Amendments made: 81, in clause 10, page 30, line 8, leave out ‘review’ and insert ‘revise’.

Amendment 82, in clause 10, page 31, line 29, leave out ‘specify’ and insert ‘make provision about’.—(Dan Rogerson.)

I beg to move amendment 13, in clause 10, page 31, line 37, at end insert—

‘(2A) The rules may require a water undertaker, upon declaring a water main or service pipe to be vested in the undertaker in accordance with a section 51A agreement, to pay to the other party to the agreement an amount (which may be nil) determined in accordance with the rules.

(2B) Rules made by virtue of subsection (2A) may, in particular, provide for the determination to take into account—

(a) revenue that might be derived from the water main or service pipe in question;

(b) costs that might have been incurred in providing such a water main or service pipe.

(2C) The rules may also make provision as to—

(a) the amount of security that may be required by a water undertaker for the purposes of any charges imposed by the water undertaker under a section 51A agreement;

(b) the type of security that may be required;

(c) the payment of interest on a sum deposited with a water undertaker by way of security.’.

With this it will be convenient to discuss Government amendment 20.

Clauses 10 and 11 are concerned with agreements made between developers and incumbent water companies about the adoption of water infrastructure and sewer infrastructure. The clauses will insert new sections to allow Ofwat to create rules about charges in relation to the agreements. The amendments will allow the asset payments, which are made by an incumbent water company to a developer upon the vesting of a self-laid water main, to be included in the rules about charges. They will also allow the asset payments that are made by an incumbent water company to a developer upon the vesting of self-laid sewer, to be included in the rules about charges. They will provide clarity about the process and will allow the developer and the water company to know what to expect.

Amendment 13 agreed to.

Amendments made: 83, in clause 10, page 31, line 37, at end insert—

( ) publication of the charges that may be imposed.’.

Amendment 14, in clause 10, page 32, line 1, leave out ‘A code’ and insert ‘The rules’.

Amendment 84, in clause 10, page 32, line 3, leave out ‘review’ and insert ‘revise’.

Amendment 85, in clause 10, page 32, line 4, at end insert—

‘( ) The Authority must issue revised rules if—

(a) guidance is issued under section 51CF, and

(b) the Authority, having regard to that guidance, considers that it is appropriate to revise the rules.’.

Amendment 86, in clause 10, page 32, line 10, leave out ‘any’ and insert ‘the’.

Amendment 15, in clause 10, page 32, line 18, at end insert—

‘( ) The Authority must specify the period (“the consultation period”) within which the relevant persons may make representations about the proposed rules.’.

Amendment 16, in clause 10, page 32, line 20, at end insert—

‘(4) Before rules under section 51CD prepared by the Authority are issued, the Minister may direct the Authority not to issue the rules.

(5) In subsection (4) “the Minister” means—

(a) the Secretary of State, so far as the rules relate to section 51A agreements for the vesting of water mains or service pipes in water undertakers whose areas are wholly or mainly in England;

(b) the Welsh Ministers, so far as the rules relate to section 51A agreements for the vesting of water mains or service pipes in water undertakers whose areas are wholly or mainly in Wales.

(6) A direction under subsection (4) must be given within the period of 28 days beginning with the day after the end of the consultation period, and rules may not be issued before that period of 28 days has expired.’.

Amendment 17, in clause 10, page 32, line 20, at end insert—

‘( ) This section is subject to section 51CEA.

51CEA Rules under section 51CD: minor or urgent revisions

(1) This section applies if the Authority proposes to issue revised rules under section 51CD and, in the view of the Authority, the revision or each of the revisions proposed to be made is—

(a) a revision for which consultation is unnecessary, or

(b) a revision that it is necessary or desirable to make without delay.

(2) Section 51CE does not apply to the proposed revised rules.

(3) Before issuing the revised rules, the Authority must give notice to the Minister of its intention to issue revised rules.

(4) Before the revised rules are issued, the Minister may direct the Authority not to issue the revised rules.

(5) A direction under subsection (4) must be given within the period of 14 days beginning with the day after the day on which notice is given under subsection (3), and the Authority may not issue the revised rules in question before—

(a) that period of 14 days expires, or

(b) the Minister notifies the Authority that no direction under subsection (4) will be given in relation to the revised rules,

whichever is the sooner.

(6) Once the Authority has issued the revised rules, it must give notice as soon as reasonably practicable of—

(a) the issuing of the revised rules, and

(b) as regards each revision contained in them, whether in the view of the Authority the revision falls within paragraph (a) or (b) of subsection (1).

(7) Notice under subsection (6) is to be given to such persons as the Authority considers appropriate.

(8) Unless the Authority gives notice that a revision in revised rules is in the view of the Authority a revision falling within subsection (1)(a), the revision ceases to have effect at the end of the period of six months beginning with the day after that on which the revised rules are issued.

(9) In this section “the Minister” has the meaning given by section 51CE.’.

Amendment 18, in clause 10, page 32, leave out lines 37 to 41 and insert—

‘(7) In this section “the Minister” means—

(a) the Secretary of State, so far as the guidance is as to the content of rules relating to section 51A agreements for the vesting of water mains or service pipes in water undertakers whose areas are wholly or mainly in England;

(b) the Welsh Ministers, so far as the guidance is as to the content of rules relating to section 51A agreements for the vesting of water mains or service pipes in water undertakers whose areas are wholly or mainly in Wales.’.—(Dan Rogerson.)

Clause 10, as amended, ordered to stand part of the Bill.