Water Companies: Insolvency

(asked on 11th November 2025) - View Source

Question to the Department for Environment, Food and Rural Affairs:

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 Portrait
Emma Hardy
Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This question was answered on 19th November 2025

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.

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