Section 16A: CMA's power of veto following report, Water Industry Act 1991

The CMA may, within the period of four weeks after the date on which it is given a notice under section 16(4A) above, direct the Authority—

not to make the modifications set out in that notice; or

not to make such of the modifications as may be specified in the direction;

and the Authority shall comply with any such direction.

The Secretary of State may, within the period of four weeks after the date on which the CMA is given a notice under section 16(4A) above and on the application of the CMA, direct that the period for giving a direction under subsection (1) above (and, accordingly, the period mentioned in section 16(4C) above) shall be extended by fourteen days.

The power to give a direction under subsection (1) above may only be exercised in respect of such of the modifications set out in the notice under section 16(4A)(a) above as appear to the CMA not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications.

If the CMA gives a direction under subsection (1) above, it—

shall give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and

shall itself make such modifications as appear to it to be requisite for the purpose of remedying or preventing—

if the direction was given under subsection (1)(a) above, the adverse effects specified in the report as effects which could be remedied or prevented by modifications;

if the direction was given under subsection (1)(b) above, such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 16(4C)(b) above.

In exercising its power under subsection (4)(b) above, the CMA shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a company's appointment.

Before making modifications under subsection (4)(b) above the CMA shall give notice—

stating that it proposes to make the modifications and setting them out;

stating the reason why it proposes to make them;

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 (4)(a) or (6) above shall be given—

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

by serving a copy on the Authority and the company whose conditions of appointment it is proposed should be modified.

The CMA may not make any modification under this section which the Authority could not make under section 16 above.

After making modifications under this section the CMA shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them.

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Section 16A: CMA's power of veto following report

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