This section applies if a relevant licence is varied in pursuance of a direction under section 54 on or after 1 January 2028 so as to reduce the quantity of water the holder is authorised to abstract.
A "relevant licence" is a licence to abstract water that—
is to abstract water in England only, and
is to remain in force until revoked.
No compensation is payable under section 61 if—
in each year during the 12 year period ending with the relevant date, the quantity of water abstracted in pursuance of the licence did not exceed 75% of the quantity of water the holder was authorised to abstract in that year, and
the ground for varying the licence is that the Secretary of State is satisfied the variation does not reduce the quantity of water the holder is authorised to abstract to a level below that which the holder reasonably requires.
In subsection (3) the "relevant date" is the date on which the notice of the proposals for varying the licence was served on the holder of the licence.