(1) A special rate or charge is not payable in relation to any land in respect of the supply of water, or the provision of a sewerage service, during the term of any contract in that regard entered into between the owner of the land and a licensed retail supplier within the meaning of the Water Industry Competition Act 2006 .
(2) If--(a) the council is a retailer of last resort within the meaning of the Water Industry Competition Act 2006 in relation to any water supply or sewerage service, and(b) a direction in relation to that service is given to the council under section 56 of that Act,the council and the owner are taken to have entered into a special circumstances contract in such terms as are prescribed by the regulations for the purposes of this subsection.