My husband and I have put timers on the computer programs repeatedly. Please be aware that our children are raised in an era of technology. You simply cannot shut them out. These kids ALWAYS find a way to beat you at your own game. They use other screen names for examples. They literally get a friend to lend them "one" of their screen names and passwords and they continue to play when you think you have shut them out.
I must say... timers are NOT an effective way what-so-ever. There is always a way around it.
If the grades are showing it... it has gone beyond "free time". It has become an addiction. I speak from personal experience, most definitely not as any type of physician. I have been dealing with this problem with my son for more than three years. If you have the strength, take the computer away. It is a very hard move to take but a move that just may honestly save your 16 year olds life in the long run. If he/she needs it for a report for school, put the computer in an open room where you can have visual contact at all times, let them complete the school project (with you knowing exactly what they are doing) and then once again, take the computer away.
Until someone comes up with a TRUE way to keep people off of WoW, there is no other way with the exception of finding help for the 16 year old child. I beg that you not let this continue. I wish no one the pain and suffering our family has been going through.
Just of note: When you look for help on the computer, you literally find one tiny spot of help and on the SAME page, you find 5-10 ways to download WoW onto your computer and how to get ahead, etc. It's actually quite sad.
Best of Luck to You and Your Strength to Hold Up - It's quite difficult to deal with.