Elec-tricky situation

When I moved into my flat six years ago, I was advised by the estate agent that the service charge — which appeared substantial at around £250/month — included water and electricity bills. On the annual audited accounts for the flats, electricity duly appeared as approximately £35,000, split between the flats pro rata based upon square footage. The fact that I never received any utility bills was occasionally a problem when trying to prove my address and I thought on more than one occasion that this arrangement was not the greatest way to encourage people to save energy, but, I thought, such is metropolitan life.

I was therefore rather surprised to receive a very substantial electricity bill last Friday from a company of which I had not even been aware I was customer, which led me to discover:

1. the estate agent was a lying bastard;
2. the £35,000 on the audited accounts was just for the electricity used in the common parts of the building;
3. tenants were responsible for their own electricity separately; and
4. I was six years in arrears.

This is going to take some sorting out, but in looking into it I have found out some useful information that may be helpful to readers. Contractual limitation in England and Wales is set at 6 years by the Limitation Act 1980. So there was nothing in principle in the general law to stop them billing virtually the whole amount outstanding. However, thanks to a recent decision of Ofgem, from 1 July 2006 electricity bills may not be backdated more than two years.

I wonder whether that was why the electricity company sent me the bill one day before 1 July 2006? Whether it was or not, I’m not having it: the bill is based on estimated figures, so I’m going to insist upon a meter reading. If they don’t like it, I would note that also from 1 July 2006, customers can refer complaints to the Energy Supply Ombudsman, who apparently has the power to award customers up to £5,000 in compensation.