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Debtor's rights protection Debt collection for utility services during the war

Kolesnyk Ilya

Attorney

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kolesnyk@prikhodko.com.ua

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Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions

Debt collection for utility services during the war

The start of a full-scale war in Ukraine radically changed the lives of citizens. The issue of paying for utilities took a backseat, especially in areas of active hostilities, where people were focused on survival and security.

However, thanks to the courage of the Ukrainian people, the enemy forces were expelled from many occupied territories. Those who left their homes are beginning to return. And along with the restoration of a more normal life, issues of a financial nature arise, including the payment of utility services.

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Calculation of utility payments during the war

The introduction of the legal regime of martial law in Ukraine does not lead to the automatic cancellation of utility bills for consumers. Despite military operations, in many cities utility workers continued to provide services, fulfilling their duties even during shelling. Current legislation does not provide for nationwide benefits or exemption from payment for housing and communal services in wartime. The only exceptions may be local decisions of local self-government bodies adopted at the level of individual cities, towns or districts. However, such preferences have a limited territorial nature and are established at the discretion of the municipal authorities.

Cases of non-payment

If the services were temporarily not provided, for example in occupied settlements, the fee for them should not be charged in accordance with the law. However, in practice this does not always happen without the intervention of authorities.

The payment situation for consumers whose housing is damaged or destroyed by the war is acute. The relevant draft law on exempting them from payments was registered in the Council, but it has not yet been adopted.

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Moratorium on debt collection

In May 2022, the Verkhovna Rada adopted a law on a moratorium on the forced collection of debts from individuals for utility bills during the war. However, it has not yet entered into force. This moratorium applies only to the last stage – executive actions of state officials (arrests, write-off of funds, etc.). Other stages of collection, such as: accrual of debt, appeal to court, court decision on collection of debt, opening of enforcement proceedings – may take place.

If the executor violates the moratorium, his actions can be appealed to the head of the executive service or in court.

Importantly! The appeal period is only 10 days.

Prohibition of fines and benefits for certain categories

The government also banned the charging of fines and interest on utility debts incurred during the war. And the debt in the areas of hostilities or occupation will not be collected from those who confirm that they have left the residence. If the housing is destroyed, no payments will be made at all.

At the same time, utility companies are obliged to inform consumers free of charge about tariffs, the cost of services and the terms of their provision.

Legal assistance

Given the complexity of the situation, in cases of violation of the rights of consumers of communal services, contact the specialists of the company “Prykhodko and Partners” for legal assistance. The company’s lawyers have considerable experience in matters of debt and provide qualified consultations, represent clients’ interests in court and help challenge illegal actions of executors or other authorities.