Section 17D: The threshold requirement, Water Industry Act 1991

This section applies for the purpose of construing the reference to the threshold requirement in paragraph 7(b) of Schedule 2A in relation to the supply of water to any premises in accordance with a restricted retail authorisation.

The requirement is that, at the time when the water supply licensee first enters into an undertaking with a customer to give the supply, the total quantity of water estimated to be supplied to the premises annually pursuant to the undertaking is not less than—

5 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in England, and

50 megalitres, in the case of premises supplied with water using the supply system of a water undertaker whose area is wholly or mainly in Wales.

Any estimate of the quantity of water to be supplied to any premises for the purposes of subsection (2) above shall be made in accordance with guidance issued from time to time by the Authority with the approval of the Welsh Ministers.

Any guidance issued under subsection (3) above may, in particular—

specify—

the factors to be, and not to be, taken into account;

the assumptions to be made; and

the method of calculation to be employed,

in making estimates; and

make provision as to the commencement of the annual periods by reference to which estimates are to be made.

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The Welsh Ministers may make provision by regulations as to the circumstances in which a water supply licensee is not, for the purposes of subsection (2) above, to be treated as entering into an undertaking with a new customer to give a supply of water to any premises ....

The Welsh Ministers may by regulations amend subsection (2) above by substituting, for the quantity of water for the time being specified there, a different quantity of water ....

Regulations under subsection (8) above—

shall include provision for the amendment made by the regulations not to apply in relation to any undertaking entered into before the date on which the regulations come into force; and

may include provision for that amendment not to apply in relation to any undertaking which is proposed, but not entered into, before that date.

A statutory instrument containing regulations under subsection (8) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the Assembly.

Before making regulations under subsection (8) above, the Welsh Ministers shall consult—

the Authority; and

such other persons (if any) as the Welsh Ministers think it appropriate to consult.

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Section 17D: The threshold requirement

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