Overview

This bill amends the Water Bill, primarily focusing on improving the efficiency and environmental impact of bulk water supplies and sewerage services. It introduces new consultation requirements, information-sharing duties, and regulatory powers to ensure more sustainable water management practices and fairer charging schemes. The bill also includes provisions for non-household premises retail exit, allowing water and sewerage undertakers to withdraw from this market under specific conditions.

Description

The Lords Amendments make several key changes:

Bulk Supply Agreements:

Amendments strengthen environmental considerations in bulk water supply agreements. The Environment Agency and/or the Natural Resources Body for Wales (NRBW) must be consulted on new, varied, or terminated agreements. Suppliers must provide requested information to the appropriate agency, enforced by the Water Services Regulation Authority (WSRA).

Consultation and Codes:

The bill mandates consultation with the appropriate agency (Environment Agency or NRBW) before making, varying, or terminating bulk supply agreements. It also requires the WSRA to issue codes of practice for these agreements and for sewerage main connection agreements.

Charges Schemes:

The amendments ensure that the Water Services Regulation Authority (WSRA) must issue rules about consulting the Council on proposed charges schemes. Failure to comply can result in a direction from the Authority.

Water Abstraction Reform:

The Secretary of State must produce a report on progress in reforming water abstraction management in England within five years of the Act's passage.

Retail Exit for Non-Household Premises:

A new clause allows water and sewerage undertakers in England to apply to withdraw from the non-household retail market under regulations to be determined by the Secretary of State. This includes provisions for customer protection, consultation, and transfer of undertakings to eligible licensees.

Flood Reinsurance Scheme (FRS):

Amendments clarify the FRS, including provisions for reinsurance premiums, information disclosure to insurers and policyholders, and data sharing with Her Majesty's Revenue and Customs (HMRC) for council tax information relevant to flood risk assessment.

Government Spending

The bill doesn't provide specific figures for increased or decreased government spending. However, there will be costs associated with the new regulatory functions of the WSRA, enforcement activities, and the preparation of reports. The costs of compensation under the new retail exit scheme will also depend on the number and nature of applications.

Groups Affected

• Water Undertakers: New obligations for consultation, information sharing, and compliance with codes of practice. Potential for financial impact due to retail exit and compensation payments.
• Sewerage Undertakers: Similar obligations to water undertakers, including consultation requirements and new codes of practice.
• Environment Agency and NRBW: Increased role in overseeing water resource management and consultation on bulk supply agreements.
• WSRA: Increased regulatory responsibilities, including issuing codes of practice, enforcing compliance, and managing compensation schemes.
• Non-Household Customers: Potential impacts from changes to bulk supply agreements and the retail exit scheme; protections are included in the retail exit provisions.
• HMRC: Potential increased workload related to data sharing for flood risk assessments.
• Insurers: Changes to flood reinsurance and information disclosure requirements.

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