Article 32 FundingI1

England and Wales

(1)

The undertaker must not exercise the powers conferred by the provisions referred to in paragraph (2) in relation to any Order land unless it has first put in place either—

(a)

a guarantee and the amount of that guarantee approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation pursuant to the provisions referred to in paragraph (2); or

(b)

an alternative form of security and the amount of that security for that purpose approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation pursuant to the provisions referred to in paragraph (2).

(2)

The provisions are—

(a)

article 19 (compulsory acquisition of land);

(b)

article 21 (compulsory acquisition of rights);

(c)

article 23 (private rights);

(d)

article 25 (acquisition of subsoil only);

(e)

article 27 (rights under or over streets);

(f)

article 28 (temporary use of land for carrying out the authorised project);

(g)

article 29 (temporary use of land for maintaining the authorised project);

(h)

article 30 (statutory undertakers); and

(i)

article 31 (recovery of costs of new connections).

(3)

A guarantee or alternative form of security given in respect of any liability of the undertaker to pay compensation pursuant to the provisions referred to in paragraph (2) is to be treated as enforceable against the guarantor or person providing the alternative form of security by any person to whom such compensation is payable and must be in such a form as to be capable of enforcement by such a person.

(4)

Nothing in this article requires a guarantee or alternative form of security to be in place for more than 15 years after the date on which the relevant power is exercised.

(5)

Nothing in this article requires a guarantee or alternative form of security to be put in place by the undertaker where—

(a)

the undertaker provides the Secretary of State with financial information sufficient to demonstrate that it has appropriate funding in place without a guarantee or alternative form of security to meet any liability to pay compensation under this Order in respect of the exercise of the relevant powers in paragraph (1); and

(b)

The Secretary of State provides written confirmation that no such guarantee is required, such written confirmation not to be unreasonably withheld.

Annotations

Commencement

I1: Art. 32 in force at 28.7.2025, see art. 1