Digital tools for effective and compliant management
As of January 1, 2020, the legislature has introduced a major change in the water sector, reducing from five to two years the limitation period within which utilities can demand payment of bills. This means that beyond that limit, the user is no longer legally required to pay and the claim is extinguished.
Monitoring of the two-year statute of limitations thus emerges as an essential activity to ensure compliance with this legislation. It entails monitoring the actions of water utilities, particularly with regard to timely and transparent communication of users’ rights regarding the statute of limitations, proper handling of the claims filed, compliance with current regulations, and verification that any actions interrupting the statute of limitations are only done through formal means, such as registered mail or PEC. Any informal reminders, in fact, are not sufficient to interrupt the running of the statute of limitations and could lead to the final extinction of the claim.
Responsibilities of operators: obligations and supervision
Under this legislation, water utilities are called upon to play a leading role in protecting users’ rights. They must ensure that information about the two-year statute of limitations is clearly displayed on bills, with a precise indication of the amounts subject to the statute of limitations and how to contest it. This information cannot be generic or relegated to footnotes: it must be easily identifiable and understandable.
In addition, operators must ensure timely and transparent handling of claims submitted by users. Unjustified rejections or attempts to circumvent the statute of limitations through automatic debits, for example, in the case of bank direct debits, are not acceptable. Compliance with ARERA resolutions and regulatory updates must also be ensured by always making available up-to-date information tools such as forms, online portals and official communications.
An additional obligation concerns the submission of data to the Regulatory Authority for Energy Networks and Environment(ARERA), including those related to prescription management. This enables effective monitoring of contractual service quality and contributes to more transparent and accountable governance.
The legal framework of the two-year statute of limitations
The reduction of the statute of limitations to two years was introduced by the 2018 Budget Law, with concrete effects starting January 1, 2020 for bills issued after that date. Earlier bills continue to be prescribed in five years, but later bills are subject to the new limit.
It is crucial to understand that the statute of limitations runs from the due date of the bill, and not from the time when consumption occurred. In addition, the operator is required to issue the invoice within 45 days after the end of the reporting period. Only from that time does the claim become due.
In compliance with regulatory obligations, utilities must highlight amounts referring to consumption prior to two years on the bill, including through separate documents if necessary. They must also make a form available to users to object to the statute of limitations and provide clear directions on how to submit it.
Finally, any attempt to interrupt the statute of limitations must be traceable and demonstrable, and thus take place through official channels. Generic communications or telephone reminders have no legal value.
It is important to know that any bill that has already been prescribed, if paid by the user, does not entitle the user to a refund: the payment is not repeatable.
What defaulting managers risk
Operators’ failure to comply with information requirements can have significant consequences, both economically and contractually. Users are entitled to receive automatic compensation in the event of inefficiencies, including failure to provide information on prescription or delay in service activation.
In addition to compensation, operators risk penalties stipulated in the service contracts signed with the entrusting entities. These penalties can take different forms: from fines to formal reprimands to the loss of scores in contractual performance evaluations.
In addition, the lack of transparency and communication can expose operators to litigation by users and action by regulators, such as ARERA and the Competition and Market Authority (AGCM), generating reputational damage that is difficult to recover.
Digital solutions to simplify regulatory compliance
In this scenario, water utilities need technology tools that can support structured regulatory management. CreditSuite ‘s Prescription Monitoring module meets this need perfectly.
It is a platform that enables the complete digitization of prescription-related activities, reducing manual operations and ensuring constant alignment with ARERA directives. Throughautomation, managers can monitor deadlines in real time, receive notifications about actions to be taken, easily integrate information with their business systems, and use interactive dashboards to view the status of activities.
One of the module’s most innovative features is predictive analytics, which enables early detection of any anomalies or critical issues in the data, avoiding errors and delays. In this way, the platform is transformed into not only an operational but also a strategic tool.
A strategic breakthrough for the water sector
CreditSuite enables water companies to address regulatory complexity with proactive management, reducing risk, improving efficiency, and strengthening user and stakeholder confidence. A solution designed to turn regulatory obligation into an opportunity for evolution.
