Limitation Act 1980

[DEC73]

Hi All

 

Can anyone offer me advise on the following:

 

Thames Water have accepted responsibilty for incorrectly billing my business for 13years. So far I have negotiated a 45% discount on the money owed and they are adament that in line with the Limitation Act1980 they can back charge me 6 years. They quote:

 

Time limit for actions for sums recoverable by statute.

 

(1)An action to recover any sum recoverable by virtue of any enactment shall not be brought after the expiration of six years from the date on which the cause of action accrued.

 

As no bills were sent for 13 years, and TW did not discover there error until June 2104 - does the cause of action start in June 2014 when they discovered the error or June 2008 the 6 years prior they say they are entitled to backdate? There had be no communication from TW prior to June 2014.

 

Any thoughts?

 

thanks DEC

[unclebulgaria67]

They can backbill for 6 years according to the Citizen Advice site, who say that you should try to negotiate a discount, in view of the error.

 

But there is a question regarding when the cause of action accrued. Not something I know the answer in this situation, as no doubt there is specific law regarding water bills. When the water industry was privatised, because private water supplies cannot be cut off, the government passed law which gave water companies some advantages. For gas and electric, there are backbilling rules limiting this to 12 months, but this does not apply to water.

[AndyOrch]

If you're faced with a backdated bill and you don't pay it, the water company can take you to court to recover the debt. They have to do this within six years, under the Limitation Act 1980. There are no legal limits to amount they can recover, but in practice they may decide to charge you for this year plus the last six years. The Consumer Council for Water can give information on how debts have been recovered by water companies in the past. The water company can't disconnect your water supply if you don't pay.

 

http://www.legislation.gov.uk/ukpga/1991/56/contents Water Industry Act 1991

 

http://www.ofwat.gov.uk/search.form?dosearch=true&c=83a17063-3eb9-11dd-b29f-73f2a69b6c97 Determinations.

 

Andy

[DEC73]

Hi Andyorch & Unclebulgaria67

 

Yes they can go back 6 years from the date the cause of action accrued.

 

TW are agrguing the cause of action was them raising a bill. Thus 6 years from 27th June 2014.

 

However I would like to know if actually the cause of action is when the breach occured - this being sometime on 2001 when they installed the meter and then failed to bill on it. If this is the case I may be able to argue that it is statute barred?

 

Any advice?

thanks

DEC

[andydd]

How much does the 45% discount amount to ?

 

If they have been overcharging you, and you habve paid these overcharged amounts, there is no time limit for claiming back the overcharged amounts PLUS 8% interest as per S32 of Limitation Acts, reagrding farud, conceal;ment or mistakes. I used this in a court claim and it came to a large amount when you add on 8% interest.

[AndyOrch]

Hi Andyorch & Unclebulgaria67

 

Yes they can go back 6 years from the date the cause of action accrued.

 

TW are agrguing the cause of action was them raising a bill. Thus 6 years from 27th June 2014.

 

However I would like to know if actually the cause of action is when the breach occured - this being sometime on 2001 when they installed the meter and then failed to bill on it. If this is the case I may be able to argue that it is statute barred?

 

Any advice?

thanks

DEC

 

Im afraid that would not work DEC73...you cant extend a period to make it fit in line with the Statute of Limitation...they can go back 6 years