Section 63AC: Interim duty: domestic and non-domestic supply, Water Industry Act 1991

This section applies where—

a water supply licensee ("the previous licensee") ceases to supply any premises with water, and

the owner or occupier of the premises has not notified the water undertaker in whose area the premises are that—

he has made arrangements for the continuation of the supply of water to the premises, or

he intends any supply of water to the premises to cease.

It is to be the duty of the water undertaker to continue the supply of water to the premises which was made by the previous licensee.

But the Authority may give a direction to an eligible water supply licensee (an "interim licensee") providing that it is to be the duty of that licensee to continue the supply instead.

An "eligible water supply licensee" is a water supply licensee with a retail authorisation or a restricted retail authorisation who has elected to be an eligible water supply licensee for the purposes of this section in accordance with the code issued under section 63AF.

If the Authority proposes to give a direction under subsection (3) to an eligible water supply licensee—

the Authority must give notice of the proposed direction to the licensee, and

the licensee may, in accordance with the code issued under section 63AF, temporarily suspend the election made by the licensee as mentioned in subsection (4), so that the proposed direction cannot be given to the licensee.

Where a supply is made by an undertaker under subsection (2)—

the charges payable in respect of the supply are to be fixed from time to time by a charges scheme under section 143, and

subject to subsection (12), the supply is to be made until—

a supply is made by an interim licensee by virtue of a direction under subsection (3),

a supply is made by a water supply licensee following the service of a notice under section 63AA or 63AB;

a supply is made under section 52 or 55, or

a notice is served by the undertaker on the owner or occupier of the premises stating that the supply is to be discontinued (subject to subsection (8)),

whichever is the earlier.

Where a supply is made by an interim licensee by virtue of a direction given under subsection (3)—

the supply by the interim licensee is to be treated as having begun on the date on which the previous licensee ceased to supply the premises,

the terms and conditions in accordance with which the supply is to be made are to be—

those provided for by a scheme made under section 63AE, or

such other terms and conditions as may be agreed between the interim licensee and the owner or occupier of the premises, and

subject to subsection (12), the supply is to be made until it is discontinued in accordance with the terms and conditions mentioned in paragraph (b).

A notice under subsection (6)(b)(iv) may not be served before the end of the period of three months beginning with the day on which the supply by the previous licensee ceased.

Subsections (10) and (11) apply if, within a period of three months beginning with the date on which the previous licensee ceased to supply the premises with water, the owner or occupier of the premises serves notice—

under section 63AA or 63AB, on the water undertaker continuing the supply under subsection (2), or

in accordance with the terms and conditions mentioned in subsection (7)(b), on the interim licensee continuing the supply by virtue of a direction given under subsection (3),

that instead another water supply licensee ("the new licensee") is to continue the supply of water to the premises which was made by the previous licensee.

The notice must—

specify the time from which the new licensee is to continue the supply in question, and

be served in accordance with the code issued under section 63AF.

In the case of a notice served as mentioned in subsection (9)(a), the supply by the new licensee is to be treated as having begun on the date on which the previous licensee ceased to supply the premises.

Supplies of water under this section are subject to sections 60 to 63.

Section 63AC: Interim duty: domestic and non-domestic supply

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