After that subsection, there is inserted—

“(2A)

The purposes of a special administration order made in relation to any company which is a qualifying licensed water supplier shall be—

(a)

the transfer to another company or companies, as a going concern, of so much of the company’s undertaking as it is necessary to transfer in order to ensure that activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below may be properly carried on; and

(b)

the carrying on of those activities pending the making of the transfer.”

In subsection (4), for the words from “a company” to the end there is substituted—

“(a)

a company is replaced by another as a relevant undertaker without an appointment or variation under Chapter 1 of this Part; or

(b)

a company carries on activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below formerly carried on by another company,

in pursuance of a special administration order. ”

After subsection (5), there is inserted—

“(6)

For the purposes of this section, sections 24 to 26 below and Schedule 2 to this Act, a licensed water supplier is a qualifying licensed water supplier if—

(a)

it is the holder of a combined licence (within the meaning of Chapter 1A of this Part); and

(b)

the introduction of water by it which is permitted under section 66B or 66C below is designated as a strategic supply under section 66G below or the introductions of water by it which are so permitted are designated as a collective strategic supply under section 66H below.”