20.Section 3 amends section 142 of the 1991 Act, so that charges for water and sewerage services for dwellings must be fixed on the basis set out in water companies’ charges schemes rather than by agreement. An exception is made to allow agreements which have been entered into before this provision is brought into force to continue. Section 4 amends section 143 of the 1991 Act, so that charges schemes must be approved by the Director General of Water Services (the Director) each year. The Director’s power to approve charges schemes under section 143 (and the Secretary of State’s power to make regulations under section 143A as inserted by section 5 of this Act) cannot be used to limit the total revenues available to water and sewerage undertakers from their charges schemes. Section 143 as amended also provides for the Secretary of State to give the Director guidance to take into account when approving schemes, and for the guidance to be published.
Commentary on Sections Sections 3 & 4: Charges schemes and agreements