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

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential impact of the Water (Special Measures) Act 2025 on the (a) criteria and (b) process for placing a water company into Special Administration.

Sections 14 and 15 of the Water (Special Measures) Act introduced new powers for the Secretary of State and Welsh Ministers to modify water company licences to recover any shortfall following the provision of financial assistance to a company in special administration. Additionally, section 16 of the Water (Special Measures) Act ensures that, should a water company’s creditors apply to the court for the company to be wound up, 14 days’ notice would have to be given to the Secretary of State or the Welsh Minsters and Ofwat.