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Jeffrey Thomas
Member - 14 posts
Eastern Energy supplied us with gas from 1996-1998 and from 1999-2000. For 1998-1999 we were supplied by another supplier. Powergen, who have taken over Eastern Energy have employed a billing company to scutinise the account since 1996. All invoices received from the supplier were payed in good faith in the belief that they were correct. Now they have noticed an error they made with the readings and calculations and insist that we owe them monies in the region of £30,000. UBM (the billing company and agent of Powergen) have threatened litigation and interest on the debt. This was presented to us in 2003 and has been in dispute for approx the last eighteen months. In view of the time scales involved it has been difficult for us to verify this claim given the level of resources we have. Where do we stand from a legal point of view?
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Anonymous
Have you thought of taking your problem to Energywatch who will investigate. They do have a section that looks at the I&C markets, not just domestic. You will need to have all the information to hand
Their website is www.energywatch.org.uk
I hope this helps.
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Anonymous
Difficult one but the problem is that energy used, will have to be paid for, even if a genuine mistake was made. I would advise negotiating a discount as an act of good faith on their behalf.
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Simon Colledge - Orchard
Online advisor - 2 posts
You will need to consider the terms of the Contracts entered into between your company and Eastern Energy and then Powergen, both in 1996 and in 1998 (if a second contract was entered into). There may have been amendments to the conditions of supply of which you have been notified from time to time. You need to check, in particular, for any mention of errors in readings and calculations and what the provisions are for re-calculation. If this is provided for and if the supply company has complied you will be required to pay, provided the reca;culations are in fact correct.
It is also worth checking the bills to see whether they have been based on estimates or based on actual meter readings. It is common for utility companies to charge a series of estimates and a series of under estimated bills can lead to a large catch up bill. This is perfectly legal if properly provided for under the contract and referred to in the bill.
It is worthwhile noting that a 6 year time limitation to take legal action to recover a contractual debt. Therefore it may be that certain payments they are trying to recover for the period between 1996 and 1998 cannot be included in their claim due to the Statute of Limitations.
In summary, the contract will have to be considered to see whether they are entitled to try to claw back in this way, with interest. If they are they should be put to strict proof of their readings/calculations and any supply from a period over 6 years ago should be resisted anyway.
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