New Water Act receives Royal Assent

The Water Act received Royal Assent on 20 November 2003. The Act is the product of a government initiative of 1997 aimed at promoting sustainable use of water resources. The Act will come into force by means of a commencement order. The government has given an assurance that the new structures set up by the Act will not come into effect until 2005 once OFWAT has completed its price review for 2005-2010.

The new Act has three main parts:

Part 1: deals with abstraction of water and the

impounding regime (relates to impounding water by

dams, weirs etc);

Part 2: sets up new regulatory arrangements;

Part 3: amends certain aspects of existing legislation

(Water Industry Act 1991, Water Resources Act

1991, Reservoirs Act 1975, Environmental Protection

Act 1990 and Environment Act 1995).

Important changes to note include:

* Revising the licensing regime for large scale water
abstraction;

* Introducing a duty to agree drought and water

resource management plans with the Secretary of

State (or the National Assembly) and to make them

publicly available;

* Introducing a duty to further water conservation;

* Creating of the Water Services Regulation Authority,

which will have a duty to protect the interests of

consumers. The Authority will replace the Director

General of Water Services;

* Establishing an independent Consumer Council for Water replacing WaterVoice;

* Measures aimed at increasing competition for

example by introducing a licensing system for new

entrants

* A new power to fine water undertakers or suppliers

up to 10% of turnover for breaches of licence

conditions, standards of performance or other

obligations;

* A new licensing regime for companies other than an

area's incumbent water undertaker who wish to supply

water. This regimes includes criminal penalties for

introducing water into a supply system or using a water

undertaker's supply network without prior

authorization;

* Introducing a duty on the Secretary of State to take

appropriate steps to encourage water conservation and

to report to Parliament on progress every three years.

If you have any queries please contact Richard Temple at [email protected]