(iv)paragraph 12 so far as not already in force;

(v)paragraph 35 as follows-

(aa)sub-paragraph (1) so far as it relates to paragraphs (bb) to (ee);

(bb)sub-paragraph (2) except as it relates to qualifying sewerage licensees;

(cc)sub-paragraph (3);

(dd)sub-paragraph (7) so far as it substitutes section 23(4)(b)(i) of the 1991 Act;

(ee)sub-paragraphs (8) and (9);

(vi)paragraphs 36 to 38 except as they relate to qualifying sewerage licensees;

(vii)paragraphs 58 to 61;

(viii)paragraph 73;

(ix)paragraph 74 so far as not already in force;

(x)paragraph 85;

(xi)paragraph 90 so far as it relates to a retail authorisation;

(xii)paragraph 93 so far as it relates to a retail authorisation;

(xiii)paragraph 96;

(xiv)paragraph 98 as follows-

(aa)sub-paragraph (1) so far as it relates to paragraph (bb);

(bb)sub-paragraphs (3) and (4);

(xv)paragraph 100;

(xvi)paragraph 105 so far as not already in force;

(xvii)paragraph 108 so far as not already in force;

(xviii)paragraph 111;

(xix)paragraph 112 so far as not already in force;

(xx)paragraph 115 so far as not already in force;

(xxi)paragraph 118;

(xxii)paragraph 120 as follows-

(aa)sub-paragraph (1) so far as it relates to paragraph (bb);

(bb)sub-paragraph (3) so far as it relates to sections 51CA and 51CB of the 1991 Act;

(xxiii)paragraph 123;

(xxiv)paragraphs 128 to 130;

(xxv)paragraphs 136 to 142.

Provisions of the 2014 Act coming into force on 1st October 2017

4.  The following provisions of the 2014 Act come into force on 1st October 2017-

(a)section 10 (agreements by water undertakers to adopt infrastructure) so far as not already in force;

(b)section 11 (agreements by sewerage undertakers to adopt infrastructure) so far as not already in force;

(c)section 56 (further amendments) so far as it relates to paragraph (d);

(d)Schedule 7 (further amendments) as follows-

(i)paragraph 2 so far as it relates to sub-paragraphs (ii) to (iv);

(ii)paragraphs 91 and 92;

(iii)paragraphs 94 and 95;

(iv)paragraph 98 so far as not already in force.

Provisions of the 2014 Act coming into force on 1st April 2018

5.  The following provisions of the 2014 Act come into force on 1st April 2018-

(a)section 18 (charges for providing a water main etc.);

(b)section 19 (charges for providing a public sewer etc.);

(c)section 20 (charges for moving pipes);

(d)section 56 (further amendments) so far as it relates to paragraph (e);

(e)Schedule 7 (further amendments) as follows-

(i)paragraph 2 so far as it relates to sub-paragraphs (ii) and (iii);

(ii)paragraphs 54 to 57;

(iii)paragraphs 87 to 89.

Transitional provisions in relation to new section 66A of the 1991 Act

6.  Until new section 66B(1) of the 1991 Act(6) comes into force-

(a)in new section 66A(5)(a)(ii) of the 1991 Act(7), the reference to a request under section 66B(1) of the 1991 Act is to be treated as a reference to a request under old section 66B(1) or (2) of the 1991 Act(8);

(b)in new section 66A(5)(b)(i) of the 1991 Act, the reference to a request under section 66B(2) or (3) of the 1991 Act is to be treated as a reference to a request under old section 66B(1) or (2) of the 1991 Act.

Transitional provisions in relation to old section 66B of the 1991 Act

7.-(1) Until new section 66B(1) of the 1991 Act comes into force, old section 66B of the 1991 Act applies as if the modifications in paragraphs (2) to (8) have effect.

(2) A reference to a qualifying licensed water supplier is to be treated as a reference to a qualifying water supply licensee.

(3) A reference to a retail authorisation is to be treated as a reference to a restricted retail authorisation given by a new water supply licence, or a new retail authorisation, as appropriate.

(4) A reference to the supply system of a water undertaker is to be treated as a reference to the supply system of a water undertaker as it is described in old section 17B of the 1991 Act(9).

(5) Old section 66D(1) of the 1991 Act applies in relation to a case referred to the Authority for a determination as to whether any condition specified in old section 66B(5) or (6) of the 1991 Act is satisfied and a reference to a licensed water supplier in old section 66D(1) of the 1991 Act is to be treated as a reference to a qualifying water supply licensee.

(6) Old sections 66D(2) to (8), 66E and 66F of the 1991 Act apply for the purpose of determining-

(a)the period for which, and

(b)the terms and conditions on which,

a water undertaker's duties under old section 66B of the 1991 Act are to be performed and a reference to a licensed water supplier in old sections 66D(2) to (8), 66E and 66F of the 1991 Act is to be treated as a reference to a qualifying water supply licensee.

(7) A reference to treatment works is to be construed as follows-

(a)in relation to a water undertaker whose area is wholly or mainly in England, as a reference to works developed or maintained by the water undertaker for the purpose of complying with its duty under section 37 of the 1991 Act(10);

(b)in relation to a water undertaker whose area is wholly or mainly in Wales, as a reference to works designated from time to time by the Welsh Ministers as treatment works for the purposes of old section 66B(8)(a) of the 1991 Act;

(c)in relation to a qualifying water supply licensee with a new supplementary authorisation, as a reference to works designated from time to time by the Welsh Ministers as treatment works for the purposes of old section 66B(8)(b) of the 1991 Act;

(d)in relation to a qualifying water supply licensee with a new wholesale authorisation, as a reference to works owned or operated by the licensee and used for the introduction of water into the undertaker's supply system in accordance with its new wholesale authorisation.

(8) A reference to the Secretary of State, except in old section 66B(9) of the 1991 Act, is to be treated as a reference to the Welsh Ministers in relation to a water undertaker whose area is wholly or mainly in Wales or in relation to a qualifying water supply licensee with a new supplementary authorisation.

(9) In this article, "qualifying water supply licensee" means a new water supply licensee with a new supplementary authorisation or a new wholesale authorisation.

Transitional provisions in relation to old section 66D agreements

8.-(1) Subject to paragraphs (2) to (5), an old section 66D agreement ceases to have effect after 31st March 2017.

(2) An old section 66D agreement continues to have effect on and from 1st April 2017, with the modifications set out in sub-paragraphs (a) and (b), in a case where the person who entered into the agreement as the holder of an old water supply licence holds on 1st April 2017 a new water supply licence with a new wholesale authorisation or new supplementary authorisation that authorises that person to make the introduction of water that is the subject of the old section 66D agreement-

(a)where a water undertaker whose area is wholly or mainly in England is a party to the agreement, a reference in that agreement to the old supplementary authorisation is to be treated as a reference to the new water supply licensee's new wholesale authorisation;

(b)where a water undertaker whose area is wholly or mainly in Wales is a party to the agreement, a reference in that agreement to the old supplementary authorisation is to be treated as a reference to the new water supply licensee's new supplementary authorisation.

(3) The Authority may vary or terminate an old section 66D agreement by order, on application by the new water supply licensee who is a party to the agreement.

(4) Old section 66E of the 1991 Act(11) applies for the purpose of determining charges payable under an old section 66D agreement and a reference in old section 66E of the 1991 Act to a licensed water supplier is to be treated as a reference to a new water supply licensee.

(5) A new water supply licensee may refer a case to the Authority for a determination under old section 66D(1) of the 1991 Act and in that instance-

(a)the old section 66F of the 1991 Act(12) is to apply to that determination, and

(b)a reference in old sections 66D(1) and 66F of the 1991 Act to a licensed water supplier is to be treated as a reference to a new water supply licensee.

(6) In this article-

"old section 66D agreement" means such agreement or determination as is mentioned in old section 66D(3) of the 1991 Act(13);

"old supplementary authorisation" means an authorisation as defined in old section 17A(5) of the 1991 Act given by an old water supply licence.

Transitional provision in relation to new section 66D of the 1991 Act

9.  A reference to section 66B of the 1991 Act in new section 66D of the 1991 Act(14) is to be read as if new section 66B of the 1991 Act was in force.

Transitional provisions in relation to new sections 66DA to 66DC of the 1991 Act

10.  In new sections 66DA to 66DC of the 1991 Act(15)-

(a)a reference to sections 66A to 66C of the 1991 Act is to be read as if new sections 66A to 66C of the 1991 Act(16) were in force;

(b)a reference to a section 66D agreement is a reference to a section 66D agreement as defined in new section 66D(9) of the 1991 Act.

Transitional provisions in respect of new wholesale authorisations

11.-(1) Until new section 66B(1) of the 1991 Act comes into force, paragraphs (2) to (5) have effect in relation to a new wholesale authorisation.

(2) A new wholesale authorisation is an authorisation to the new water supply licensee to introduce water into the supply system of a water undertaker-

(a)by means of which system any particular supply in accordance with the licensee's new retail authorisation is to take place, and

(b)where that introduction is to be made in connection with that intended supply.

(3) The threshold requirement must be satisfied in relation to the supply of water to any premises, where the supply to those premises is made in connection with the introduction of water into the supply system of a water undertaker under a new wholesale authorisation.

(4) Any guidance issued by the Authority under old section 17D(3) of the 1991 Act(17) is to apply to estimates of the quantity of water to be supplied to any premises in accordance with a new wholesale authorisation as it does for any estimate for the purposes of old section 17D(2) of the 1991 Act.

(5) A reference to the supply system of a water undertaker in the following provisions is to be treated as a reference to the supply system of a water undertaker as it is described in old section 17B of the 1991 Act-

(a)section 66J of the 1991 Act(18);

(b)the description of the new wholesale authorisation in paragraph 5 of Schedule 2A to the 1991 Act(19);

(c)regulation 4 of the Water Supply (Exceptions from Supply System Prohibitions) Regulations 2005(20).

Transitional provisions in respect of secondary supplies and new wholesale authorisations

12.-(1) Until new section 66B(1) of the 1991 Act comes into force, paragraphs (2) to (4) have effect in relation to a request under new section 66C(1), (2) or (3) of the 1991 Act to a secondary water undertaker.

(2) The supply of water to any premises, using the primary water undertaker's supply system must be made in accordance with the requesting water supply licensee's new retail authorisation.

(3) The threshold requirement must be satisfied in relation to the supply of water to any premises, where the supply to those premises is made in connection with the introduction of water into the supply system of a water undertaker by way of secondary supply.

(4) A reference to the supply system of a water undertaker is to be treated as a reference to the supply system of a water undertaker as it is described in old section 17B of the 1991 Act.

(5) In this article-

"primary water undertaker" has the meaning given in new section 66C(11) of the 1991 Act;

"secondary supply" means the provision by a secondary water undertaker of a supply of water so that water may be supplied to particular premises, using the primary water undertaker's supply system;

"secondary water undertaker" has the meaning given in new section 66C(1) of the 1991 Act.

Transitional provision in respect of undertakings by old water supply licensees

13.-(1) Paragraph (2) applies where an old water supply licensee has entered into an undertaking with a customer before 1st April 2017 to give a supply of water to any premises.

(2) If the old water supply licensee holds a new water supply licence on 1st April 2017, the undertaking referred to in paragraph (1) is to be treated as if it was entered into under that new water supply licence.

Transitional provisions in respect of new charging rules for connections

14.-(1) The new charging rules and the relevant provisions of the 2014 Act do not apply where before 1st April 2018-

(a)the relevant conditions are already satisfied, or

(b)a person and a relevant undertaker have agreed that the provisions of the 1991 Act before they were amended by the relevant provisions of the 2014 Act are to continue to be the basis for the calculation of charges.

(2) The transitional arrangement provided for in paragraph (1)(b) ends on 31st March 2023 and from 1st April 2023 the new charging rules must be used as the basis for the calculation of charges.

(3) In this article-

"new charging rules" means rules about charges issued by the Authority under section 144ZA of the 1991 Act(21);

"relevant conditions" means-

"relevant provisions of the 2014 Act" means-

Transitional provisions in relation to new charging rules for adoption agreements

15.-(1) Before 1st April 2018, old section 51C of the 1991 Act(33) continues to have effect in relation to a section 51A agreement.

(2) In relation to a section 51A agreement, from 1st April 2018 the new charging rules do not apply and old section 51C of the 1991 Act continues to have effect, where before that date-

(a)a section 51A agreement has been made,

(b)an appeal has been made to the Authority under old section 51B of the 1991 Act(34),

(c)an application has been made to the Authority for an order under new section 51B(4) of the 1991 Act(35), or

(d)a person and a relevant undertaker have agreed that old section 51C of the 1991 Act is to continue to be the basis for the calculation of charges and that the new charging rules are not to apply.

(3) In relation to a section 104 agreement, from 1st April 2018 the new charging rules do not apply, where before that date-

(a)a section 104 agreement has been made,

(b)an appeal has been made to the Authority under old section 105 of the 1991 Act(36),

(c)an application has been made to the Authority for an order under new section 105ZA(4) of the 1991 Act(37), or

(d)a person and a relevant undertaker have agreed that the new charging rules are not to apply.

(4) The transitional arrangements provided for in paragraphs (2)(d) and (3)(d) end on 31st March 2023 and from 1st April 2023 the new charging rules must be used as the basis for the calculation of charges.

(5) In this article-

"new charging rules" means rules about charges issued by the Authority under section 51CD or 105ZF of the 1991 Act(38);

"section 51A agreement" means an agreement between a water undertaker and a person constructing or proposing to construct a water main or a service pipe made under either old section 51A of the 1991 Act(39) or new section 51A of the 1991 Act(40);

"section 104 agreement" means an agreement between a sewerage undertaker and a person constructing or proposing to construct a sewer, a drain or a sewage disposal works made under old section 104 of the 1991 Act(41) or new section 104 of the 1991 Act(42).

Amendment to the Water Act 2014 (Commencement No. 6, Transitional Provisions and Savings) Order 2016

16.  In paragraphs 1, 2 and 3 of Schedule 2 to the Water Act 2014 (Commencement No. 6, Transitional Provisions and Savings) Order 2016(43), for "3rd April 2017" substitute "1st April 2017".

EXPLANATORY NOTE

(This note is not part of the Order)

This Order is the ninth commencement order made under the Water Act 2014 (c.21) ("the 2014 Act") in relation to England and Wales. This Order commences various provisions of the 2014 Act amending the Water Industry Act 1991 (c.56) ("the 1991 Act").

Article 2 brings into force on 30th March 2017 provisions which allow the Water Services Regulation Authority ("Ofwat") to issue codes in respect of agreements under sections 66D and 117E of the 1991 Act.

Article 3 brings into force on 1st April 2017 provisions relating to the new licensing regime for water supply and sewerage services to non-household customers.

Articles 4 and 5 bring into force on 1st October 2017 and 1st April 2018 respectively provisions introducing codes from Ofwat about agreements under sections 51A and 104 of the 1991 Act and charging rules from Ofwat about the charges that developers and other customers pay water and sewerage undertakers for new connections and other infrastructure services.

Articles 6 to 13 contain transitional provisions relating to water supply licensing.

Articles 14 and 15 contain transitional provisions relating to Ofwat's charging rules.

Article 16 makes an amendment to the Water Act 2014 (Commencement No. 6, Transitional Provisions and Savings) Order 2016 (S.I. 2016/465 (C.26)).

Impact assessments of the effect that the 2014 Act will have on the costs of business, the voluntary sector and the public sector are available from the Water Services Team, Department for Environment, Food and Rural Affairs, Nobel House, 17 Smith Square, London SW1P 3JR and are published alongside the 2014 Act at www.legislation.gov.uk. No separate impact assessment has been produced for this instrument.

NOTE AS TO EARLIER COMMENCEMENT ORDERS

(This note is not part of the Order)

The following provisions of the 2014 Act have been brought into force by a commencement order made before the date of this Order: