72Provider to ensure water supply when existing supplier facing significant problem, etc

1. This section applies if—

2. a water service provider with responsibility for water supply services—
   1. becomes aware that a drinking water supplier operating in the provider’s service area is facing a significant problem or potential problem in relation to any of its drinking water supplies; and
   2. notifies the Water Services Authority of the provider’s concerns and discusses them with the Authority; or
3. the Water Services Authority requires the water service provider to take action under this section.

4. The water service provider must, as the circumstances allow and within a time frame determined by the Water Services Authority,—

5. work collaboratively with the supplier, the consumers of the supply, and the Water Services Authority to identify 1 or more of the following:
   1. an immediate solution to the problem:
   2. a temporary solution to the problem:
   3. a permanent solution to the problem; and
6. ensure that drinking water is supplied to the affected consumers on a temporary or permanent basis if—
   1. the supplier is unable to continue to provide a supply that meets the requirements under the Water Services Act 2021; and
   2. an alternative solution is not readily available, or cannot be agreed by the parties involved within the time frame determined by the Water Services Authority.

7. In complying with subsection (2), the water service provider may consider a range of options, including—

8. temporarily taking over the management and operations of the drinking water supply; and
9. permanently taking over the management and operations of the drinking water supply; and
10. ensuring that drinking water continues to be provided by other means.

11. The water service provider is not required to provide the supply by means of a reticulated network.

12. If a water service provider permanently takes over the management and operations of a drinking water supply, the provider, the Water Services Authority, the former supplier, and the affected consumers must work together to determine how to deal with—

13. any assets and liabilities of the service taken over; and
14. any legal or other issues that may affect the provider’s ability to manage and operate the drinking water supply, such as access to the land on, or beneath which, assets are situated; and
15. how the provider will be compensated for costs incurred in taking over responsibility for the drinking water supply.

16. A water service provider referred to in subsection (5)—

17. may—
    1. charge for any drinking water services it provides to affected consumers; and
    2. recover its costs from the previous supplier; but
18. when making decisions about future charges and funding arrangements, must—
    1. take reasonable steps to ascertain and consider the financial circumstances facing the affected consumers; and
    2. consider the range of available funding sources; and
    3. on request, demonstrate that it has considered the matters referred to in subparagraphs (i) and (ii).