SCHEDULE 2 Transitional Provision on Termination of Appointments
Cases where Schedule applies
1
(1)
This Schedule shall apply in each of the cases specified in sub-paragraphs (2) F1to (3A) below.
(2)
The first case in which this Schedule applies is where—
(a)
the Secretary of State or F2the Authority is proposing to make an appointment or variation replacing a company as a relevant undertaker; and
(b)
by virtue of that appointment a company (“the new appointee”) will hold an appointment as the water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which, until the relevant date, another company (“the existing appointee”) holds an appointment as the water undertaker or, as the case may be, sewerage undertaker.
(3)
The second case in which this Schedule applies is where—
(a)
the High Court has made a special administration order in relation to any company F3holding an appointment under Chapter 1 of this Part(“the existing appointee”); and
(b)
it is proposed that on and after the relevant date another company (“the new appointee”) should, without any such appointment or variation as is mentioned in sub-paragraph (2) above having been made, hold an appointment as water undertaker or sewerage undertaker for an area which is or includes the whole or any part of the area for which until that date the existing appointee holds an appointment as water undertaker or, as the case may be, sewerage undertaker.
F4(3A)
The third case in which this Schedule applies is where—
(a)
the High Court has made a special administration order in relation to any company which is F5a qualifying water supply licensee or a qualifying sewerage licensee (“the transferor”); and
(b)
it is proposed that on and after the relevant date another company (“the transferee”) should F6carry on—
(i)
activities relating to the introduction or introductions of water mentioned in section 23(6)(b) of this Act which were carried on by the transferor until that dateF7; or
(ii)
activities relating to the removal or removals of matter mentioned in section 23(9) of this Act which were carried on by the transferor until that date (as the case may be).
(4)
In this Schedule—
“existing appointee” and “new appointee” shall be construed in accordance with sub-paragraph (2) or (3) above according to whether this Schedule is applying in the case mentioned in the first or second of those sub-paragraphs;
F8“new owner” means, where securities are transferred to a company as described in paragraph 2A(1)(b) or (2)(b), the company to which the transfer is made;
“other appointees” means any companies, other than the existing appointee and the new appointee, which are likely on or at a time after the relevant date to be holding appointments as water undertakers or sewerage undertakers for any area which is or includes any part of the area for which the existing appointee has at any time held an appointment as water undertaker or sewerage undertaker;
(a)
holding appointments as water undertakers for any area in which, or in part of which, the activities relating to the introduction or introductions of water mentioned in section 23(6)(b) of this Act will be carried on by the transferee; F11or
(b)
holding appointments as sewerage undertakers for any area in which, or in part of which, the activities relating to the removal or removals of matter mentioned in section 23(9) of this Act will be carried on by the transferee (as the case may be);
“the relevant date” means—
(a)
where this Schedule applies by virtue of sub-paragraph (2) above, the coming into force of the appointment or variation mentioned in paragraph (a) of that sub-paragraph; and
(b)
where this Schedule applies by virtue of sub-paragraph (3) F12or (3A) above, such day, being a day before the discharge of the special administration order takes effect, as the High Court may appoint for the purposes of this Schedule; and
“special administrator”, in relation to a company in relation to which a special administration order has been made, means the person for the time being holding office for the purposes of section 23(1) of this Act;
F13“transferor” and “transferee” shall be construed in accordance with sub-paragraph (3A) above.