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Ofwat, as the independent economic regulator, carries out its work in the manner it considers best meets its duties, including its duty to secure that water companies properly carry out their functions.<\/p>

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Where companies have failed to meet statutory or licence obligations, Ofwat is responsible for enforcing. Ofwat have the power to take action through an enforcement order or financial penalty (up to 10% of a company\u2019s relevant annual turnover).<\/p>

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The ultimate enforcement tool is an application for special administration. The Secretary of State, or Ofwat with the consent of the Secretary of State can apply to the High Court for a special administration order. The High Court can only make a special administration order in certain circumstances, including where it is satisfied that:<\/p>