Section 17P: 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 17O(6) 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 17O(6) 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 17O(8) 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 17O(6)(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

make such modifications itself of the relevant conditions 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 17O(8)(b) above.

In exercising its power under subsection (4)(b) above the CMA shall have regard to the matters as respects which duties are imposed on the Authority by Part 1 of this Act.

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;

by serving a copy of the notice on—

the Authority;

the holder of the licence in question or, as the case may be, the relevant licence holders;

the Council;

the Secretary of State;

if the reference relates to water supply licences, the Assembly; and

the Chief Inspector of Drinking Water.

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.

The modification under this section of part of a standard condition of a particular licence in consequence of a reference under section 17K(1) above shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Chapter.

Where, in consequence of a reference under section 17K(2) above, the CMA modifies under subsection (4)(b) above—

the standard conditions of water supply licences or sewerage licences, or

the standard conditions of water supply licences or sewerage licences that grant a particular authorisation or combination of authorisations,

the Authority may make such incidental or consequential modifications as it considers necessary or expedient of any conditions of licences of that description.

Where, in consequence of a reference under section 17K(2) above, the CMA modifies under subsection (4)(b) above the standard conditions of water supply licences or sewerage licences, the Authority shall—

make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in water supply licences or, as the case may be, sewerage licences granted after that time, and

publish the modifications made for those purposes in such manner as it considers appropriate.

Where the Authority modifies the standard conditions of water supply licences or sewerage licences that grant particular authorisations or combinations of authorisations, paragraph (a) has effect only as regards licences granting the same authorisations or combinations of authorisations.

Section 17P: Power of veto following report

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