The Secretary of State may, with the consent of the Treasury, agree to indemnify any water undertaker in respect of liabilities which it may incur in complying with arrangements entered into by it pursuant to section 87(1) above.
The Secretary of State may also, with the consent of the Treasury, agree to indemnify any water supply licensee in respect of liabilities which the licensee may incur—
in supplying water to which fluoride has been added by a water undertaker by virtue of any such arrangements;
(if the licensee is introducing water into the water undertaker's supply system) in complying with any obligation imposed on the licensee by the undertaker in consequence of the arrangements.
The Secretary of State may by regulations make provision with respect to—
the matters in respect of which an indemnity may be given under subsection (1) or (2) above;
the form and terms of any such indemnity; and
such ancillary matters as he sees fit.