WATER SUPPLY AND SEWERAGE SERVICES REGULATIONS

WATER SUPPLY AND SEWERAGE SERVICES

SUBSIDIARY LEGISLATION 545.14

WATER SUPPLY AND SEWERAGE SERVICES

REGULATIONS

1st January, 2005;

1st September, 2009

LEGAL NOTICE 525 of 2004, as amended by Legal Notices 426 of 2007,

337 of 2009, 31 and 38 of 2010, and 184 of 2012; and Act XXV of 2015.

(1) The title of these regulations is the Water Supply and

Sewerage Services Regulations.

(2) The scope of these regulations is to regulate the licensing of

water supply and sewerage services in Malta. These regulations are

being made for the safeguarding of the public interest and public

safety. Any requirements and, or conditions contained therein,

including those relating to authorisations and licences, are being

made for overriding reasons relating to public interest.

[Regulation 7(2)]

Application and Licence Fees to Water Tanker Operators

Licence fees and charges for e-tracking to water tankers

Annual licence fee

€200 per water tanker or trailer licensed

to transport water

Annual fee for e-tracking €425 per water tanker or trailer licensed

to transport water

O n e t i m e f e e f o r €800 per water tanker or trailer licensed

installation of water level to transport water

sensor to water tanker or

trailer

In these regulations, unless the context otherwise requires

"the Act" means the Regulator for Energy and Water Services

Act;

"authorisation" means any authorisation or licence granted under

these regulations and in relation to services and service providers

it means a permit, licence, appointment, concession or any formal

decision concerning access to a service activity or the exercise

thereof;

"the Regulator"’ means the Regulator for Energy and Water

Services as defined in the Act;

"customer" means and includes any natural or legal person who

is supplied with water from a water supplier and, or who receives

sewerage services from a sewerage service operator, and wherever

it occurs in these regulations, it shall also include "final customer";

"domestic sewage" means sewage and, or wastewater from

residential settlements and services which originates predominantly

from the human metabolism and from household activities;

"establishment" means the actual pursuit of an economic activity

by a service provider for an indefinite period and through stable

infrastructure from where the business of providing services is

actually carried out;

"final customer" means any natural or legal person who is

supplied with water from a water supplier for his own use and, or

who receives sewerage services from a sewerage services operator

for his own use;

"industrial sewage" means any sewage and, or wastewater which

is discharged from premises used for the carrying out of any trade,

practice, activity or industry, other than domestic sewage and run-

off rain water;

WATER SUPPLY AND SEWERAGE SERVICES

"internal sewage collection system of any premises" means the

pipework, fittings and appliances which are installed within any

premises and up to the sewage collection system but only if they

are not the responsibility of the sewerage services operator in its

capacity as a sewerage services operator;

"internal water distribution system of any premises" means the

pipework, fittings and appliances which are installed within any

premises and up to the distribution network but only if they are not

the responsibility of the water supplier in its capacity as a water

supplier;

"licensee" means the holder of the licence issued by the

Regulator under these regulations, or an authorised provider who is

authorised by the Regulator in terms of these regulations to carry

out the activity regarding the collection, purification and

distribution of water, and also regarding the disposal and treatment

of waste water, or a service provider who is authorised to operate

under any law in force in a Member State of the European Union or

a state which is a participant to the European Economic Area;

"Member State" means a member state of the European Union;

"the Minister" means the Minister responsible for Resources;

"non-potable water supplier" means a water supplier whose

scope of operations is limited to water that is not potable water;

"overriding reasons relating to public interest" means reasons

recognised as such in case law of the European Courts of Justice

and which reasons present a justification for the issue of an

authorisation and, or the issue of a condition thereto and, or any

other policy decision taken in terms of such authorisation, when

such authorisation, and, or condition and, or policy decision

thereto could not have been issued or taken under normal

circumstances but for such overriding reasons relating to public

interest which include any of the following grounds

(a) public policy, public security, public safety and public

health; provided that these

grounds shall be

interpreted within the meaning of Article 46 and

Article 55 of the Treaty;

(b) the maintenance of order in society;

(c) social policy objectives;

(d) the protection of the recipients of services;

(e) consumer protection;

(f) the prevention of fraud;

(g) the prevention of unfair competition; and

(h) the protection of the environment;

"potable water" means all water

(a) either in its original state or after treatment is intended

for drinking, cooking, food preparation or other

domestic purposes, regardless of its origin and whether

it is supplied from a distribution network, pipeline or a

tanker;

WATER SUPPLY AND SEWERAGE SERVICES

(b) used in food-production undertaking for the

manufacture, processing, preservation or marketing of

products or substances intended for human

consumption;

"private sewage collection system" means a sewage collection

system which is not a public sewage collection system;

"private water distribution network" means a water distribution

network which is not a public water distribution network;

"production of water" means the process of abstraction of water

and, or its treatment at a water treatment plant;

"public sewage collection system" means a sewage collection

system which is vested in or belongs to the Government or any

Government owned company or parastatal corporation by whatever

title and is operated by the Government, a Government owned

company or a parastatal corporation;

"public water distribution network" means a water distribution

network which is vested in or belongs to the Government or any

Government owned company or parastatal corporation by whatever

title and is operated by the Government, a Government owned

company or a parastatal corporation;

"recipient" means any natural person who is a national of a

Member State, who benefits from rights conferred upon him by

community acts or any legal person established in a Member State,

who for professional or non-professional purposes, uses or wishes

to use a service against non-economic considerations;

"seawater" means water which has an electrical conductivity of

more than 50,000 μS/cm;

"service" means any self-employed activity performed for an

economic consideration;

"service provider" means any natural person who is a national of

a Member State, or any legal person established in a Member

State, who offers or provides a service;

"sewage" means domestic sewage and, or wastewater or the

mixture of domestic sewage and, or wastewater with industrial

sewage and, or wastewater and, or run-off rain water;

"sewage collection system" means a system of sewers, conduits,

pipes, manholes, pumps and any other facility used for the

collection, transfer, treatment and disposal of sewage from any

premises or establishment, but excludes the internal sewage

collection system of any premises;

"sewage collection tanker" means any vehicle, trailer or semi-

trailer which has a capacity of transporting a volume of sewage of

not less than three cubic meters;

"sewage treatment plant" means any structure, facility, device,

process or combination thereof used for the purpose of treating or

stabilizing sewage and, or wastewater or industrial sewage and, or

wastewater and disposing and, or reuse of the effluent;

"sewerage services operator" means any person licensed or

WATER SUPPLY AND SEWERAGE SERVICES

authorised by these Regulations to provide sewerage services to

any customer;

"sewerage services" means the carrying out of all or any of the

activities regarding collection of sewage, treatment, transfer and, or

disposal of waste water and the transfer and, or disposal and, or

supply and, or retail of effluent, whether or not such activities are

carried out against a fee, charge or any other form of remuneration,

howsoever it may be described;

"supply of water" means and includes the carrying out of all or

any of the activities regarding treatment, transfer, distribution,

supply and, or retail of water other than bottled water, whether or

not such activities are carried against a fee, charge, or any other

form of remuneration, howsoever it may be described, but does not

include water abstraction;

"the Treaty" means the Treaty establishing the European

Community;

"water distribution network" means a system or network of

conduits, pipes, pumps, wells, storage tanks, reservoirs, or other

facilities used for the collection, storage, transfer and distribution

of water but excludes the internal water distribution system of any

premises;

"water tanker" means any vehicle, trailer or semi-trailer which

has a capacity of transporting a volume of water of not less than

three cubic meters;

"water treatment plant" means a facility or that portion of the

water supply system that alters either the physical, chemical, or

bacteriological quality of the water and that is used to render the

water potable;

"water supplier" means any person licensed or authorised by

these regulations to supply water other than bottled water.

(1) There shall be the following categories with regards to

water suppliers and sewerage services operators

(a) water suppliers who

(i) supply water through

the

public

water

distribution network;

(ii) * supply water to a customer through a single

pipeline or a private water distribution network;

(iii) supply water to a customer by water tankers;

(iv)* supply water to a customer by any other means;

(v) supply of water for own use by water tankers;

(b) sewerage services operators who

(i) provide sewerage services using the public

sewage collection system;

(ii)* provide sewerage services to a customer through

a single pipeline or a private sewage collection

system;

*Not yet in force.

WATER SUPPLY AND SEWERAGE SERVICES

(iii) * provide sewerage services to a customer by

tankers;

(iv)* provide sewerage services to a customer by any

other means;

(v) carrying out sewerage services for own use by a

sewage collection tanker;

(2) This regulation shall apply to any person providing or

offering a service, or operating a system, or carrying out a service

activity or the exercise thereof in terms of these regulations

whether or not such service, system or service activity or the

exercise thereof are carried out against a fee, charge or any other

form of remuneration, howsoever it may be described.

(1) With respect to water suppliers, the Regulator may

identify any one or more of the following functions as necessary

requirements for the supplier to support him in executing the

regulated activities

(a) conservation, augmentation and operation of water

resources and sources of water supply;

(b) development, maintenance and promotion of safe and

efficient production and distribution systems in order

to satisfy, as economically as possible, all reasonable

demands for potable water;

(c) management and operation of undertakings,

installations and property for the sole purposes of

potable water production, supply and, or distribution;

(d) promotion of reasonable use of potable water and

encouragement of conservation and appropriate re-use

of water resources

Provided that such support functions shall be carried out

only with the prior approval of the Regulator and in accordance

with the directions specified by the Regulator.

(2) With respect to sewerage services operators, the Regulator

may identify any of the following functions as a necessary

requirement for the operator to support him in executing the

regulated activities

(a) improvement, extension, cleansing and maintenance of

sewage collection systems;

(b) operation of sewage collection systems and such

further provisions as are necessary from time to time

for effectively dealing with the contents of these

systems by means of sewage treatment and disposal

works or otherwise;

(c) management and operation of undertakings,

installations and property for the sole purposes of

sewage collection, treatment, storage, disposal and

reuse;

*Not yet in force.

WATER SUPPLY AND SEWERAGE SERVICES

(d) promotion of reasonable appropriate reuse of water

resources and any other by-products including sludge;

(e) administering and issuing consents to connect to the

sewage collection system

Provided that such support functions shall be carried out

only with the prior approval of the Regulator and in accordance

with the directions specified by the Regulator.

(3) Nothing contained in this regulation or in a licence issued

under these regulations shall be interpreted as exempting a water

supplier or a sewerage services operator from requiring any other

licence as required in any other regulations or legislation.

Any water supplier or sewerage services operator who is

p r o v i d i n g o r offe r i n g a n y s e r v i c e o r op e r a t i n g a n y s y s t e m

mentioned in these regulations, and requiring a licence under these

regulations, shall apply in writing to the Regulator within three

months of the coming into force of these regulations.

(1) The provision of the services referred to in regulation 3

shall require a general authorisation or an individual licence issued

in terms of these regulations or as provided by the Act.

(2) Any person who wishes to provide any service requiring a

licence under these regulations shall submit an application in

writing to the Regulator in such form and manner as the Regulator

may prescribe or as provided by the Act.

(3) The Regulator shall establish its procedure for determining

an application for a water supply or sewerage service licence

Provided that such procedures shall be in accordance with

the provisions of the Act.

(4) Licences shall be issued by the Regulator in respect of the

provision of the services referred to in these regulations and shall

include the terms and conditions for the provision of such services

Provided that such licenses shall only be required, unless

otherwise provided for, in terms of the Act

Provided further that the conditions for the granting of an

authorisation for a new establishment shall not duplicate

requirements and controls which are equivalent or essentially

comparable, as regards the purpose to which the service provider is

already subject in another Member State or in Malta.

(5) A licence issued by the Regulator shall be in writing and,

unless revoked, cancelled or suspended in accordance with any

condition therein contained, it shall continue to be in force for such

period as may be specified in or determined by or under the licence.

(6) Nothing in these regulations shall prohibit the Regulator

from issuing a single licence incorporating more than one of the

licences.

(7) The validity period of the licence shall be determined by

the Regulator

Provided that such duration shall not be inconsistent with

WATER SUPPLY AND SEWERAGE SERVICES

or contrary to the provisions of the Act.

(8) The Minister may, if he deems it to be so necessary, direct

the Regulator to limit the number of licences that may be issued for

services regulated by these regulations

Provided that such limitation shall be justified by means of

overriding reasons relating to public interest and in accordance

with the provisions of the Act and of the Services (Internal

Market) Act.

(1) A non-refundable application fee of fifty-eight euro

and twenty-three cents (€58.23) shall be paid to the Regulator with

the licence application

Provided that the non-refundable application fee shall be

two hundred and thirty-two euro and ninety-four cents (€232.94)

for the following services

(a) water suppliers intending to supply a volume of water

greater than 10m 3 /day and supplying water through a

distribution network;

(b) sewerage services operators who intend to collect a

volume of sewage greater than 10m 3 /day and either

collect sewage through a collection system or operate

a sewage treatment plant.

(2) The licence fees and the charges and fees for e-tracking of

water tankers shall be as established in terms of the Schedule.

(3) The criteria established for the issue of any authorisation

under these regulations shall be non-discriminatory, proportionate,

clear and unambiguous, objective, made public in advance,

transparent and accessible.

(1) The Regulator has the power, through the licence, to

establish such conditions as the Regulator considers requisite or

expedient having regard to the functions established by the Act.

(2) Water suppliers or sewerage services operators falling

under any one category specified in regulation 3(1) shall be subject

to similar conditions, while different conditions may be established

for different categories specified in regulation 3(1).

(3) The Regulator may, however, distinguish in its licence

conditions between

(a) water suppliers and non-potable water suppliers;

(b) water suppliers based on the volume of water supplied;

(c) sewerage services operators based on the volume of

sewage collected and, or treated and, or disposed of.

(4) The Regulator may include conditions in the licence,

consistent with any direction of a policy nature that the Minister

may give, and regarding, but not necessarily be limited to

(a) the grant and term of the licence including the

identification of support functions to be provided by

the water supplier or sewerage services operator, in

WATER SUPPLY AND SEWERAGE SERVICES

accordance with regulation 4;

(b)

suspension, variation and transfer conditions of the

licence;

(c)

licence fees to be paid by the water supplier or

sewerage services operator, to the Regulator;

(d)

compliance requirements to conditions, directions,

management letters, standards, guidelines, codes or

rules given by the Regulator and other laws;

(e)

charges and tariffs for the provision of the regulated

services;

(f)

the water suppliers’ or sewerage services operators’

service obligations including but not limited to

obligations to customers, development of emergency

response plans, asset management plans and security

plans;

(g)

the monitoring, recording, submission, reporting and

auditing of information to the Regulator;

(h)

the inspection, making copies and taking extracts from

books and records held by a water supplier or

sewerage services operator and the carrying out of

measurements and tests in relation to any premises,

assets or plant;

(i)

the assessment and auditing of operations and

compliance with licence conditions;

(j)

the regulation of subsidiary companies and, or

companies and, or co-operatives providing part of the

regulated services.

(5)

Any person granted a licence under these regulations shall

(a) comply with any direction given by the Regulator as to

such matters as are specified in the licence or are of a

description so specified;

(b) provide the services in accordance with such licence

conditions

Provided that the authorised provider shall inform the

Regulator of any changes relating to his service

activity which result in the conditions for his

authorisation no longer being met and the creation of

subsidiaries whose activities fall within the scope of

the authorisation and, or the authorisation scheme;

(c) do or not do such things as are specified in the licence

or are of a description so specified;

(d) comply with the decisions or directions issued by the

Regulator for the purposes of complying with any of

Malta’s international obligations.

WATER SUPPLY AND SEWERAGE SERVICES

(1) The Regulator may, at any time in the course of the

period for which the licence is valid, order its suspension,

revocation or cancellation where the Regulator is satisfied that

(a) the licensee has failed or is failing to abide by any

conditions of the licence, or by these regulations, or

(b) the licensee does not possess all other relevant permits

or licences that are issued by any other authority or

regulatory body, or

(c) the licensee is contravening any statutory or other

requirement imposed by any law, or

(d) the licensee fails to comply with any direction given

by the Regulator as to such matters as are specified in

the licence or are of a description so specified, or

(e) any information submitted in the application for a

licence or the application for renewal of a licence and

on which the licence has been issued or renewed, as

the case may be, is determined to be false, or

(f) the licensee fails to pay the licence fee as established

in regulation 13

Provided that in exercising the powers for suspension,

revocation or cancellation of licences the Regulator may take

account of the nature of the failure, or the fact that the licensee is

taking the appropriate steps, as it appears to the Regulator, to

comply with the conditions of the licence or any other fact that the

Regulator may deem relevant

Provided further that, any decision taken by the Regulator,

including refusal or withdrawal of an authorisation, shall be fully

reasoned and shall be open to challenge before the the

Administrative Review Tribunal established by article 5 of the

Administrative Justice Act

Provided also that, in case of failure by the Regulator to

inform the applicant regarding any decision taken concerning

access to a service activity or the exercise thereof, including

refusal or withdrawal of an authorisation, shall not mean in any

manner whatsoever, that the Regulator has tacitly granted such

authorisation and that the applicant has automatically been granted

access to a service activity, or the exercise thereof.

(2) No person may provide any of the services referred to in

regulation 3 where the Regulator has suspended the licence and

until such time that the suspension of the licence is lifted by the

Regulator.

(3) No person may provide any of the services referred to in

regulation 3 where the Regulator has revoked or cancelled the

licence and until such time that a new licence is issued by the

Regulator.

(4) Any person whose licence has been cancelled or revoked

may re-apply for a licence and such a new application shall be

subject to all the provisions established by these regulations.

WATER SUPPLY AND SEWERAGE SERVICES

(1) Subject to the following provisions of this regulation,

the Regulator may modify, amend, replace, add or delete any

licence condition as it considers requisite or expedient having

regard to the functions established by the Act.

(2) Before making modifications, the Regulator shall give

notice to the licensees

(a) stating that it proposes to make modifications to the

licence and setting out their effect;

(b) stating the reasons why the modifications are being

proposed;

(c) specifying the period (not being less than three months

from the date of publication of the notice) within

which representations or objections with respect to the

proposed modifications may be made,

and the Regulator shall be bound to consider any representations

and objections which are duly made and not withdrawn.

(3)

The notice referred to in subregulation (2) shall be

(a) brought to the attention of the Minister and the water

supplier or sewerage services operator;

(b) brought to public attention by the publication of a

notice in the Government Gazette.

(1) Where the Regulator is satisfied that -

(a) a water supplier or sewerage services operator is

contravening any condition of the licence, or,

(b) a water supplier or sewerage services operator is

contravening any requirement imposed by law, or,

(c) there is persistent failure by a water supplier or

sewerage services operator to meet the targets set by

the Regulator, or,

(d) any person is carrying out any activities or providing

any of the services referred to in these regulations

without being authorised or licensed to do so by the

Regulator,

the Regulator may take such measures in respect of such water

supplier, or sewerage services operator, or person, in accordance

with the manner the Regulator may deem most fit.

(2) The Regulator may issue enforcement orders making such

provisions as are requisite for the purpose of securing compliance

with conditions or requirements referred to in subregulation (1).

(3)

An enforcement order mentioned in subregulation (2) -

(a) shall require the water supplier, or sewerage services

operator, or the person to which the order relates

(according to the circumstances of the case) to do, or

not to do, such things as are specified in the order or

are of a description so specified;

(b) shall take effect at such time, being the earliest

WATER SUPPLY AND SEWERAGE SERVICES

practicable time, as is determined by or under the

order;

(c) shall be published in such manner as the Regulator

considers appropriate for the purpose of bringing the

matters to which it refers to the attention of persons

likely to be affected by the order;

(d) may be revoked at any time by the Regulator

Provided that in exercising the powers for the issue of an

enforcement order, the Regulator may take account the nature of

the failure, or the fact that the licensee is taking the appropriate

steps, as it appears to the Regulator, to comply with the licence

conditions or any other fact that the Regulator may deem relevant.

(1) The Minister may direct the Regulator, in the general

interest, to impose as a licence condition on any water supplier or

any sewerage services operator granted a licence to provide any

services under these regulations, a public service obligation to

supply any service, in any specified form, to any final customer or

specific groups of final customers, at specified prices.

(2) Any additional costs incurred as a result of these

obligations may be identified by the water supplier, or by the

sewerage services operator, and shall be verified by the Regulator.

(3) Additional costs referred to in subregulation (2) may be

recovered as specified by the Regulator, including through an

additional charge imposed on other water suppliers or other

sewerage services operators, as the case may be.

(1) The water supplier or sewerage services operator shall

pay licence fees to the Regulator, including fees to be paid on the

grant of the licence and licence renewal fees on an annual basis.

(2) The amount of the licence fee shall be in accordance with

mechanisms established by the Regulator and approved by the

Minister.

(3) The Regulator shall publish the mechanisms for

determining licence fees in the Gazette prior to their introduction.

Notwithstanding the above and for the first year from the

coming into force of these regulations, the Regulator may establish

such licence fees and such licences fees shall be subject to the

approval of the Minister.

(1) In the case of water supplied through a public water

distribution network or in the case of provision of sewerage

services using the public sewage collection system, any water

supplier or sewerage services operator shall provide the services in

accordance with tariffs and subsidies as approved by the Regulator,

or if not so established or approved, the water supplier or sewerage

services operator shall provide the services in accordance with the

tariffs and subsidies in force prior to the Act and saved under

article 36 of the Act

Provided that the water supplier or sewerage services

operator shall keep accounts for services where, in the opinion of

WATER SUPPLY AND SEWERAGE SERVICES

the Regulator, no effective market competition exists separately

from accounts for other activities, in any form or consolidation as

directed by the Regulator, with the objective of avoiding cross-

subsidisation or distortion of competition

Provided further that the water supplier or sewerage

services operator shall identify all activities carried out by him and

his subsidiaries and propose a classification of activities for

approval by the Regulator within three months of these regulations

coming into force.

(2) The Regulator may impose tariff structures or mechanisms

if necessary to reach objectives of national interest such as

consumer protection, fair competition and securing public service

obligations taking into account any directions that the Minister may

give.

Save the provisions of article 26 of the Act, any water

supplier or sewerage services operator or any person providing any

services or operating any systems mentioned in these regulations,

who contravenes or fails to comply with any of these Regulations

shall be guilty of an offence against the provisions of these

regulations, and shall, on conviction, be liable to a fine (multa) not

exceeding twenty-three thousand and two hundred and ninety-three

euro and seventy-three cents (€23,293.73) or to imprisonment for a

term not exceeding six months, or to both such fine and

imprisonment.

Notwithstanding any other law, proceedings for an offence

against these regulations may be commenced at any time within

six years from the commission of the offence.