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The Water and Sewerage Services (Northern Ireland) Order 2006

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This is the original version (as it was originally made).

Compensation

7.—(1) Where, in consequence of any provision included in a transfer scheme, or anything done under this Schedule—

(a)the rights or liabilities of a third party which were enforceable against or by the Department become enforceable as to part against or by the Department and as to part against or by the successor company; and

(b)the value of any asset of that party is thereby diminished,

such compensation as may be just shall be paid to the third party by the successor company.

(2) Where—

(a)a third party would, apart from any provision of a transfer scheme or paragraph 6, have become entitled to, or to exercise, any interest or right arising or exercisable in respect of the transfer or creation in accordance with such a scheme of any assets or liabilities, and

(b)the provisions of that scheme or of paragraph 6 have the effect of preventing that party’s entitlement to, or to exercise, that interest or right from arising on any occasion in respect of anything mentioned in head (a), and

(c)provision is not made by the transfer scheme for securing that an entitlement to, or to exercise, that interest or right or an equivalent interest or right, is preserved or created so as to arise in respect of the first occasion when corresponding circumstances next occur after the transfer date,

such compensation as may be just in respect of the extinguishment of the interest or right shall be paid to the third party by the successor company.

(3) Any dispute as to whether any compensation is to be paid under this paragraph, and any dispute as to the amount of compensation to be paid, shall be referred to and determined by an arbitrator appointed by the Department.

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