5   Prohibition of unlicensed network operation and water supply

(1)  A person must not:

(a)  construct, maintain or operate any water industry infrastructure, or

(b)  supply water, or provide a sewerage service, by means of any water industry infrastructure,

      otherwise than under the authority of a licence.

Maximum penalty: 10,000 penalty units (in the case of a corporation) and 2,500 penalty units (in any other case).

Note. An offence against subsection (1) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 97.

(2)  Subsection (1) (b) does not apply to or in respect of the supply of water, or the provision of sewerage services, by a licensed network operator to a licensed retail supplier or public water utility.

(3)  This section does not apply to a public water utility in relation to:

(a)  the construction, maintenance or operation of water industry infrastructure situated within its area of operations, or

(b)  the supply of water, or the provision of a sewerage service, by means of water industry infrastructure situated within its area of operations.

(4)  This section does not apply to or in respect of:

(a)  such water industry infrastructure as comprises water management works to which Chapter 4, 5 or 6 of the Water Management Act 2000 applies, or

(b)  such other water industry infrastructure as is prescribed by the regulations.