The Enterprise Act 2002 (Merger Fees and Determination of Turnover) (Amendment) Order 2004

• Citation: S.I. 2004/3204
• Sections: 2

Section 1 Citation and commencement

This Order may be cited as the Enterprise Act 2002 (Merger Fees and Determination of Turnover) (Amendment) Order 2004 and shall come into force on 29th December 2004.

Section 2 Amendments to the Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003

(1) The Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003 is amended as follows.

(2) In article 2 (interpretation)—

(a) in paragraph (c), the word “and” shall cease to have effect;

(b) in paragraph (d)—

(i) after the words “section 22 or 33 of the Act ” there is inserted “or section 32 of the Water Industry Act 1991”; and

(ii) for the words “section 45 of the Act.” there is substituted “section 45 of the Act; and”;

(c) after paragraph (d) there is inserted—

(e) “water enterprise” means an enterprise carried on by a water undertaker or sewerage undertaker.

(3) In article 3 (matters in respect of which fees are payable), after paragraph (c) there is inserted—

(d) the making by the OFT of a merger reference to the Commission under section 32 of the Water Industry Act 1991.

(4) In article 5 (amount of fees)—

(a) in paragraph (1), for the words “article 3” there is substituted “article 3(a) to (c)”;

(b) in paragraph (2), for the words “this article” there is substituted “paragraph (1)”;

(c) in paragraph (3), for the words “this article” there is substituted “paragraph (2)”; and

(d) after paragraph (3) there is inserted—

(4) The amount of the fee payable under article 3(d) shall be—

(a) where the value of the turnover in England and Wales of the water enterprise which has been taken over or (as the case may be) which it is proposed should be taken over, does not exceed £20 million, £5,000;

(b) where the value of such turnover exceeds £20 million but does not exceed £70 million, £10,000;

(c) where the value of such turnover exceeds £70 million, £15,000.

(5) For the purposes of paragraph (4) the value of the turnover in England and Wales of the water enterprise which has been taken over or (as the case may be) which it is proposed should be taken over, shall be determined by taking the total value of the turnover of the water enterprises ceasing to be distinct enterprises and deducting—

(a) the turnover of any water enterprise continuing to be carried on under the same ownership and control; or

(b) if there is no water enterprise continuing to be carried on under the same ownership and control, the turnover which, of all the turnovers concerned, is the turnover of the highest value.

(6) For the purposes of paragraph (5) the turnover in England and Wales of a water enterprise shall be determined in accordance with the Regulations made pursuant to section 33(4) of the Water Industry Act 1991.

(5) In article 6 (person by whom fees are payable)—

(a) in paragraphs (2) and (5), for the words “or (c)” there is substituted “, (c) or (d)”;

(b) in paragraph (3)(a), after the words “relevant merger situation” there is inserted “or the merger or prospective merger of two or more water enterprises”;

(c) in paragraph (5), after the words “relevant merger situation” there is inserted “or the merger or prospective merger of two or more water enterprises”.

(6) In article 7 (exemption for acquisitions by small and medium sized enterprises), in paragraph (2) for the words “or (c)” there is substituted “,(c) or (d)”.

(7) In article 9 (time when fees are payable), in paragraph (2) after the words “3(b)” there is inserted “or (d)”.

(8) In article 11 (determination of turnover in the United Kingdom of an enterprise), in paragraph (1) for the words “article 5” there is substituted “article 5(3)”.