Explanatory note

These Regulations set up a right of appeal to the Competition and Markets Authority (the “CMA”) against a decision (an “Authority decision”) by the Water Services Regulation Authority (the “Authority”) to revise or not to revise a code designated for the purposes of section 207A(2) of the Water Industry Act 1991 (c. 56) (the “Act”). The relevant codes are designated in regulation 3 and are listed in a table in the Schedule.

Regulation 4(2) provides a list of persons that can appeal an Authority decision, and regulation 4(3) provides that such a person requires the permission of the CMA to bring an appeal. Regulation 5 sets out the decisions against which a right of appeal is excluded. Regulation 6 sets out the procedure for applications for permission to appeal.

Regulation 7 allows the CMA to direct that a person be added to an appeal as an intervener, provided that they would have been entitled, at the time of the application, to make their own application to bring an appeal against the Authority decision.

Regulation 8 allows the CMA on application to suspend the Authority decision appealed against pending determination of the appeal.

Regulation 9 provides the time limit for the making of representations and observations by the Authority to the CMA about the Authority decision appealed against.

Regulation 10 makes provision in relation to the composition and decision making process of any CMA Group established to determine an appeal.

Regulation 11 provides a timetable for the determination of an appeal.

For the purposes of determining an appeal, the CMA may require by notice the production of documents (regulation 14), an oral hearing to be held (regulation 15) or written statements to be produced (regulation 16). Regulation 17 sets out the penalties for failing to comply with such a notice, making false statements, providing false information or wilfully altering, suppressing or destroying documents which are required to be produced.

Regulation 18 provides for the determination of an appeal, including the grounds on which the CMA may allow the appeal (see regulation 18(2)).

Regulation 19 permits the CMA to make orders for costs in connection with an appeal.

Regulation 20 sets out two consequential amendments to Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (c. 24) to allow for the appointment of CMA panel members for the purposes of these Regulations.

Impact assessments were prepared in respect of the Water Act 2014 and copies can be obtained from the Water Services Team, the Department for Environment, Food and Rural Affairs, Area 3D, Nobel House, 17 Smith Square, London SW1P 3JR. These impact assessments are published alongside the Water Act 2014 at www.legislation.gov.uk.