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Section 12J: Modification by the Secretary of State: special administration orders

Water Industry Act 1991 · 1991 c. 56View on legislation.gov.uk

Part II: APPOINTMENTMENT AND REGULATION OF UNDERTAKERS — CHAPTER I: APPOINTMENTS

This section applies in relation to a company appointed under this Chapter whose area is wholly or mainly in England.

The Secretary of State may make modifications of the conditions of the company's appointment so that they include conditions requiring or enabling the company—

to modify the charges it imposes on any persons to whom it provides services in the course of carrying out its functions so as to raise such amounts as may be determined by or under the conditions, and
to pay the amounts so raised to the Secretary of State for the purpose of making good any SAO loss.

In subsection (2) "SAO loss" means so much of any loss or expense—

which is incurred by the Secretary of State (whether before or after the coming into force of this section) in the giving of relevant financial assistance, and
which the Secretary of State does not expect (apart from the exercise of the powers under this section) to recover.

In subsection (3) "relevant financial assistance" means financial assistance of any description given under section 153 in connection with a special administration order made in respect of—

the company whose appointment is modified, or
any other company which holds or held an appointment under this Chapter and whose area is or was wholly or mainly in England.

Sums received by the Secretary of State by virtue of this section must be paid into the Consolidated Fund.

A condition of appointment included under subsection (2)(b) may require amounts to be held on trust pending their payment to the Secretary of State.

The reference in subsection (3)(a) to loss or expense incurred in the giving of relevant financial assistance includes loss or expense incurred as a result of, or otherwise in connection with, the giving of the assistance.

The power of the Secretary of State to modify under this section the conditions of a company's appointment includes power to make such incidental or consequential modifications of the conditions of any appointments under this Chapter as the Secretary of State considers necessary or expedient.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.