Before issuing rules under section 66E, the Authority must—
prepare a draft of the proposed rules, and
consult the relevant persons about the draft.
The relevant persons are—
the Secretary of State;
the Welsh Ministers;
the Council;
any water undertakers likely to be affected by the rules;
any water supply licensees likely to be affected by the rules;
such other persons as the Authority 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 66ED in preparing rules under section 66E.
Before rules under section 66E prepared by the Authority are issued, the Minister may direct the Authority not to issue the rules.
In subsection (5) "the Minister" means—
the Secretary of State, so far as rules prepared by the Authority relate to section 66D agreements affecting only the supply systems of water undertakers whose areas are wholly or mainly in England;
the Welsh Ministers, so far as rules prepared by the Authority relate to section 66D agreements affecting only the supply systems of water undertakers whose areas are wholly or mainly in Wales;
the Secretary of State and the Welsh Ministers acting jointly, so far as rules prepared by the Authority relate to section 66D agreements not falling within paragraph (a) or (b).
A direction under subsection (5) 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 66EC.