Debt restructuring for utilities
The catastrophic amounts of debt of the population for consumed utilities are one of those difficult issues that need to be addressed in the field of housing and communal services. After all, it directly affects the ability of the enterprises of the industry to function, to provide them with high-quality vital services.
New Bill
On 06/05/2020, in the Verkhovna Rada of Ukraine, people’s deputies registered a draft Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding Improving the Procedure for Repaying Consumer Debts for Payment for Housing and Communal Services”, which aroused great interest among the community.
The purpose of introducing this bill is to solve the problem of paying off the population’s debt for consumed housing and communal services, to regulate the relationship between consumers and providers of housing and communal services, and to stabilize the financial condition of enterprises in the industry by reducing their receivables.
Debts create unequal conditions for participants in the market of housing and communal services and increase social tension in society, in particular between consumers who honestly and timely pay for services and those who neglect their payment debt.
Required restructuring
The bill provides for the mandatory restructuring of consumer debt for housing and communal services, established as of October 1, 2020, in the amount determined by the Cabinet of Ministers for types of housing and communal services, by installment payment for up to 60 months, depending on the amount of debt and the level of income of citizens on the date restructuring.
At the same time, the debt should not exceed 25% of income for subsidies and 20% for pensioners and other persons receiving any type of social assistance. Consumers who have entered into a debt restructuring agreement are subject to the current procedure for calculating subsidies for housing and communal services to pay current payments.
Certain time limits are also introduced for debtors to pay for housing and communal services. In particular, by a court decision, the right to travel outside Ukraine, drive vehicles, use weapons, and hunt may be restricted.
In case of failure to conclude an agreement on restructuring and non-payment of current payments, the debt formed as of 10/01/2020 is collected by court decision. The measures that can be applied to the debtor are determined by the Law of Ukraine “On Enforcement Proceedings”.
