Before issuing rules under section 40E, the Authority must—
prepare a draft of the proposed rules, and
consult such persons about the proposed rules as it thinks appropriate.
The Authority must specify the period ("the consultation period") within which persons may make representations about the proposed rules.
The Authority must have regard to guidance issued under section 40I in making rules under section 40E.
Before rules under section 40E prepared by the Authority are issued, the Minister may direct the Authority not to issue the rules.
In subsection (4) "the Minister" means—
the Secretary of State, so far as rules prepared by the Authority relate to bulk supply agreements to which all parties are—
a water undertaker whose area is wholly or mainly in England, or
a person who would, if the person's application for an appointment or variation is determined in accordance with the application, be such a water undertaker;
the Welsh Ministers, so far as rules prepared by the Authority relate to bulk supply agreements to which all parties are—
a water undertaker whose area is wholly or mainly in Wales, or
a person who would, if the person's application for an appointment or variation is determined in accordance with the application, be such a water undertaker;
the Secretary of State and the Welsh Ministers acting jointly, so far as rules prepared by the Authority relate to bulk supply agreements to which—
a person falling within paragraph (a)(i) or (ii) is party, and
a person falling within paragraph (b)(i) or (ii) is party.
A direction under subsection (4) must be given within the period of 28 days beginning with the day after the end of the consultation period, and rules may not be issued before that period of 28 days has expired.
This section is subject to section 40H.