Schedule 4, Part 1, paragraph 3

The following are utility activities— the provision or operation of a fixed network for the provision of a service to the public in connection with the production, transport or distribution of drinking water; the supply of drinking water to such a network. The following are utility activities to the extent that they are carried out by a person who also carries out activities within sub-paragraph (1)— any activity connected with a hydraulic engineering project, irrigation or land drainage in circumstances where the condition in sub-paragraph (3) is met; any activity connected with the disposal or treatment of sewage. The condition is that a person carrying out the activity would reasonably expect that more than 20 per cent of the water made available by the project, irrigation or land drainage is to be supplied as drinking water to a network within sub-paragraph (1)(a). The supply of drinking water as mentioned in sub-paragraph (1)(b) is not a utility activity if— the person supplying it (the “operator”) is a private utility or a public undertaking, the operator produces drinking water because it needs drinking water to carry out an activity that is not a specified activity, the supply consists only of drinking water that was produced by the operator as mentioned in paragraph (b) but which it has not consumed, and the amount of drinking water supplied represents not more than 30 per cent of the amount of drinking water produced by the operator. An appropriate authority may by regulations make provision about how to calculate an amount referred to in sub-paragraph (4). The regulations may, in particular, make provision for such an amount to be calculated by reference to— an average amount for a period specified in the regulations; another reasonable method so specified.

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Source: legislation.gov.uk · retrieved 2026-09-04