Water Industry Act 1991

2 (1) The existing appointee, acting with the consent of the new appointee [F1 and, in relation to the matters affecting them, of any other appointees], may make a scheme under this Schedule for the transfer of property, rights and liabilities from the existing appointee to the new appointee. U.K.

(2) A scheme under this Schedule shall not take effect unless it is approved by the Secretary of State or the Director.

(3) Where a scheme under this Schedule is submitted to the Secretary of State or the Director for his approval, he may, with the consent of the new appointee [F2 and the existing appointee] modify the scheme before approving it.

(4) If at any time after a scheme under this Schedule has come into force in relation to the property, rights and liabilities of any company the Secretary of State considers it appropriate to do so and the existing appointee [F3 and the new appointee] consent to the making of the order, the Secretary of State may by order provide that that scheme shall for all purposes be deemed to have come into force with such modifications as may be specified in the order.

(5) An order under sub-paragraph (4) above may make, with effect from the coming into force of the scheme to which it relates, any such provision as could have been made by the scheme and, in connection with giving effect to that provision from that time, may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(6) In determining, in accordance with his duties under Part I of this Act, whether and in what manner to exercise any power conferred on him by this paragraph the Secretary of State or the Director shall have regard to the need to ensure that any provision for the transfer of property, rights and liabilities in accordance with a scheme under this Schedule allocates property, rights and liabilities to the different companies affected by the scheme in such proportions as appear to him to be appropriate in the context of the different functions which will, by virtue of this Act, be carried out at different times on and after the relevant date by the new appointee, by the existing appointee and by any other appointees.

(7) It shall be the duty of the new appointee, of the existing appointee and of any other appointees to provide the Secretary of State or the Director with all such information and other assistance as he may reasonably require for the purposes of, or in connection with, the exercise of any power conferred on him by this paragraph.

[F4 (7A) In a case specified in paragraph 1(3A) above—

(a) the preceding provisions of this paragraph shall have effect as if—

(i) any reference to the existing appointee were a reference to the transferor;

(ii) any reference to the new appointee were a reference to the transferee; and

(iii) any reference to other appointees were a reference to other relevant companies; and

(b) sub-paragraph (6) above shall have effect as if the reference to functions were, in relation to a company which is a licensed water supplier, a reference to activities authorised by its licence and any statutory functions imposed on it in consequence of its licence.]

(8) A company which without reasonable excuse fails to do anything required of it by virtue of sub-paragraph (7) above shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.

(9) Without prejudice to the other provisions of this Act relating to the special administrator of a company, anything which is required by this paragraph to be done by a company shall, where that company is a company in relation to which a special administration order is in force, be effective only if it is done on the company’s behalf by its special administrator.

Textual Amendments

F1 Words in Sch. 2 para. 2(1) omitted (E.W.) (1.4.2011) by virtue of Flood and Water Management Act 2010 (c. 29), s. 49(3), Sch. 5 para. 1(2) (with s. 49(1)(6)); S.I. 2011/694, art. 3(j) (with art. 5(3))

F2 Words in Sch. 2 para. 2(3) substituted (E.W.) (1.4.2011) by Flood and Water Management Act 2010 (c. 29), s. 49(3), Sch. 5 para. 1(3) (with s. 49(1)(6)); S.I. 2011/694, art. 3(j) (with art. 5(3))

F3 Words in Sch. 2 para. 2(4) substituted (E.W.) (1.4.2011) by Flood and Water Management Act 2010 (c. 29), s. 49(3), Sch. 5 para. 1(4) (with s. 49(1)(6)); S.I. 2011/694, art. 3(j) (with art. 5(3))

F4 Sch. 2 para. 2(7A) inserted (1.12.2005) by Water Act 2003 (c. 37), ss. 101(1), 105(3), Sch. 8 para. 51(6); S.I. 2005/2714, art. 3(c) (with Sch. para. 8)