The Water Industry (Special Administration) Regulations 2024

EXPLANATORY NOTE

(This note is not part of these Regulations)

These Regulations extend to England and Wales.

These Regulations make provision that contributes to the modernisation of the special administration procedure that applies to water industry companies (“special administration”).

Special administration regimes may be initiated by an order of the court under sections 24 and 25 of the Water Industry Act 1991 (c. 56) (“the 1991 Act”).

Before the commencement of paragraph 6 of Schedule 5 to the Flood and Water Management Act 2010 (c. 29) (“the 2010 Act”), the detailed conduct of special administration regimes was governed by an old, saved version of Part 2 of the Insolvency Act 1986 (c. 45) (“the 1986 Act”) as that Part was applied and modified by Schedule 3 to the 1991 Act.

The Enterprise Act 2002 (c. 40) modernised ordinary administration procedure by replacing old Part 2 of the 1986 Act with Schedule B1 to the 1986 Act.

Paragraph 6 of Schedule 5 to the 2010 Act amends section 23 of the 1991 Act so that Schedule B1 to the 1986 Act applies in relation to the conduct of special administration (instead of old Part 2 of that Act) subject to provision made in regulations such as these (see section 23(3) and (3A) of the 1991 Act).

These Regulations perfect the transition from the provisions of old Part 2 of the 1986 Act to those in Schedule B1.

In relation to special administration, these Regulations apply, disapply and modify provisions of Schedule B1, the rest of the 1986 Act, the Companies Act 2006 (c. 46) and other provisions that usually apply in relation to or by reference to ordinary administration.

These Regulations amend section 26 of the 1991 Act, which makes provision about the nature of the relationship between special administration and other insolvency procedures.

These Regulations also amend Schedule 1 to the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (2013/1582) in order to address a legislative conflict that would otherwise have arisen as a consequence of the transition to the modernised special administration regime.

Part 1 deals with definitions and other introductory matters.

Part 2 applies and disapplies provisions of the 1986 Act in relation to special administration.

Part 3 makes general modifications to the 1986 Act and other enactments as they apply in relation to special administration.

Chapter 1 of Part 4 makes specific modifications to Schedule B1 to the 1986 Act as it applies in relation to special administration.

Chapter 2 of Part 4 makes specific modifications to other provisions of the 1986 Act as they apply in relation to special administration.

Part 5 amends section 26 of the 1991 Act so that it prevents Schedule B1 to the 1986 Act from being used to appoint an ordinary administrator in relation to a water industry company.

Part 6 makes specific modifications to Parts 26 and 26A of the Companies Act 2006 as those Parts apply to companies in special administration.

Part 7 makes transitional and consequential provision.

A full impact assessment has not been produced for this instrument as no, or no significant impact on the private, voluntary or public sector is foreseen.