We sought to understand would happen if a water company became insolvent. Defra told us that that the special administration regime will ensure that services are protected.78 Defra also acknowledged that there would be costs involved in setting up such a regime, which the government would seek to recover.79 If government costs cannot be recovered elsewhere, the government now has the power to recover them through customer bills.80 Defra told us that it needed to be careful about this, and the...

We sought to understand would happen if a water company became insolvent. Defra told us that that the special administration regime will ensure that services are protected.78 Defra also acknowledged that there would be costs involved in setting up such a regime, which the government would seek to recover.79 If government costs cannot be recovered elsewhere, the government now has the power to recover them through customer bills.80 Defra told us that it needed to be careful about this, and the impact on billpayers.81 Roles and responsibilities within the regulatory framework Type: conclusion | Number: 24 | Response status: not_addressed Government response: The Government is clear that the special administration regime will ensure that services are protected if a water company becomes insolvent. The Government has the power to recover the costs of setting up such a regime through customer bills if necessary. The Government is committed to ensuring that