Section 51CD: Rules about charges in connection with a section 51A agreement, Water Industry Act 1991

The Authority may issue rules about charges that may be imposed by a water undertaker under a section 51A agreement.

The rules may in particular make provision about—

what types of charge may be imposed;

the amount or the maximum amount, or a method for determining the amount or maximum amount, of any type of charge;

principles for determining what types of charge may or may not be imposed;

principles for determining the amount of any charge that may be imposed;

publication of the charges that may be imposed.

The rules may require a water undertaker, upon declaring a water main or service pipe to be vested in the undertaker in accordance with a section 51A agreement, to pay to the other party to the agreement an amount (which may be nil) determined in accordance with the rules.

Rules made by virtue of subsection (3) may, in particular, provide for the determination to take into account—

revenue that might be derived from the water main or service pipe in question;

costs that might have been incurred in providing such a water main or service pipe.

The rules may also make provision as to—

the amount of security that may be required by a water undertaker for the purposes of any charges imposed by the water undertaker under a section 51A agreement;

the type of security that may be required;

the payment of interest on a sum deposited with a water undertaker by way of security.

If the Authority considers that a water undertaker is not acting as required by rules under this section, the Authority may give the undertaker a direction to do, or not to do, a particular thing specified in the direction.

It is the duty of a water undertaker to comply with a direction under subsection (6), and this duty is enforceable by the Authority under section 18.

The rules may make different provision for different water undertakers or descriptions of undertaker.

The Authority may from time to time revise rules issued under this section and issue revised rules.

The Authority must issue revised rules if—

guidance is issued under section 51CG, and

the Authority, having regard to that guidance, considers that it is appropriate to revise the rules.

Revised rules may include provision for applying any of their revisions to section 51A agreements made before the revised rules come into effect.

Section 51CD: Rules about charges in connection with a section 51A agreement

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