Water Supply Licence (Modification of Standard Conditions) Order 2005 c.2033

Water Supply Licence (Modification of Standard Conditions) Order 2005 No. 2033

Summary:

The Water Industry Act 1991 as amended by the Water Act 2003, requires water undertakers to grant licensed water suppliers access to their supply systems under certain conditions and for certain purposes. A retail licence permits a licensed water supplier to use a water undertaker's supply system to supply water to eligible premises of customers. A combined licence additionally permits a licensed water supplier to introduce water into a water undertaker's supply system in order to supply that water to eligible premises of customers.
The Act enables the Secretary of State, after consulting the National Assembly for Wales, to determine standard conditions in water supply licences. Once water supply licences have been granted, the Act permits standard licence conditions to be modified only in certain circumstances. Section 17J of the Act enables the Water Services Regulation Authority (and until it is fully established, the Director General of Water Services) ("Ofwat") to modify standard licence conditions if certain conditions are fulfilled.
One such condition is that specified percentages of licence holders (by number or by market share) do not object to the modifications. Only certain holders of licences can object to certain modifications. Under section 17J(13) of the Act, these are known as "relevant licence holders".
Article 3 of this Order specifies the relevant percentages. Modifications to standard licence conditions cannot proceed without a reference to the Competition Commission if objections are made by twenty percent or more of relevant licence holders measured by number or by market share.
Article 4 of this Order specifies how each relevant licence holder will be weighted for the purposes of measuring market share. For relevant licence holders who have given notice of objection, market share must be measured by reference to total volume of water supplied by them to the premises of customers during twelve months relative to the total volume of water supplied by all relevant licence holders to the premises of customers during the same period. Subject to certain conditions, Ofwat must determine when the end of the twelve month period will fall.

Made Under:

Water Industry Act 1991 (C. 56) - section 17J(6)

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