Member

The new clause proposed by Amendment 99 looks to create a legal obligation for the Secretary of State to apply to the courts to place a water company into special administration should certain conditions be met. Special administration is the ultimate regulatory enforcement tool and, as such, the bar is set high. A water company can already be placed into special administration on performance grounds where it is in such serious breach of its principal statutory duties, or an enforcement order, that it is inappropriate for the company to retain its licence, as set out in Section 24 of the Water Industry Act 1991. We believe that lowering the statutory threshold for special administration on performance grounds would be inappropriate and could impact the investability of the water sector. For these reasons, I hope my noble friend understands why we consider her amendment to be unnecessary.