Explanatory note

This Order permits the Scottish Ministers to lend sums of such amounts as they may determine to the water and sewerage services undertaking established by Scottish Water under section 13 of the Water Services etc. (Scotland) Act 2005 (“the Act”), in the circumstances specified in article 3 of the Order. The undertaking’s functions under section 13(4) of the Act are to become a water services and sewerage services provider and to perform activities authorised by the water services and sewerage services licences held by it. Section 13(7) provides that the undertaking may engage in any activity which it considers is not inconsistent with the performance of its licensed activities. Article 3 of the Order specifies that sums lent by the Scottish Ministers are to be used to enable the undertaking to perform its licensed activities.