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Jo C.
Jo C., Barrister
Category: Law
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Experience:  Over 5 years in practice
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We have an engineering business and several years ago we changed

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We have an engineering business and several years ago we changed energy (electricity) supplier. The new supplier has never billed us....we persistently chased them for approx 18 months but they kept telling us they weren't the 'owners' of our meter. The change of supply and chasing them for bills was all done by telephone so we have no record of communications. We gave up at that point but several years have now elapsed and we are concerned at the debt that is building up. We have made provisions in our accounts for the debt but as it is our own estimate, we could be significantly under or over providing. Is there a limit on the number of years they can back-bill us? I understand there is a voluntary agreement to only back-bill domestic customers and micro-businesses (we are slightly bigger than micro). Statute of Limitations says 6 years but would that apply in our case? At least if it were limited to 6 years we could be confident that our provisions are in excess of the amount we will be back-billed. Thanks for your help. Jacky
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
it is an arguable point actually.
The Limitations Act 1980 does say that a contract can only be litigated upon within six years of the breach.
However, they could argue here, in legal theory, that there is an ongoing breach of contract and so time would run from the date of the last unpaid bill. It is quite unlikely that they would do that in practice as they do not seem to know of the provision but it could happen at least in theory.
That said, the greater the delay the greater the chances are that they will have lost their records and be unable to prove the amount due.
Can I clarify anything for you?
Jo
Jo C., Barrister
Category: Law
Satisfied Customers: 69772
Experience: Over 5 years in practice
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