This clause gives Ministers powers to make regulations concerning the supply of water for public supply by a person other than an incumbent water company. It is designed to create a regulated market in which potential suppliers of water who are not incumbent water companies, as we have set out, are empowered to sell water to the public supply, building on resilience.

Our amendments make it clear that future agreements, for example variations of historic agreements, could also be excluded from the scope of the future regulations where it is considered appropriate. We believe this has always been possible, but we are making it clear in the Bill.