Water Industry Act 1991 (c. 56)

(The document as of February, 2008)

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Supplemental provisions of schemes

5 (1) A scheme under this Schedule may contain supplemental, consequential and transitional provision for the purposes of, or in connection with, the provision for the transfers or any other provision made by the scheme.

(2) Without prejudice to the generality of sub-paragraph (1) above, a scheme under this Schedule may provide--

(a) that for purposes connected with any transfers made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) the new appointee is to be treated as the same person in law as the existing appointee;

(b) that, so far as may be necessary for the purposes of or in connection with any such transfers, agreements made, transactions effected and other things done by or in relation to the existing appointee are to be treated as made, effected or done by or in relation to the new appointee;

(c) that, so far as may be necessary for the purposes of or in connection with any such transfers, references in any agreement (whether or not in writing) or in any deed, bond, instrument or other document to, or to any officer of, the existing appointee are to have effect with such modifications as are specified in the scheme;

(d) that proceedings commenced by or against the existing appointee are to be continued by or against the new appointee;

(e) that the effect of any transfer under the scheme in relation to contracts of employment with the existing appointee is not to be to terminate any of those contracts but is to be that periods of employment with the existing appointee are to count for all purposes as periods of employment with the new appointee;

(f) that disputes as to the effect of the scheme between the existing appointee and the new appointee, between either of them and any other appointee or between different companies which are other appointees are to be referred to such arbitration as may be specified in or determined under the scheme;

(g) that determinations on such arbitrations and certificates given jointly by two or more such appointees as are mentioned in paragraph (f) above as to the effect of the scheme as between the companies giving the certificates are to be conclusive for all purposes.

Duties of existing appointee after the scheme comes into force

6 (1) A scheme under this Schedule may provide for the imposition of duties on the existing appointee and on the new appointee to take all such steps as may be requisite to secure that the vesting in the new appointee, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

(2) The provisions of a scheme under this Schedule may require the existing appointee to comply with any directions of the new appointee in performing any duty imposed on the existing appointee by virtue of a provision included in the scheme under sub-paragraph (1) above.

(3) A scheme under this Schedule may provide that, until the vesting of any foreign property, right or liability of the existing appointee in the new appointee is effective under the relevant foreign law, it shall be the duty of the existing appointee to hold that property or right for the benefit of, or to discharge that liability on behalf of, the new appointee.

(4) Nothing in any provision included by virtue of this paragraph in a scheme under this Schedule shall be taken as prejudicing the effect under the law of any part of the United Kingdom of the vesting by virtue of the scheme in the new appointee of any foreign property, right or liability.

(5) A scheme under this Schedule may provide that, in specified cases, foreign property, rights or liabilities that are acquired or incurred by an existing appointee after the scheme comes into force are immediately to become property, rights or liabilities of the new appointee; and such a scheme may make the same provision in relation to any such property, rights or liabilities as can be made, by virtue of the preceding provisions of this paragraph, in relation to foreign property, rights and liabilities vested in the existing appointee when the scheme comes into force.

(6) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(7) Any expenses incurred by an existing appointee in consequence of any provision included by virtue of this paragraph in a scheme under this Schedule shall be met by the new appointee.

(8) Duties imposed on a company by virtue of this paragraph shall be enforceable in the same way as if they were imposed by a contract between the existing appointee and the new appointee.

Further transitional provision and local statutory provisions

7 (1) The Secretary of State may, if he thinks it appropriate to do so for the purposes of, or in connection with, any appointment or variation replacing a company as a relevant undertaker or any scheme under this Schedule, by order made by statutory instrument--

(a) make any provision which corresponds, in relation to any enactment referred to at the passing of the [1989 c. 15.] Water Act 1989 in Schedule 26 to that Act, to any provision originally made by that Schedule or makes similar provision in relation to any other enactment; or

(b) amend or repeal any local statutory provision.

(2) An order under this paragraph may--

(a) make provision applying generally in relation to local statutory provisions of a description specified in the order;

(b) make different provision for different cases, including different provision in relation to different persons, circumstances or localities; and

Section 23.

SCHEDULE 3 Special Administration Orders

Part I Modifications of the 1986 Act

General application of provisions of 1986 Act

1 Where a special administration order has been made, sections 11 to 15, 17 to 23 and 27 of the 1986 Act (which relate to administration orders under Part II of that Act) shall apply, with the modifications specified in the following provisions of this Part of this Schedule--

(a) as if references in those sections to an administration order were references to a special administration order and references to an administrator were references to a special administrator; and

(b) where the company in relation to which the order has been made is a statutory water company that is not a limited company, as if references to a company included references to such a company.

Effect of order

2 In section 11 of the 1986 Act (effect of order), as applied by this Part of this Schedule--

(a) the requirement in subsection (1)(a) that any petition for the winding up of the company shall be dismissed shall be without prejudice to the special administration order in a case where the order is made by virtue of section 25 of this Act;

(b) the references in subsections (1)(b), (3)(b) and (4) to an administrative receiver, in relation to a statutory water company that is not a limited company, shall include references to any receiver whose functions in relation to that company correspond to those of an administrative receiver in relation to a limited company; and

(c) the reference in subsection (3)(d) to proceedings shall include a reference to any proceedings under or for the purposes of section 18 of this Act.

Appointment of special administrator

3 In section 13 of the 1986 Act (appointment of administrator), as applied by this Part of this Schedule, for subsection (3) there shall be substituted the following subsection--

" (3) An application for an order under subsection (2) may be made--

(a) by the Secretary of State;

(b) with the consent of the Secretary of State, by the Director General of Water Services;

(c) by any continuing special administrator of the company or, where there is no such special administrator, by the company, the directors or any creditor or creditors of the company. "

General powers of special administrator

4 In section 14 of the 1986 Act (general powers of administrator), as applied by this Part of this Schedule--

(a) in subsection (1)(b), the reference to the powers specified in Schedule 1 to that Act shall be deemed to include a reference to a power to act on behalf of the company for the purposes of this Act, any local statutory provision or the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding an appointment under Chapter I of Part II of this Act; and

(b) in subsection (4), the reference to a power conferred by the company's memorandum or articles of association shall be deemed to include a reference to a power conferred by a local statutory provision or by virtue of the company's holding such an appointment.

Power to deal with charged property

5 (1) Section 15 of the 1986 Act (power to deal with charged property), as applied by this Part of this Schedule, shall have effect as follows.

(2) In subsection (5)(b) (amount to be paid to chargeholder not to be less than open market value), for the words "in the open market by a willing vendor" there shall be substituted the words "for the best price which is reasonably available on a sale which is consistent with the purposes of the special administration order".

(3) Subsections (7) and (8) (notice to registrar) shall not apply where the company in relation to which the special administration order is made is a statutory water company that is not a limited company.

Duties of special administrator

6 (1) Section 17 of the 1986 Act (duties of administrator), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsection (2) there shall be substituted the following subsection--

" (2) Subject to any directions of the court, it shall be the duty of the special administrator to manage the affairs, business and property of the company in accordance with proposals, as for the time being revised under section 23, which have been prepared for the purposes of that section by him or any predecessor of his. "

(3) In subsection (3), paragraph (a) (right of creditors to require the holding of a creditors' meeting) shall be omitted.

Discharge of order

7 (1) Section 18 of the 1986 Act (discharge and variation of administration order), as applied by this Part of this Schedule, shall have effect as follows.

(2) For subsections (1) and (2) there shall be substituted the following subsection--

" (1) An application for a special administration order to be discharged may be made--

(a) by the special administrator, on the ground that the purposes of the order have been achieved; or

(b) by the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services, on the ground that it is no longer necessary that those purposes are achieved. "

(3) In subsection (3), the words "or vary" shall be omitted.

(4) In subsection (4), the words "or varied" and "or variation" shall be omitted and for the words "to the registrar of companies" there shall be substituted--

(a) where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, the words "to the Director General of Water Services"; and

(b) in any other case, the words "to the registrar of companies and to the Director General of Water Services".

Notice of making of order

8 In section 21(2) of the 1986 Act (notice of order to be given by administrator), as applied by this Part of this Schedule, for the words "to the registrar of companies" there shall be substituted--

(b) in any other case, the words "to the registrar of companies, to the Director General of Water Services".

Statement of proposals

9 In section 23 of the 1986 Act (statement of proposals), as applied by this Part of this Schedule, for subsections (1) and (2) there shall be substituted the following subsections--

" (1) Where a special administration order has been made, the special administrator shall, within 3 months (or such longer period as the court may allow) after the making of the order, send a statement of his proposals for achieving the purposes of the order--

(a) to the Secretary of State and to the Director General of Water Services;

(b) so far as he is aware of their addresses, to all creditors of the company; and

(c) except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies;

and may from time to time revise those proposals.

(2) If at any time--

(a) the special administrator proposes to make revisions of the proposals for achieving the purposes of the special administration order; and

(b) those revisions appear to him to be substantial,

the special administrator shall, before making those revisions, send a statement of the proposed revisions to the Secretary of State, to the Director General of Water Services, (so far as he is aware of their addresses) to all creditors of the company and, except where the company in relation to which the special administration order is made is a statutory water company that is not a limited company, to the registrar of companies.

(2A) Where the special administrator is required by subsection (1) or (2) to send any person a statement before the end of any period or before making any revision of any proposals, he shall also, before the end of that period or, as the case may be, before making those revisions either--

(a) send a copy of the statement (so far as he is aware of their addresses) to all members of the company; or

(b) publish in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge. "

Applications to court

10 (1) Section 27 of the 1986 Act (protection of interests of creditors and members), as applied by this Part of this Schedule, shall have effect as follows.

(2) After subsection (1) there shall be inserted the following subsection--

" (1A) At any time when a special administration order is in force the Secretary of State or, with the consent of the Secretary of State, the Director General of Water Services may apply to the High Court by petition for an order under this section on the ground that the special administrator has exercised or is exercising, or proposing to exercise, his powers in relation to the company in a manner which--

(a) will not best ensure the achievement of the purposes of the order; or

(b) without prejudice to paragraph (a) above, involves either a contravention of the conditions of the company's appointment under Chapter I of Part II of the Water Industry Act 1991 or of any statutory or other requirement imposed on the company in consequence of that appointment. "

(3) In subsection (3) (order not to prejudice or prevent voluntary arrangements or administrator's proposals), for paragraphs (a) and (b) there shall be substituted the words "the achievement of the purposes of the order".

(4) Subsections (4)(d) and (6) (power of court to order discharge) shall be omitted.

Part II Supplemental

General adaptations and saving

11 (1) Subject to the preceding provisions of this Schedule, references in the 1986 Act (except in sections 8 to 10 and 24 to 26), or in any other enactment passed before 6th July 1989, to an administration order under Part II of that Act, to an application for such an order and to an administrator shall include references, respectively, to a special administration order, to an application for a special administration order and to a special administrator.

(2) Subject as aforesaid and to sub-paragraph (3) below, references in the 1986 Act, or in any other enactment passed before 6th July 1989, to an enactment contained in Part II of that Act shall include references to that enactment as applied by section 24 of this Act or Part I of this Schedule.

(3) Sub-paragraphs (1) and (2) above shall apply in relation to a reference in an enactment contained in Part II of the 1986 Act only so far as necessary for the purposes of the operation of the provisions of that Part as so applied.

(4) The provisions of this Schedule shall be without prejudice to the power conferred by section 411 of the 1986 Act (company insolvency rules), as modified by sub-paragraphs (1) and (2) above.

Interpretation

12 (1) In this Schedule "the 1986 Act" means the [1986 c. 45.] Insolvency Act 1986.

(2) In this Schedule, and in any modification of the 1986 Act made by this Schedule, "special administrator", in relation to a special administration order, means any person appointed in relation to that order for the purposes of section 23(1) of this Act; and in any such modification "special administration order" has the same meaning as in this Act.

Section 28.

SCHEDULE 4 Customer Service Committees

Sub-committees

1 A customer service committee may, with the approval of the Director --

(a) establish local and other sub-committees through which the customer service committee may carry out such of its functions as it may determine;

(b) appoint such persons as it may determine (including persons who are not members of the committee) to be members of any such sub-committee; and

(c) regulate the procedure of any such sub-committee and, subject to paragraph 3 below, the terms and conditions of service of any person appointed to be a member of any such sub-committee.

Remuneration, pensions etc. of the chairman of a customer service committee

2 (1) There shall be paid to the chairman of a customer service committee such remuneration, and such travelling and other allowances, as the Director may determine.

(2) There shall be paid--

(a) such pension, allowances or gratuities to or in respect of a person who has held or holds office as the chairman of a customer service committee; or

(b) such payments towards provision for the payment of a pension, allowances or gratuities to or in respect of such a person,

as may be determined by the Director.

(3) If, when any person ceases to hold office as such a chairman, the Director determines that there are special circumstances which make it right that that person should receive compensation, there may be paid to him a sum by way of compensation of such amount as may be determined by the Director.

(4) The approval of the Treasury shall be required for the making of a determination under this paragraph.

Expenses of other members of a customer service committee etc.

3 Subject to paragraph 2 above, neither the members of a customer service committee nor the members of any sub-committee of any such committee shall be paid any sums by the Director for or in respect of their services except--

(a) in the case of services as a member of a customer service committee, sums reimbursing the member for loss of remuneration, for travelling expenses or for any other out-of-pocket expenses; and

(b) in the case of services as a member of a sub-committee of a customer service committee, sums reimbursing the member for travelling expenses or for any other out-of-pocket expenses which do not relate to loss of remuneration.

Staff

4 (1) The Director may, with the approval of the Treasury as to numbers and terms and conditions of service, appoint such officers and employees of a customer service committee or of any sub-committee of a customer service committee as he may determine.

(2) Anything authorised or required by or under this Act to be done by a customer service committee may be done by any of the officers or employees of the committee, or of any of its sub-committees, who has been authorised for the purpose, whether generally or specially, by the committee or, in accordance with the terms of its appointment, by a sub-committee of the committee.

Financial provisions

5 (1) The following shall be paid by the Director out of money provided by Parliament, that is to say--

(a) any sums required to be paid to or in respect of any person under paragraph 2 or 3 above; and

(b) any expenses incurred by a customer service committee in accordance with any statement approved under sub-paragraph (3) below.

(2) A customer service committee shall prepare in respect of each financial year a statement of the expenses which it expects to incur in respect of that year--

(a) in relation to officers and employees of the committee and its sub-committees; or

(b) otherwise for the purposes of, or in connection with, the carrying out of its functions;

and that statement shall be sent to the Director, in the case of the statement in respect of the financial year current at the establishment of the committee, as soon as practicable after the establishment of the committee and, in any other case, before the beginning of the financial year to which the statement relates.

(3) The Director shall consider any statement sent to him under sub-paragraph (2) above and shall either approve the statement or approve it with such modifications as he considers appropriate.

Section 65.

SCHEDULE 5 Procedure for Orders relating to Pressure and Constancy of Supply

Applications for orders

1 (1) Where the Director or a water undertaker applies to the Secretary of State for an order under section 65(5) of this Act, the applicant shall--

(a) submit to the Secretary of State a draft of the order applied for;

(b) publish a notice with respect to the application, at least once in each of two successive weeks, in one or more newspapers circulating in the locality which would be affected by the provision proposed to be made by the order;

(c) not later than the date on which that notice is first published serve a copy of the notice on every affected local authority and every affected water undertaker; and

(d) publish a notice in the London Gazette which–

(i) states that the draft order has been submitted to the Secretary of State;

(ii) names every local authority on whom a notice is required to be served under this paragraph;

(iii) specifies a place where a copy of the draft order and of any relevant map or plan may be inspected; and

(iv) gives the name of every newspaper in which the notice required by virtue of paragraph (b) above was published and the date of an issue containing the notice.

(2) The notice required by virtue of sub-paragraph (1)(b) above to be published with respect to an application for an order shall--

(a) state the general effect of the order applied for;

(b) specify a place where a copy of the draft order and of any relevant map or plan may be inspected by any person free of charge at all reasonable times during the period of twenty-eight days beginning with the date of the first publication of the notice; and

(c) state that any person may, within that period, by notice to the Secretary of State object to the making of the order.

(3) For the purposes of subsection (1)(c) above a local authority or a water undertaker which is not the applicant shall be affected by an application for an order if its area includes the whole or any part of the locality which would be affected by the provision proposed to be made by the order.

Supply of copies of draft orders

2 The applicant for an order under section 65(5) of this Act shall, at the request of any person and on payment by that person of such charge (if any) as the applicant may reasonably require, furnish that person with a copy of the draft order submitted to the Secretary of State under paragraph 1 above.

Modifications of proposals

3 (1) On an application for an order under section 65(5) of this Act, the Secretary of State may make the order either in the terms of the draft order submitted to him or, subject to sub-paragraph (2) below, in those terms as modified in such manner as he thinks fit, or may refuse to make an order.

(2) The Secretary of State shall not make such a modification of a draft order submitted to him as he considers is likely adversely to affect any persons unless he is satisfied that the applicant for the order has given and published such additional notices, in such manner, as the Secretary of State may have required.

Consideration of objections etc.

4 Where an application for an order to which this Schedule applies has been made, the Secretary of State may, if he considers it appropriate to do so, hold a local inquiry before making any order on the application.

Sections 71 to 84 & 162 to 172.

SCHEDULE 6 Supplemental Provisions relating to Rights of Entry

Part I Rights requiring Notice for Entry to Non-business Premises

Notice of entry

1 (1) Where this Part of this Schedule applies to any right of entry conferred by a provision of this Act, admission to any premises which are not business premises shall not be demanded as of right by virtue of that provision, unless twenty-four hours notice of the intended entry has been given to the occupier of the premises.

(2) In this paragraph "business premises" means--

(a) any factory; or

(b) any place in which persons are employed otherwise than in domestic service;

and in this sub-paragraph "factory" has the same meaning as in the [1961 c. 34.] Factories Act 1961.

Warrants to exercise right

2 (1) Subject to sub-paragraph (3) below, if it is shown to the satisfaction of a justice of the peace, on sworn information in writing--

(a) that any one or more of the conditions specified in sub-paragraph (2) below is fulfilled in relation to any premises which a person is entitled to enter by virtue of a right of entry to which this Part of this Schedule applies; and

(b) that there is reasonable ground for entry to the premises for any purpose for which the right is exercisable,

the justice may by a warrant under his hand authorise that person to enter the premises, if need be by force.

(2) The conditions mentioned in sub-paragraph (1) above are--

(a) that admission to the premises has been refused to the person having the right to enter them;

(b) that such refusal is apprehended;

(d) that the case is one of urgency;

(e) that an application for admission would defeat the object of the entry.

(3) A warrant under this Part of this Schedule shall not be issued by a justice of the peace in a case in which he is satisfied that the condition mentioned in paragraph (a) or (b) of sub-paragraph (2) above is fulfilled unless he is also satisfied--

(a) that notice of the intention to apply for a warrant has been given to the occupier;

(b) that a condition mentioned in either of paragraphs (c) and (d) of that sub-paragraph is also fulfilled in relation to the premises; or

(4) Every warrant under this Part of this Schedule shall continue in force until the purpose for which the entry is necessary has been fulfilled.

(5) A person leaving any unoccupied premises which he has entered by virtue of a warrant under this Part of this Schedule shall leave them as effectually secured against trespassers as he found them.

Supplementary power of person making entry

3 Any person entitled to enter any premises by virtue of a right to which this Part of this Schedule applies, or of a warrant under this Part of this Schedule, may take with him such other persons as may be necessary.

Obstruction of person exercising right

4 Any person who wilfully obstructs any person upon whom a right of entry has been conferred by virtue of--

(a) any provision of this Act relating to a right of entry to which this Part of this Schedule applies; or

(b) a warrant under this Part of this Schedule,

shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 1 on the standard scale.

Duty of persons exercising rights to maintain confidentiality

5 (1) Without prejudice to section 206 of this Act and subject to sub-paragraphs (2) and (3) below, any person who is admitted to any premises in compliance--

(a) with any provision of this Act relating to a right of entry to which this Part of this Schedule applies; or

(b) with a warrant under this Part of this Schedule,

shall be guilty of an offence under this paragraph if he discloses to any person any information obtained by him there with regard to any manufacturing process or trade secret.

(2) A person shall not be guilty of an offence under this paragraph in respect of any disclosure made in the performance of his duty.

(3) For the purposes of the application of this Part of this Schedule to the right conferred by section 171 of this Act, the reference to premises in subsection (1) above shall have effect as a reference only to business premises, within the meaning of paragraph 1 above.

(4) A person who is guilty of an offence under this paragraph, other than such a person as is mentioned in sub-paragraph (5) below, shall be liable--

(a) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment, to imprisonment for a term not exceeding three months or to a fine or to both.

(5) A person who is guilty of an offence under this paragraph by virtue of the application of this Part of this Schedule to the rights conferred by section 171 of this Act shall be liable, on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding level 3 on the standard scale or to both.

Part II Other Rights of Entry and related Powers

Notice of entry

6 (1) Without prejudice to any power exercisable by virtue of a warrant under this Part of this Schedule, no person shall make an entry into any premises by virtue of any right or power to which this Part of this Schedule applies except--

(a) in an emergency; or

(b) at a reasonable time and after the required notice of the intended entry has been given to the occupier of the premises.

(2) For the purposes of this paragraph the required notice is--

(a) in the case of the rights and powers conferred by virtue of any of sections 74(4), 84(2) and (3), 86(4) and 170(1)(c) and (3) of this Act, twenty-four hours' notice; and

(b) in any other case, seven days' notice.

(3) For the purposes of the application of this Part of this Schedule to any right or power conferred by section 168 of this Act the reference in sub-paragraph (1) above to an emergency--

(a) in relation to any entry to premises for the purposes of, or for purposes connected with, the exercise or proposed exercise of any power in relation to a street, includes a reference to any circumstances requiring the carrying out of emergency works within the meaning of Part III of the [1991 c. 22.] New Roads and Street Works Act 1991; and

(b) in relation to any other entry to premises, includes a reference to any danger to property and to any interruption of a supply of water provided to any premises by any person and to any interruption of the provision of sewerage services to any premises.

(4) Until the coming into force of section 52 of the New Roads and Street Works Act 1991, sub-paragraph (3)(a) above shall have effect as if the reference to Part III of that Act were a reference to the [1950 c. 39.] Public Utilities Street Works Act 1950; but nothing in this sub-paragraph shall be taken to prejudice the power of the Secretary of State under that Act of 1991 to make an order bringing that section 52 into force on different days for different purposes (including the purposes of this paragraph).

(5) For the purposes of the application of this Part of this Schedule to the rights and other powers conferred by section 172 of this Act sub-paragraph (1) above shall have effect as if the power in an emergency to make an entry to any premises otherwise than at a reasonable time and after the required notice were omitted.

Warrant to exercise right or power

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