Water Companies: Insolvency
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she will publish guidance on how (a) environmental performance, (b) repeated regulatory breaches and (c) other non-financial factors will be considered when determining to apply to the High Court for a water company special administration order.
Answered by Emma Hardy
The law states that Special Administration can only be initiated if the company becomes insolvent or they are in such serious breach of their principal statutory duties or an enforcement order that it is inappropriate for the company to retain its licence.
In determining whether to apply to the court for a Special Administration Regime, the Secretary of State would have regard to all the relevant facts and matters pertaining at the time, acting in accordance with applicable statutory duties.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →