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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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Simon Colledge - Orchard
Online advisor - 2 posts
Your contract was with ?XYZ? so you could bring an action for the debt against ?XYZ?. If ?XYZ? is being wound up then a liquidator will be appointed. Your debt will presumably be unsecured and therefore you will only receive money from ?XYZ? (if there is any) after all secured and preferential creditors have been paid. The liquidator should contact you in due course, however, if you are worried that ?XYZ? will not have kept records of the debt owed to you then you could search for the name of the liquidator at Companies House and contact him yourself.
You have no contractual claim against the ?new? company which is a separate legal entity even though it may be owned and controlled by the same person(s). It is theoretically possible that a claim could be brought against the ?new? company if the court ?pierced the corporate veil?. The best way of pursuing this claim would be through the liquidator of ?XYZ? but it is likely that you would need to fund this action and you should consider the size of your debt against the costs of, and the inherent risk in, any such action. You should seek formal legal advice before taking any such step.
One practical way forward might be to write to the director and set out your version of events (including any written documents backing this up) and ask him to provide suggestions as to how to resolve this matter. You might also mention that if no satisfactory response is received you intend to refer the matter to the DTI.
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