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The provisions of section 10 of the Water Industry Act 1991 (transitional provision with respect to replacement appointments) shall become subsection (1) of that section and the following subsections shall be added at the end—
“(2)Subsections (3) and (4) below apply where, by such an appointment or variation, one company (“the new undertaker”) is to replace another company as a relevant undertaker, but the appointment or variation has not come into force.
(3)The following provisions of this Act shall (except where they are inapplicable to the kind of undertaker in question) apply in relation to the new undertaker as if the appointment or variation had come into force—
(a)sections 18 to 24 and Schedule 3;
(b)sections 32 to 35;
(c)section 155 and Schedule 9;
(d)sections 156, 158 to 161 and 163 to 167 and Schedule 11;
(e)sections 168 to 171, 173, 174, 178 to 180 and Schedule 12;
(f)sections 181 to 183 and Schedule 13;
(g)sections 184 to 188 and Schedule 14;
(h)sections 189 to 192, 197 to 200, 202, 203, 206, 208, 209, 211, 212 and 217.
(4)Such of the conditions imposed on the new undertaker under section 11 below as the Director may specify in a written notice given by him to the undertaker shall have effect, in relation to the operation of any provision mentioned in subsection (3) above before the appointment or variation comes into force, as if the appointment or variation had come into force.
(5)The Secretary of State may by regulations amend subsection (3) above by adding to, removing or modifying references to provisions of this Act.”