Section 16: Modification following report., Water Industry Act 1991

Where a report of the CMA on a reference under section 14 above—

includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;

specifies effects adverse to the public interest which those matters have or may be expected to have;

includes conclusions to the effect that those effects could be remedied or prevented by modifications of the conditions of a company's appointment under this Chapter; and

specifies modifications by which those effects could be remedied or prevented,

the Authority shall, subject to the following provisions of this section, make such modifications of the conditions of that appointment as appear to it requisite for the purpose of remedying or preventing the adverse effects specified in the report.

Before making modifications under this section, the Authority shall have regard to the modifications specified in the report.

Before making modifications under this section, the Authority shall give notice—

stating that he proposes to make the modifications and setting out their effect;

stating the reasons why he proposes to make the modifications; and

specifying the period (not being less than twenty-eight days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

A notice under subsection (3) above shall be given—

by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and

by serving a copy of the notice on the company whose appointment it is proposed to modify.

After considering any representations or objections made in response to proposals set out in a notice under subsection (3) above, the Authority shall give notice to the CMA—

setting out the modifications it proposes to make to remedy or prevent the adverse effects specified in the report; and

stating the reasons for making the modifications.

The Authority shall include with the notice under subsection (4A) above a copy of any representations or objections received in relation to the notice under subsection (3) above.

If the period of four weeks from the date on which the notice under subsection (4A) above is given elapses without a direction under section 16A(1)(a) below having been given to it, the Authority shall—

make the modifications set out in the notice; or

if a direction under section 16A(1)(b) below has been given, make the modifications which are not specified in the direction.

The Authority shall not under this section make any modification of any provisions of a company's appointment under this Chapter which—

are contained in that appointment for the purposes of section 7(4)(c) above; or

being provisions relating to the disposal of, or of interests or rights in or over, a company's protected land, are stated in the appointment to be provisions which cannot be modified.

Section 16: Modification following report.

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