Water Industry Act 1991

Compensation in respect of discharges for works purposes

6 (1) It shall be the duty of every water undertaker—

(a) to cause as little loss and damage as possible in the exercise of the powers conferred on it by section 165 of this Act; and

(b) to pay compensation for any loss caused or damage done in the exercise of those powers.

(2) For the purposes of subsection (1) above any extra expenditure—

(a) which it becomes reasonably necessary for any other water undertaker or any sewerage undertaker or public authority to incur for the purpose of properly carrying out any statutory functions; and

(b) which is attributable to any discharge of water under section 165 of this Act,

shall be deemed to be a loss sustained by the undertaker or public authority and to have been caused in exercise of the powers conferred by that section.

(3) Any dispute as to whether compensation should be paid under sub-paragraph (1) above, or as to the amount of any such compensation, shall be referred to the arbitration of a single arbitrator appointed by agreement between the parties to the dispute or, in default of agreement, by the President of the Institution of Civil Engineers.