Section 105ZF: Rules about charges in connection with a section 104 agreement, Water Industry Act 1991

The Authority may issue rules about charges that may be imposed by a sewerage undertaker under a section 104 agreement.

The rules may in particular make provision about—

what types of charge may be imposed;

the amount or the maximum amount, or a method for determining the amount or maximum amount, of any type of charge;

principles for determining what types of charge may or may not be imposed;

principles for determining the amount of any charge that may be imposed;

publication of the charges that may be imposed.

The rules may require a sewerage undertaker, upon declaring a sewer, drain or sewage disposal works to be vested in the undertaker in accordance with a section 104 agreement, to pay to the other party to the agreement an amount (which may be nil) determined in accordance with the rules.

Rules made by virtue of subsection (3) may, in particular, provide for the determination to take into account—

revenue that might be derived from the sewer, drain or sewage disposal works in question;

costs that might have been incurred in providing such a sewer, drain or sewage disposal works.

The rules may also make provision as to—

the amount of security that may be required by a sewerage undertaker for the purposes of any charges imposed by the sewerage undertaker under a section 104 agreement;

the type of security that may be required;

the payment of interest on a sum deposited with a sewerage undertaker by way of security.

If the Authority considers that a sewerage undertaker is not acting as required by rules under this section, the Authority may give the undertaker a direction to do, or not to do, a particular thing specified in the direction.

It is the duty of a sewerage undertaker to comply with a direction under subsection (6), and this duty is enforceable by the Authority under section 18.

The rules may make different provision for different sewerage undertakers or descriptions of undertaker.

The Authority may from time to time revise rules issued under this section and issue revised rules.

The Authority must issue revised rules if—

guidance is issued under section 105ZI, and

the Authority, having regard to that guidance, considers that it is appropriate to revise the rules.

Revised rules may include provision for applying any of their revisions to section 104 agreements made before the revised rules come into effect.

Section 105ZF: Rules about charges in connection with a section 104 agreement

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