Section 51B: Adoption at a future date: orders by Authority, Water Industry Act 1991

This section applies where a person constructing or proposing to construct a water main or service pipe makes a request to a water undertaker under section 51A(3).

The person or the water undertaker may apply to the Authority for an order under subsection (4) if the person and the water undertaker have not made such agreement as was requested by the person.

The Authority may, on the application of the person or the water undertaker, make an order under subsection (4) if the Authority is satisfied that—

it is appropriate for work proposed to be done by a person other than the water undertaker to be so done, and

the person and the water undertaker cannot reach agreement within a reasonable time.

The Authority may by order—

require the water undertaker to give such undertakings as to the vesting of the water main or service pipe in the undertaker as the Authority may specify, and

impose such terms and conditions as regards taking the benefit of the undertakings as the Authority may specify.

An order under subsection (4) has effect as an agreement under section 51A between the person and the water undertaker.

The Authority may not, by order under subsection (4), require a water undertaker to vest in itself a water main or service pipe as regards which there is a contravention of any of the requirements of section 74 that are prescribed for the purposes of this subsection.

The Authority may not make an order under subsection (4) with respect to a water main or service pipe that is situated within the area of another water undertaker, until either—

that other undertaker has consented in writing to the making of the order, or

the Minister, on an application made to the Minister, has disapplied paragraph (a), either unconditionally or subject to such conditions as the Minister thinks fit.

"The Minister" means—

the Secretary of State, as regards the consent of a water undertaker whose area is wholly or mainly in England;

the Welsh Ministers, as regards the consent of a water undertaker whose area is wholly or mainly in Wales.

Neither the CMA nor the Authority may exercise, in respect of an agreement for the vesting of a water main or service pipe in a water undertaker at a future date, the powers conferred by—

section 32 of the Competition Act 1998 (directions in relation to agreements);

section 35(2) of that Act (interim directions).

Subsection (9)(b) does not apply to the exercise of powers in respect of conduct—

which is connected with an agreement for the vesting of a water main or service pipe at a future date, and

in respect of which section 35(1) of the Competition Act 1998 applies because of an investigation under section 25 of that Act relating to a suspected infringement of the Chapter 2 prohibition imposed by section 18(1) of that Act.

In exercising its functions under this section, the Authority must have regard to the desirability of—

facilitating effective competition within the water supply industry;

the recovery by the water undertaker of the expenses of complying with its obligations by virtue of this section and securing a reasonable return on its capital;

the ability of the water undertaker to meet its existing obligations, and likely future obligations, to supply water without having to incur unreasonable expenditure in carrying out works;

not putting at risk the ability of the water undertaker to meet its existing obligations, or likely future obligations, to supply water.

Section 51B: Adoption at a future date: orders by Authority

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