Water Services
The Water and Sewage Services (NI) Order 2006 provided for the transfer of water and sewage services, as of 1 April 2007, to a government-owned company. This company was appointed as the initial water undertaker and sewage service provider for Northern Ireland.
It is intended to be run on a commercial basis and regulated as a public utility. It was intended to introduce charging for domestic water and sewage services in addition to commercial water and sewage services.
The legislation provided for regulatory controls in relation to the obligation of the new company to provide water, water standards, effluents, and sewage disposal charges, as well as levels of service.
The existing energy regulator is expanded to include functions to regulate utilities generally. The body is to be known as the Northern Ireland Authority for Utility Regulation. The Authority is to protect consumer interests while facilitating effective competition and ensuring that the undertakers operate properly in all areas.
The regulatory authority must have regard to the interests of customers and consumers, including low-income groups, rural dwellers, and the disabled. It must carry out its duties to contribute to sustainable development and encourage the undertakers to maximize efficiency and economy without undue discrimination in charges. Regulatory bodies must cooperate with the Department of the Environment to ensure a consistent approach to regulation, water resources, water pollution, and cooperation arrangements are to be formalized.
The Department of Environment appoints water and sewage undertakers. Their terms of appointment are provided in the licence. There must also be a water and sewage provider for all parts of Northern Ireland.
The terms of appointment may be modified by reference to the Authority, regulator, or Competition Commission. Licences may be revoked, varied, and new undertakers may be appointed, etc.
There are provisions to ensure the undertakers comply with the terms of their employment. Enforcement orders may require them to do or refrain from doing anything required under the legislation.
Financial penalties may be imposed where it has been determined that they have contravened conditions of appointments or failed to meet standards of performance or contravened statutory duty. The penalty is not to exceed 10% of the undertaker’s turnover. There are provisions for due process in the imposition of penalties.
There are special provisions to protect against the insolvency of the undertakers. A special administration order procedure exists, which is the exclusive method of deliberate insolvency issue. During the special administration order period, its affairs are managed by a person appointed by the High Court.
The role of the General Consumer Council for Northern Ireland is extended, and it is conferred interest in consumers in relation to water and sewage service. The Council was established in 1984 and has similar functions in relation to other utilities. The Council is to have regard to the interests of certain groups in the achievement of sustainable development.
The Council is obliged to obtain information about consumer matters and views. It may make proposals on consumer matters and publish information and advice to consumers.
The Council may direct the authority and undertaker to provide information. Where a complaint is made to the Council, the Council must investigate it unless it is frivolous or might be better dealt with using procedures under the legislation or cannot be resolved by the undertaker. It may pursue a complaint on behalf of a complainant and report to the Department or the Authority. The Council is to publish statistical information regarding complaints.
The Authority has a duty to review the performance of the undertaker. The Department may give directions to the Authority in relation to the prioritization of its duty. The Authority must give reasons for its decisions where it determines disputes under the legislation. Undertakers must make annual statements to the Authority about performance bonus awards to directors of the undertaker.
The undertaker must establish a complaints procedure after consultation with the Consumer Council. This must be publicized. The Authority may direct that it be modified or reviewed.
It is a general duty of the undertaker to maintain an efficient and economic system of water supply. This obligation is enforceable by the Department or the Authority, and the Department delegates the function. The Department may make regulations setting out the details of the duty. The Authority is to apply to the Department in relation to the contents of regulations, having consulted the undertaker and carried out consumer research.
Regulations may provide for tentative compensation where there is a failure to meet prescribed standards. The regulation is to provide information on performance standards to the Authority and customers. It must produce water resource management and drought plans setting out how it proposes to deal with these issues.
Undertakers have a duty to provide a water main sufficient for domestic services when requested to do so. They may make agreements with persons to provide their own water mains and service pipes, to adopt the same so that they are owned and maintained by the undertaker. Undertakers have a duty to connect premises to the water supply system, including carrying out ancillary work of laying pipes and making connections when requested to do so.
Where the undertaker agrees to adopt pipes or mains, there may be agreements for the connection of pipes and mains to the water supply. However, only the undertaker can make a connection to the water supply system.
Undertakers have obligations to supply customers, maintain connection with the water mains, and maintain standards of pressure and consistency. The duty implies that this must be sufficient for domestic purposes, which encompass drinking, washing, cooking, central heating, and sanitary purposes. The duty to maintain pressure must mean that it must reach the highest storey of every building, subject to certain height restrictions and exceptions.
There are slightly different applications applicable to unknown domestic supply. The undertaker must provide a supply but may decline to do so if it will involve unreasonable expenditure for the undertaking or put at risk its ability to meet existing and probable supply commitments. Terms of supply are to be agreed between the person making the request and the undertaker.
The provision of a water main with the making of a connection to supply water and ancillary work required for adoption are at the expense of the person making that request. The undertaker may require financial security for those requesting works arising from an agreement to adopt.
The undertaker may impose conditions where it agrees to connect or adopt new pipes to its systems. This may include conditions regarding the provision of information to the undertaker, standards of plumbing, water pressure maintenance, requirements for separate water service pipes. The undertaker may require a water meter in newly connected premises.
There are provisions requiring the undertaker to complete works within certain time frames. It may be liable for delay in connection, disputes regarding payments, security, details of connections, timelines for adoption, and terms of agreement may be referred to the Authority for resolution.
The undertaker may cut off or reduce supplies or carry out necessary works, provided it gives reasonable notice other than in emergencies. If a disconnection is to last more than 24 hours, an alternative emergency supply must be made available. The District Council must be informed in the case of disconnection for more than 48 hours.
Non-domestic supplies may be disconnected for non-payment after following specified procedures. This does not apply to domestic premises or residential homes for the elderly, hospitals, medical facilities, schools, educational establishments, child care facilities, prisons, emergency services premises. Consumers may request that water may be connected in an emergency to avoid misuse or waste or contamination or pending remedial works.