Hiba Mahamadi 04 December 2019

Councils could lose millions in utilities repayments after court ruling

Local authorities could be facing repayments worth millions of pounds to council tenants in excess water charges, after a High Court ruling last week.

The court found Kingston upon Thames RLBC unlawfully over-charged a council tenant for water between 2003 and 2017.

During this period, the authority collected payments for water and sewerage services from its tenants for Thames Water Utilities. But the water company had offered the council a discount on the overall bill payable: 3.5% off the total charges, plus 9.3% off the remaining sum payable. This meant Kingston was paying a reduced sum of money for water bills over this period. 

The tenant, Derek Moss, argued this discount was not reflected in the council’s water bill to tenants. He added the council should only charge him for the water he used as per his tenancy agreement and return the discounted sum. 

The High Court ruled in favour of Mr Moss, noting he has the right to be reimbursed for the extra money paid to the council over the years.

Mr Justice Morgan wrote: “Mr Moss has a right to recover overpayments of charges pursuant to section 150(5) of the 1991 Act and paragraph 10(1) of the Water Resale Order 2006…

“Mr Moss has overpaid the charges which were due under the revised terms of his tenancy agreement”.

The judgement comes after a similar resolution against Southwark LBC in 2016, in which the council was held liable to repay a tenant for excess water charges.

Southwark calculated its tenants had made overpayments worth £28.6m.

The law firm, Deighton Pierce Glynn (DPG), that represented the tenants against Kingston RLBC and Southwark LBC, has said the ruling could see many more council tenants make claims for extra water charges.

A DPG statement read: 'The impact of today’s result could be felt in millions of pounds of refunds to council tenants in Kingston and many other local authority areas.'

DPG solicitor Daniel Carey added the ruling reiterated local authorities’ duty to pass on any discounts negotiated with water companies to tenants.

A spokesman for Kingston upon Thames RLBC said: 'We are considering the outcome with our legal representatives.'

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place

Hounslow London Borough Council
£159,840 - £186,282
We are now seeking a new Executive Director of Inclusive Growth & Place to lead this bold agenda Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Revenue Services Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£28377 - 36969 per annum
We have a vacancy in our Rent Collection Service and are looking for a capable and ambitious individual to join Richmond and Wandsworth Council’s Better Service Partnership. You will be a team player, articulate and organised and help play a central rol Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Benefits Assessment Officer

West Northamptonshire Council
£34203 - £37067
Join West Northamptonshire Council and help make our community a great place to live, work, and thrive. As a Benefit Assessment Officer, you’ll play a vital role in supporting residents by ensuring Housing Benefit and Council Tax Reduction claims are pr Northampton
Recuriter: West Northamptonshire Council

Head of Facilities Management

Redbridge London Borough Council
£89,037 - £92,538
Our borough is beginning a huge transformation. With ambitious regeneration plans, a need for new infrastructure, Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Protection, Licensing and Regulatory Services

Redbridge London Borough Council
£competitive
This is your chance to be part of a new management team with a mandate for change and a shared sense of purpose. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner