With this it will be convenient to discuss the following:
New clause 2—Retail exit—
‘(1) The Secretary of State may by regulations make provision about the transfer of an undertaker’s assets and liabilities associated with its non-household retail business into a separate company.
(2) Regulations under this section are to be made by statutory instrument.
(3) Regulations under subsection (1) may, in particular, make provision for any such transfer to be subject to—
(a) approval by the Secretary of State;
(b) any such safeguards as may be specified in the regulations;
(c) the transferee company holding a licence containing a retail authorisation pursuant to section 17A of the Water Industry Act 1991;
(d) the provision of any information or other such assistance from the relevant undertaker as may be required by the Secretary of State for the purposes of approving the transfer.’.
New clause 11—Duties of undertakers to furnish the Secretary of State with information: annual review—
‘(1) Section 202 of the Water Industry Act 1991 (duties to undertakers to furnish the Secretary of State with information) is amended as follows.
(2) After subsection (1A) there is inserted—
“(1B) Any company with a duty under subsections (1) and (1A) must furnish the Secretary of State and the Authority with an annual review which provides information about—
(a) their performance;
(b) the total amount of investment;
(c) their taxation structure;
(d) their corporate structure; and
(e) the total amount of dividends paid to shareholders.
(1C) Information under subsection (1B) must be provided prior to the publication of the annual statement of the Secretary of State under section 2A.”.’.
New clause 12—Oversight of charges—
‘In section 2 of the Water Industry Act 1991 (general duties with respect of the water industry), after subsection (2C) there is inserted—
“(2CA) For the purposes of subsection (2A)(a) above the Secretary of State or, as the case may be, the Authority shall have regard to the rates of charges to—
(a) household premises; and
(b) non-household premises.”.’.
New clause 14—Privatisation of water supply: review—
‘(1) Chapter 1 of this Act shall not come into force until the Secretary of State has laid before Parliament a report on the
performance of the water companies since the privatisation of the arrangements for water supply came into force under the Water Act 1989, the Water Industry Act 1991 and the Water Consolidation (Consequential Provisions) Act 1991.
(2) A report under subsection (1) must in particular review—
(a) the cost of water to the consumer,
(b) the number of disconnections of water supply,
(c) the purity of the water supplied and the number and consequences of water pollution incidences attributable to the operation of the water companies,
(d) the incidences of leakages, low pressure and disruptions to water supply,
(e) the levels of investment in the water supply infrastructure by the water companies,
(f) the profits made and dividends paid to shareholders by the water companies,
(g) the levels of management remuneration of the water companies,
(h) the levels of taxation paid by the water companies, and
(i) the adherence of the water companies in their operations in the UK and internationally to the national legislation and international conventions and treaties on the protection of the environment, human rights and wages and employment conditions.’.
Government amendments 13 to 22 and 59.
Amendment 12, page 124, line 1, in clause 80, at end insert ‘(h) section [Retail exit].’.
Government new schedule 1—‘Orders under section 77: further provision.
Government amendments 23 to 28, 60, 29 to 46, 61 to 64, 47 to 50, 52, 53, 65 to 87 and 54.