Section 12 Determinations under conditions of appointment.

England and Wales

(1)

Without prejudice to the generality of paragraph (a) of section 11(1) above, conditions included in an appointment by virtue of that paragraph may—

(a)

require the appointed company to comply with any direction given by F1the Authority as to such matters as are specified in the appointment or are of a description so specified; and

(b)

require the appointed company, except in so far as the Authority consents to the company’s doing or not doing them, not to do or to do such things as are specified in the appointment or are of a description so specified.

(2)

Without prejudice as aforesaid, such conditions may provide for the reference to and determination by—

(a)

the Secretary of State or the Authority; or

(b)

on a reference by the Authority, the F2CMA,

of such questions arising under the appointment and of such other matters, including (in the case of references to F3the CMA ) disputes as to determinations by the Authority, as are specified in the appointment or are of a description so specified.

(3)

Where any question or other matter falls to be determined by the F4CMA in pursuance of a provision contained in an appointment under this Chapter—

(a)

it shall be the duty of the Authority, on being required to do so by the company holding that appointment, to refer that question or matter to F5the CMA; and

(b)

it shall be the duty of the CMA to determine any question or other matter referred by virtue of paragraph (a) above in accordance with—

F6(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)

the principles which apply, by virtue of Part I of this Act, in relation to determinations under this Chapter by the Authority.

F7(3A)

For the purposes of subsection (3) above, where—

(a)

the question or matter referred to the F8CMA concerns the review of a price control imposed on the company holding the appointment; and

(b)

the CMA is to decide to what extent it is reasonable to take into account in its determination costs incurred or borne by the company in connection with the reference,

the CMA shall also have regard to the extent to which, in its view, its determination is likely to support the company’s (rather than the Authority's) claims in relation to the question or matter referred to it.

(3B)

Subsections (4) and (5) of section 14, and F9sections 14A and 14B, below apply to references to the F10CMA under this section as they apply to references under section 14.

(3C)

A report of the CMA on a reference under this section—

(a)

shall be made to the Authority; and

(b)

shall include definite conclusions on the questions or other matters comprised in the reference, together with such an account of their reasons for those conclusions as, in the opinion of the CMA , is expedient for facilitating a proper understanding of those questions or other matters and of their conclusions,

and subsections (5) and (6) of section 15 below apply to such a report as they apply to a report on a reference under section 14.

F11(3D)

The functions of the CMA with respect to a reference under this section are to be carried out on behalf of the CMA by a group constituted for the purpose by the chair of the CMA under Schedule 4 to the Enterprise and Regulatory Reform Act 2013 (including functions relating to the making of modifications following a report on a reference, and functions under sections 109 to 115 of the Enterprise Act 2002, as applied by subsection (3B) read with section F1214B).

F13(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Words in Act substituted (1.4.2006) by virtue of Water Act 2003 (c. 37), ss. 36(2), 105(3); S.I. 2005/2714, art. 4(c)
F2: Words in s. 12(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(2)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F3: Word in s. 12(2) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(2)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F4: Word in s. 12(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(3)(a); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F5: Words in s. 12(3) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(3)(b); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F6: S. 12(3)(b)(i) repealed (1.10.2004) by Water Act 2003 (c. 37), ss. 54(3), 105(3), Sch. 9 Pt. 2; S.I. 2004/2528, art. 2(h)(u) (with art. 4, Sch.)
F7: S. 12(3A)-(3C) inserted (1.10.2004) by Water Act 2003 (c. 37), ss. 54(2), 105(3); S.I. 2004/2528, art. 2(h) (with art. 4, Sch.)
F8: Word in s. 12(3A) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(4); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F9: Words in s. 12(3B) substituted (14.7.2014) by Water Act 2014 (c. 21), s. 94(2)(s), Sch. 7 para. 8(a)
F10: Words in s. 12(3B)(3C) substituted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(5); S.I. 2014/416, art. 2(1)(d) (with Sch.); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F11: S. 12(3D) inserted (1.4.2014) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 6 para. 53(6); S.I. 2014/416, art. 2(1)(d) (with Sch.)
F12: Word in s. 12(3D) substituted (14.7.2014) by Water Act 2014 (c. 21), s. 94(2)(s), Sch. 7 para. 8(b)
F13: S. 12(4)(5) repealed (1.10.2004) by Water Act 2003 (c. 37), ss. 54(3), 105(3), Sch. 9 Pt. 2; S.I. 2004/2528, art. 2(h)(u) (with art. 4, Sch.)