55Power to take over operations

55 Power to take over operations

(1)  If –

(a) a regulated entity contravenes this Act or a code, or a regulated entity's licence is suspended, cancelled or surrendered; and

(b) it is necessary, in the Regulator's opinion, to take over some or all of the regulated entity's operations to ensure that the regulated entity's customers receive an adequate provision of regulated services –

the Minister, on receipt of the written advice of the Regulator, may make an order under this section (referred to as a "step-in-order").

(2)  Before a step-in-order is made under this section, the Minister must give the regulated entity a reasonable opportunity to make submissions in respect of the proposed order.

(3)  A step-in-order –

(a) authorises the Regulator to appoint a step-in-operator to take over the regulated entity's operations or a specified part of the regulated entity's operations; and

(b) may specify that –

(i) the step-in-operator has such functions and powers in relation to the regulated entity's operations as are specified in the order; and

(ii) the regulated entity is to stop providing regulated services to specified customers on and from a specified date; and

(iii) upon commencement of provision of water services and sewerage services by the step-in-operator, the specified customers become, in relation to the provision of any regulated services that are the subject of the step-in-order, the customers of the step-in-operator; and

(iv) each customer referred to in subparagraph (iii) and the step-in-operator are taken to have entered into a special circumstances contract under such terms as are determined under subsection (4) for the purposes of this section or as otherwise specified in the order; and

(v) the step-in-operator must have access to, and take control of, the water infrastructure and sewerage infrastructure and other property, including intellectual property, licences and employees, of the regulated entity as is necessary for the purposes of carrying on the operations specified in the order; and