Subject to the provisions of this section, F1Scottish Water shall make full compensation for any loss, injury or damage sustained by any person by reason of the exercise by F2Scottish Water of any of F3its powers under this Part of this Act in relation to a matter as to which he has not himself been in default.

Any question arising under this section as to the fact of loss, injury or damage or as to the amount of compensation shall, in the case of dispute, be referred to a single arbiter to be appointed by agreement between the parties or, in default of agreement, by the Secretary of State, and the arbiter may, and, if so directed by the Court of Session, shall, state a case for the opinion of that Court on any question of law arising in the proceedings.

A claim for compensation against F4Scottish Water under this section shall not be maintainable unless it is made to F5Scottish Water within F624 months after the date on which it is alleged to have arisen.

Where an owner of land claims compensation in respect of loss, injury or damage sustained by him by reason of F1Scottish Water having, in the exercise of F7its powers under this Part of this Act, constructed a sewer in, on or over his land, the arbiter in determining the amount of compensation shall determine also by what amount, if any, the value to the claimant of any land belonging to him has been enhanced by the construction of the sewer, and F8Scottish Water shall be entitled to set off that amount against the amount of any compensation awarded.

The foregoing provisions of this section shall apply to a person constructing a sewer by virtue of having been authorised to do so under section 3A(1), as they would apply to F1Scottish Water constructing a sewer under section 3(1), of this Act.