A quick update:
The same day I wrote the above, I received a letter from Supanet threatening the use of a debt collection agency, however, a few days later (having registered with Otelo), Supanet cancelled their £170 demand and offered me a £20 refund. I have left it with Otelo and gratefully await their decision on the matter. Not once has Supanet offered a simple apology.
It is really annoying that these people use 'bully boy' tactics and intimidate innocent people with fear into paying money that is not genuinely owed.
For my own personal circumstances, I mostly regret the amount of wasted time I have been forced to spend on this situation to justify my stance. My Father is suffering with Bowel cancer, a possible secondary tumor, chemotherapy and my mother has major heart troubles. I regret being forced to waste so much time worrying and focused on this horrible company instead of things that should matter most and never again will I get into a long contract or agree to anything over the telephone (a months contract with fast4.net is plenty good enough for me).