I beg to move amendment 146, in clause 39, page 77, line 15, at end insert—

‘( ) References in this section to provision made by or under this Part include references to provision made under section 52 or 53 in connection with this Part.’.

Amendment 146 modifies clause 39 to allow Ofwat to make changes to the appointment or licence conditions of the incumbent water companies and licensees as a consequence of Ministers making an order under clauses 52 or 53. That helps us to deliver our commitment to introduce retail reforms in April 2017 and to delay upstream reforms until after 2019.

The current power to make necessary or expedient changes to appointment or licence conditions under clause 39 only extends to reforms covered in part 1 of the Bill. Clauses 52 and 53 provide powers to make consequential and transitional provision by statutory instrument.

Amendment 146 agreed to.

Clause 39, as amended, ordered to stand part of the Bill.

Clause 40 ordered to stand part of the Bill.