(1) The Water Charges Equalisation Act 1977 shall cease to have effect.
(2) If the Secretary of State is satisfied—
(a) that, had the Act of 1977 not ceased to have effect, he would have been required to make adjustments under section 3(3) of that Act on making the next orders under sections 1 and 2, and
(b) that it is expedient to make provision in lieu of those adjustments,
he shall comply with subsection (3) below in relation to every statutory water undertaker as respects which such an adjustment would, in his opinion, have been so required.
(3) Where the Secretary of State is required to comply with this subsection in relation to any statutory water undertaker, he shall—
(a) in a case where the adjustment would have been by way of a reduction in the equalisation levy payable by, or an increase in the equalisation payment payable to, the undertaker, pay to that undertaker out of money provided by Parliament the appropriate amount, or
(b) in any other case, by order direct that undertaker to pay to him the appropriate amount.
(4) In subsection (3) above “ appropriate amount ” means an amount equal to the adjustment which, in the opinion of the Secretary of State, would have been required under section 3(3) in the case of the undertaker in question.
(5) No order shall be made under subsection (3) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.
(6) Any sums received by the Secretary of State under this section shall be paid by him into the Consolidated Fund.