Utilities debt recovery
Most councils receive frequent requests for the payment of alleged debts from utility companies or debt recovery agencies. Very often these may relate to residents in social housing, or there is insufficient information provided for a council to investigate and/or make payment; e.g. there may be no supply point reference, no indication when the debt is alleged to have been accrued, even the name of the organisation that is requested to pay may be missing. In these circumstances, conducting investigations can incur significant cost to the council and the use of a standard letter may prove useful. This is to ensure that those requesting and expecting payment should provide a reasonable level of information and therefore it is reasonable of the council to request such information, prior to conducting investigations. Similarly, responding by fax and providing email contacts for return communications should speed up the process for the payment requestor.
Where sufficient information is provided or the debt relates to premises that are known to be owned and/or occupied by the council at the time debt is alleged to have occurred, appropriate investigations should be conducted and the use of the standard letter may not be appropriate.
Where councils have well maintained and fully populated energy management systems, conducting checks with the reasonable information subsequently provided should be straightforward. However, where a council does not have energy management systems covering the majority of its sites, the directorate in control of asset management should be involved to establish whether the property is owned and/or managed by the council and during what period.
We have developed a sample standard letter Opens in a new window **, which has been approved by the Haringey Council legal department. Councils making use of the letter should check and/or delete the appropriate information required boxes and send the letter by fax. Retain the fax confirmation as evidence, in case the payment requestor claims in any court proceedings that they did not receive the request.
**Please note that the London Energy Project (LEP) has sought legal advice in the preparation of the standard letter. However, LEP is not responsible for the use or operation of the standard letter and accepts no liability arising out of such use or operation. Organisations should seek their own legal advice on the meaning and effect of the standard letter. If your legal department makes recommendations for changes or offers an alternative opinion, LEP would welcome feedback in order that we can update the standard letter if appropriate and provide the best possible support to our members.
If the payment request comes from a council's corporate utilities contract provider, in addition to sending the standard letter, you should also discuss the matter with your account manager and ask them to assist in dispute resolution.
You should be aware that utility companies sometimes refer to sites by a different name or postcode from the one used by you: this may relate to the meter location, rather than the site's postal address. If you believe that this may be the case, please check prior to sending the letter.
