91.— (1) Subject to subsection (4), a water services authority may by order take over the operation or management of a waterworks or waste water works on a temporary basis (with or without the consent of the owner or trustees of the owner or other persons entitled to sell it) where—

(a) in the opinion of the water services authority—

(i) the waterworks or waste water works is being operated or managed in such manner as to cause, or be likely to cause, a risk to human health or the environment,

(ii) the relevant licence holder under section 81 has persistently failed to comply with the conditions of a water services licence, or

(iii) the resources of the licence holder under section 81, in terms of financial, operational or management capacity, or access to the same, are not sufficient to ensure the effective or efficient provision of water services in accordance with prescribed standards,

or

(b) a water services licence for the scheme has been refused or revoked.

(2) Where a water services authority has taken over the management and operation of a waterworks or waste water works in accordance with subsection (1)—

(a) the water services authority may take such action as it considers necessary, in accordance with its powers under this Act, to provide water services through the waterworks or waste water works on behalf of the owner or trustees,

(b) the water services authority shall not be liable for existing debts and liabilities in relation to the waterworks or waste water works, but may at its discretion discharge such debts or liabilities, in whole or in part.

(3) A water services authority may recover all or part of its costs under this section from the owner or trustees of the owner of the waterworks or waste water works.

(4) A temporary take-over by a water services authority of the operation or management of a waterworks or waste water works under subsection (1) shall be reviewed by the water services authority at intervals not exceeding 12 months.

(5) If, in the opinion of the water services authority, arising from a review under subsection (4), the relevant water services provider—

(a) is capable of resuming the operation or management of the waterworks or waste water works, the take-over under subsection (1) shall cease as and from a date to be notified by the water services authority,

(b) is not capable of resuming the operation or management of the waterworks or waste water works, the water services authority may—

(i) by order extend the temporary take-over of the operation or management of the waterworks or waste water works under subsection (1) for a further period not exceeding 12 months,

(ii) take into public charge or acquire the waterworks or waste water works in accordance with section 95,

(iii) acquire the waterworks or waste water works by compulsory purchase order in accordance with its powers under this Act, or

(iv) provide alternative water services to the users of the water services being provided via the waterworks or waste water works.

(6) A water services licence issued to a water services provider under section 81 in respect of any relevant undertaking, or any relevant licence under section 63 or under section 4 or 16 of the Act of 1977, will lapse for the duration of the take-over of the management or operation of the undertaking.