# The Water Mergers (Modification of Enactments) (Amendment) Regulations 2024, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Water Mergers (Modification of Enactments) Regulations 2004 (S.I. 2004/3202) (“the 2004 Regulations”).
Part 3 of the Enterprise Act 2002 contains the main statutory scheme for the regulation of mergers. Sections 32 to 35 of, and Schedule 4ZA to, the Water Industry Act 1991 (c. 56) provide a separate scheme for the regulation of mergers between water or sewerage enterprises in England and Wales. Paragraph 1 of Schedule 4ZA provides that Part 3 of the Enterprise Act 2002 applies to water mergers with such modifications as may be prescribed by the Secretary of State. These modifications are set out in the 2004 Regulations.
The Digital Markets, Competition and Consumers Act 2024 (c. 13) (“DMCCA”) makes amendments to Part 3 of the Enterprise Act 2002. These include, for example, amendments to enable the Competition and Markets Authority (“CMA”) to fast-track a merger to an in-depth Phase 2 investigation if it receives a request from the parties involved in a merger to do so (section 128 of, and Schedule 5 to, the DMCCA). It also amends Part 3 of the Enterprise Act 2002 to create new turnover based civil penalties for breaches of investigative measures (section 143(1)(b) of, and Part 2 of Schedule 10 to, the DMCCA) and for breaches of remedies in relation to mergers, i.e., breaches of an undertaking accepted or order made under that Part (section 143(2)(b) of, and Part 2 of Schedule 11 to, the DMCCA).
These Regulations amend the modifications made by the 2004 Regulations to Part 3 of the Enterprise Act 2002 to reflect and, where appropriate, vary the amendments made by the DMCCA in their application to water mergers.
Regulations 3 and 5 to 9 make amendments to ensure that provisions in Part 3 of the Enterprise Act 2002 relating to the new fast-track process do not apply to water mergers.
Regulation 4 reflects the repeal by the DMCCA of section 32 of the Enterprise Act 2002 (in connection with changes to the definition of “working day” for the purposes of Part 3 of that Act).
Regulation 10 ensures that the new provision in Part 3 of the Enterprise Act 2002 relating to the territorial extent of information notices under that Part and the new civil penalties powers apply to water mergers.
Regulation 11 makes transitional provision ensuring that the modification inserted into the 2004 Regulations by regulation 10, concerning the imposition of civil penalties for the breach of investigative measures, does not apply in relation to information supplied in response to information notices given under section 109 of the Enterprise Act 2002 before 1st January 2025 or to a non-compulsory request for information made by the CMA before that date.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary sector or community bodies is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2024/1234/note (the official version)
Page: https://openlegislation.uk/water-mergers-modification-of-enactments-amendment-regulations-2024/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.