Water Industry Competition Act 2006

On and from the transfer date of a declared failure, the last resort provider is to be taken to be a party, in substitution for the failed licensee, to the agreement necessary for the provision of the essential service between the failed licensee and another licensee or a public water utility, as in force immediately before the transfer date, subject to the regulations and modifications agreed between the parties, if any.

If the last resort provider proposes a modification to an agreement referred to in this section on the basis that the modification is reasonably necessary for the efficient provision of the essential service by the provider, including a modification relating to a payment to be made by the provider, the other party to the agreement must not unreasonably withhold agreement to the modification.

A dispute between the last resort provider and another person as to the application of subsection (1) or (2) is subject to arbitration under the Commercial Arbitration Act 2010.