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2 year old water bill

hey guys, I have an issue with south west water. I fell ill with depression back in 2008. I was ill for about 4 years. within this time I was claiming employment support allowance and my water bill was being paid by water direct. In 2012, march, I started work again after recovering. I called through to the water company and advised this and that I wanted to take up paying my water bill. I was advised by them that my bill was still being paid by water direct at this time and if anything changed they would contact me directly. I then had a bill through about 12 months later and the bill was for £1700 there about's. the bill clearly stated that there was no need to worry, that the bill was for information sake and water direct was still paying the bill. about another 12 months later they sent me the same bill again demanding I pay this right away I called them up and arranged to pay £80 a month which I cannot afford but they demanded this. I still have the original bill stating that I need to pay nothing and have found that on this bill they had a final payment from water direct on the 5th of July 2012 and the date of the letter was for 16th of Feb. 2013. the next letter I had advising I needed to pay was 3rd Jan 2014. Do I have to pay this bill as it was there mistake. If I do, do I have to pay there high demand each month as again this was there mistake. any help would be great, many thanks in advance.

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