Out of the blue! Elec bill for £1595! Legal position?

TonyB

TonyB wrote:

"I haven’t had a bill for ages – do I still have to pay?
Consumers are legally bound to pay for their utilities. However, the Limitations Act 1980 prevents charges being recovered if the electricity or gas was used more than six years ago. In Scotland this period is five years.

Suppliers should at least offer a payment plan that allows you to repay any debt over the same length of time that it has built up. In other words, if you have not had a bill from your supplier for three years then, when a bill does finally appear, you should be able to spread the repayments over three years. However, if you accept a payment plan then you will not be able to change your supplier until you have cleared the outstanding debt.

However, as a result of the ‘super-complaint’ submitted by energywatch in April 2005 to the energy regulator, Ofgem (see below), energy companies have been told that, as of July 2006, they should no longer bill for any energy used by consumers more than two years previously where the company themselves has failed to provide a bill. As of July 2007, energy companies will be expected not to bill for any amount that dates back longer than a year"

Mmmmmm!

Dora, the problem of receiving a long overdue bill for goods or services can have serious repercusions on the customer both financially & healthwise. This has been recognised by Energywatch who independently campaign on behalf of power suppliers customers. As a result of their concerns over the acknowledged seriously bad efficiency of these organisations, the Office Fair Trading have made the above ruling. I never disputed the debt, was unable to pay fully now & so negotiated either payment over 5 years or a reduced capital sum immediately. They chose the reduced sum which probably covers their "costs" with little or no profit & they end up wit £1100 in their kitty rather than wait 5 years.
TonyB

Dora_the_Explorer_5

I stand by what I said, you knew it wasn't free. I wish that my account could be 'lost' and my supplier offer me the same generous terms as you have accepted in order to escape paying fully for what you have received.

twink

i agree with you dora i think if i wasnt getting a bill in i would querying it i would be afraid of it mounting up,although i pay mine monthly by direct debit, we all know it has to be paid for whatever

Tojo_Ralph

TonyB wrote:

I was offered a deferred period to repay over 3 years which unfortunatley Is an impossible target.

TonyB

TonyB wrote:

I was offered a 30% reduction if I settled imediatelly. So a saving of £500 was made & all appear to be happy.

TonyB

Whilst £1,595 over 3 years is an impossibilty ... £1,100 paid immediately is no problem?

oldwiring

It is well established that a debtor has the duty to seek out his creditor
In Walton v. Mascall F30 Parke B. states the law thus: "Now it is clear that a request for the payment of a debt is quite immaterial, unless the parties to the contract have stipulated that it shall be made; if they have not, the law requires no notice or request; but the debtor is bound to find out the creditor and pay him the debt when due." And again in Norton v. Ellam F31 the same learned judge says: "It is the same as the case of money lent payable upon request, with interest, where no demand is necessary before bringing the action. There is no obligation in law to give any notice at all; if you choose to make it part of the contract that notice shall be given, you may do so. The debt which constitutes the cause of action arises instantly on the loan." In every case, therefore, where this question arises the test must be whether the parties have, or have not, agreed that an actual demand shall be a condition precedent to the existence of a present enforceable debt.

The whole text can be found here

The fact that regulations may be passed that limit the rights of creditors in vertain cases doe not vitiate the principal that is laid down in case law.