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Pipelaying Powers on Private Land
This information note explains the legal responsibilities and powers of water and sewerage companies when laying pipes on private land and the Water Services Regulation Authority's (Ofwat) role in dealing with complaints.
What powers do companies have to lay pipes?
Section 159 of the Water Industry Act 1991 gives water and sewerage companies powers to enter private land to lay a pipe; to inspect, maintain, adjust, repair or alter any pipe, and to carry out incidental works. This is subject to reasonable notice and the payment of compensation.
How much notice must companies give of their intention to lay pipes?
When laying a new pipe a company should normally give at least three months' notice to the owner and occupier of the land. However, if the pipe is required in response to a requisition (formal request) this period may be reduced to at least twenty-one days. Forty-two days' notice should be given for altering an existing pipe and seven days for minor maintenance or repairs. These periods can, however, be reduced by agreement.
Is compensation payable?
Compensation is payable, under schedule 12 to the Water Industry Act 1991, for any depreciation to the value of the land caused by the presence of the pipe, together with an allowance for disturbance and actual losses. If the landowner or his agent asks the company in writing, they will pay an advance of 90% of its assessment of the landowner's loss within three months of receipt of a quantified claim and evidence of entitlement. Interest may be payable on the claim. Disputes about the level of compensation are a matter for the Lands Tribunal. Ofwat cannot determine this.
What are the rules that govern the company's behaviour?
All companies have a Code of Practice for pipelaying in private land. This must be given to the owner/occupier at, or before, the time the formal notice to enter and do work is issued.
The Code covers subjects such as: - consultation and notice of works;
- location of pipes and equipment;
- arrangements for drawing up a pre-works schedule recording the condition of the land;
- reinstatement arrangements;
- supervision arrangements; and
- agents' fees and compensation.
Can someone act on my behalf?
The landowner/occupier may employ an agent to represent his interests. The company will reimburse the reasonable costs of necessary professional advice. The maximum payable will be based on a standard scale of professional fees, known as Ryde's scale.
What is Ofwat's role?
Section 181 of the Water Industry Act 1991 places a duty on Ofwat to investigate complaints about pipelaying on private land. Complaints must, in Ofwat's view, be of substance and normally be made within 12 months of the event to which the complaint refers. Ofwat is not required to investigate under section 181 if the complaint has not been brought to the company's attention or it has not been given the reasonable opportunity to deal with it.
What criteria does Ofwat apply to complaints about pipelaying?
The legislation states Ofwat must be satisfied that the company has:
a) failed adequately to consult the complainant before, or in the course of, exercising the pipelaying powers, about the manner in which the powers are to be exercised; or
b) by acting unreasonably in exercising those powers, has caused the complainant to sustain loss or damage, or be subject to inconvenience.
If, after considering what the parties tell it, Ofwat is satisfied that the complaint meets the criteria set out above it may make an award against the company. Awards are subject to a limit of £5,000 for each of (a) and (b) above.
Ofwat may not include in its award any loss, damage or inconvenience for which compensation is recoverable under schedule 12 to the Act unless it fails to reflect the unreasonableness of what the company did. The award is intended to cover unnecessary and avoidable inconvenience and associated loss and damage.
Factors Ofwat will examine include: - whether the company consulted and provided appropriate information throughout;
- the adequacy of communications with the landowner; whether the contract was performed without unnecessary delays. (If not, was there a good reason?);
- whether there was satisfactory reinstatement, without unnecessary delay and argument;
- did the company make prompt and realistic offers of compensation in response to claims, and advance payments if requested;
- whether the company handled negotiations in a constructive manner; and
- whether the company avoided unnecessary loss, damage and inconvenience.
Ofwat is required to take alleged breaches of the company's code of practice on pipelaying into account. Failure to comply with the code does not in itself, however, entitle a complainant to an award under section 181.
How to make a complaint?
Complaints should be made in writing to:
Ofwat
Centre City Tower
7 Hill Street
Birmingham
B5 4UA
A full explanation of the complaint, together with copies of relevant correspondence and all supporting evidence, should be provided.
Where appropriate Ofwat will suggest action to enable the company and the complainant to resolve their differences. A site visit may be needed.
If the differences cannot be resolved the company will be asked to respond, in detail, to the complaint. Once Ofwat is satisfied that it has sufficient information it will prepare a draft report and invite each party to comment on the factual part of that report. Ofwat will take account of these comments before reaching its decision and will, where appropriate, make an award.
For further information
Contact the Ofwat library telephone: 0121 625 1361;
E-mail address: enquiries@ofwat.gsi.gov.uk
Website: http://www.ofwat.gov.uk
July 1995
(Revised October 2007)
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