Paragraph 41 I1

(1)

Subject to sub-paragraphs (2) and (3), if by reason or in consequence of the construction of any specified works any damage is caused to any apparatus or alternative apparatus (other than apparatus the repair of which is not reasonably necessary in view of its intended removal for the purposes of those works) or property of the utility undertaker, or there is any interruption in any service provided, or in the supply of any goods, by the utility undertaker, the undertaker must—

(a)

bear and pay within 30 days of receipt of an itemised invoice from the utility undertaker the cost reasonably and properly incurred by the utility undertaker in making good such damage or restoring the supply; and

(b)

reimburse the utility undertaker for and indemnify for any other losses, expenses, demands, proceedings, damages, claims, penalty or costs properly incurred by or recovered from the utility undertaker, by reason or in consequence of any such damage or interruption or the utility undertaker becoming liable to any third party as aforesaid other than arising from any default of the utility undertaker.

(2)

The fact that any act or thing may have been done by the utility undertaker on behalf of the undertaker or in accordance with a plan approved by the utility undertaker or in accordance with any requirement of utility undertaker or under its supervision will not, subject to sub-paragraph (3), excuse the undertaker from liability under the provisions of sub-paragraph (1), unless utility undertaker fails to carry out and execute the works properly with due care and attention and in a skilful and workman like manner or in a manner that does not accord with the approved plan agreed by utility undertaker in accordance with paragraph 37(4) and paragraph 39(4).

(3)

Nothing in sub-paragraph (1) imposes any liability on the undertaker in respect of—

(a)

any damage or interruption to the extent that it is attributable to the neglect or default of the utility undertaker , its officers, servants, contractors or agents;

(b)

any part of the specified works carried out by the utility undertaker in the exercise of any functions conferred by this Order pursuant to a transfer or grant under article 7 (consent to transfer benefit of the Order); or

(c)

any indirect or consequential loss of any third party (including but not limited to loss of use, revenue, profit, contract, production, increased cost of working) arising from any such damage or interruption, which is not reasonably foreseeable.

(4)

The utility undertaker must give the undertaker reasonable notice of any such third party claim or demand and no settlement, admission of liability or compromise must be made without the consent of the undertaker and, if such consent is withheld, the undertaker shall have the sole conduct of any settlement or compromise or of any proceedings necessary to resist the claim or demand.

(5)

The utility undertaker must, in respect of any matter covered by the indemnity given by the undertaker in this paragraph, at all times act reasonably and in the same manner as it would as if settling third party claims on its own behalf from its own funds.

(6)

The utility undertaker must use its reasonable endeavours to mitigate in whole or in part and to minimise any costs, expenses, loss, demands, and penalties to which the indemnity under this paragraph applies and if reasonably requested to do so by the undertaker the utility undertaker must provide an explanation of how the claim has been minimised.

Annotations

Commencement

I1: Sch. 13 para. 41 in force at 13.11.2025, see art. 1

Notes on the whole SI

Textual amendments

F1: Words in Preamble substituted (6.2.2026) by The Stonestreet Green Solar (Correction) Order 2026 (S.I. 2026/131), art. 1, Sch.