All Case Studies

Water Charge Refunds (October 2024)

Summary

A resident raised concerns about how we responded to a court ruling from 2016, which found that another housing provider had acted as a water reseller and overcharged tenants. The resident felt we:

• failed to notify them about the ruling and its potential impact
• did not widely promote our refund scheme or provide clear information
• applied a six-year statute of limitations on refunds, which reduced the amount they could claim

Poplar HARCA had previously collected water payments from residents, including a commission. Following the 2016 court ruling, we stopped adding commission and awaited the outcome of an appeal before taking further action. When the appeal was upheld in 2020, we introduced a refund scheme but only for payments made in the six years before a claim was submitted.

In 2021, the resident enquired about a refund and was initially told this was not something we were involved in. Later, we provided information on our website and confirmed that eligible residents could apply for a refund. In 2022, the resident submitted a claim and was offered £24.77. Dissatisfied, they escalated their complaint. We upheld our initial decision at stage 1 and advised the resident to seek independent legal advice.

Outcome

The Housing Ombudsman reviewed the case and determined it was outside their jurisdiction. They found that:

• the complaint related to water charges rather than tenancy matters
• refund eligibility and any potential breaches of the Water Resale Order would need to be determined by the courts

As a result, the Ombudsman could not investigate further.