Overview

This bill amends the Water Bill, primarily focusing on improving the efficiency and environmental impact of water resource management. Key changes include stricter regulations for bulk water supply agreements, mandatory consultation processes, and enhanced information sharing, alongside provisions for retail market exit for non-household water and sewerage services. The bill also reforms water abstraction and flood insurance arrangements.

Description

Bulk Water Supply Agreements

The amendments introduce a requirement for those proposing to make, vary, or terminate bulk water supply agreements to consult with the appropriate agency (Environment Agency or Natural Resources Body for Wales, depending on the parties involved). The bill mandates that a code of practice for this consultation be created. Suppliers under bulk agreements must provide information to the appropriate agency as requested.

Main Connection Agreements

Similar consultation requirements are introduced for main connection agreements with sewerage undertakers.

Codes of Practice

The bill mandates the creation of codes of practice for bulk water supply agreements and related matters, rather than allowing for optional codes. The bill also requires regular review of these codes.

Charges Schemes

The bill mandates rules regarding consultation with the Council about proposed charges schemes and allows for directions to be given to undertakers who don't comply.

Water Abstraction

The Secretary of State must produce a report on progress in reforming water abstraction management in England.

Flood Reinsurance Scheme

Amendments clarify and enhance the Flood Reinsurance Scheme, including provisions about the disclosure of council tax information to assist in risk assessment and the setting of insurance premiums.

Retail Exit for Non-Household Premises

A new chapter is added, allowing water and sewerage undertakers to apply to withdraw from the non-household retail market in England. This process includes requirements for consultation, application procedures, transfer of undertakings, and protection for affected customers. The Secretary of State gains regulatory power to oversee this process.

Government Spending

The bill does not provide specific figures for government spending. However, the introduction of new regulatory requirements, including consultation processes, reporting duties, and the potential for compensation payments under the retail exit provisions, may lead to increased government expenditure. Conversely, improved water resource management and flood risk mitigation may lead to cost savings in the long term.

Groups Affected

• Water Undertakers: New regulatory burdens and consultation requirements for bulk water supply agreements, and potential for financial impact from retail exit provisions.
• Sewerage Undertakers: New regulatory burdens and consultation requirements for main connection agreements and potential for financial impact from retail exit provisions.
• Environment Agency and Natural Resources Body for Wales: Increased responsibilities for consultation and oversight.
• Consumers (both household and non-household): Potential impact from changes in water supply and sewerage arrangements, including retail market exit.
• Insurers: Changes to flood insurance regulations and information sharing requirements.
• Local Councils: Increased consultation on charges schemes.

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