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

To ask His Majesty's Government, further to the Written Answer by Baroness Hayman of Ullock on 17 September (HL801), whether the compensation of existing shareholders is a pre-condition for the transfer of ownership of a water company in the Special Administrative Regime to a new owner.

No, there is no precondition to compensate shareholders in the case of transferring of company to new owner after a Special Administration Regime (SAR). The Procedure for a transfer scheme in a SAR is set out in Schedule 2 to the Water Industry Act 1991.