Penalty, fines, or court: what awaits utility debtors during wartime

In today’s realities, many Ukrainians face financial difficulties, making utility debt during the war a widespread issue. In this article, we will examine the potential consequences of non-payment for utility services and what to pay attention to in order to avoid problems.

Do you have to pay utility debts during martial law?

The question of whether utilities must be paid during the war concerns many people. It is important to understand: utility services remain paid, and the obligation to pay for them is предусмотрена in the contract with the service provider. The state has introduced certain relief measures during martial law. However, this does not mean that the debt is canceled or disappears. Charges continue to accrue, and задолженность may increase even if the property is temporarily not in use.

Are penalties charged for utility debts during the war in Ukraine?

Since the beginning of martial law, начисление penalties for overdue utility payments was prohibited. This helped citizens who left their homes or faced financial hardship. However, starting from January 2024, the moratorium on penalties was lifted. Therefore, penalties on utility debts became applicable again in 2024. Charges are applied in accordance with the service agreement, and the debt continues to grow even if residents are temporarily absent.

Is it allowed to charge penalties after the moratorium was lifted in 2024?

Since the beginning of martial law in Ukraine, a moratorium on penalties for utility debts had been in place, protecting citizens from late payment charges. As of January 2024, the moratorium was lifted, and utility providers regained the right to charge penalties for задолженность in accordance with existing contracts. It is important to monitor your bills and, whenever possible, pay for utility services on time.

What is the penalty rate for late payment of utility services?

If a property owner fails to pay bills on time, the service provider has the right to charge a penalty. Under current legislation, the penalty may not exceed 0.01% of the total debt for each day of delay. This rule applies regardless of whether the person resides in the property or is temporarily absent. It is important to understand that the penalty accrues daily and gradually increases the total amount of debt.

Can fines and inflation adjustments be charged on utility debt?

In addition to penalties, according to the terms of the contract, service providers may apply other measures, such as fines or начисления adjusted for inflation. This means that delayed payments may lead to additional financial charges, taking into account the changing value of money.

Where do restrictions on penalties and fines still apply during the war?

The prohibition on начисление penalties and fines remains in force only for temporarily occupied territories and active combat zones. These include certain areas of the Donetsk and Luhansk regions, parts of the Zaporizhzhia and Kherson regions, as well as Crimea and Sevastopol, which remain under occupation. Even if the property is not in use, the debt does not result in penalties or fines until the end of martial law in these areas. For other regions of Ukraine, standard rules apply: service providers are allowed to charge penalties and fines according to contract terms, and utility debt may continue to accumulate.

Can utility services be disconnected for debts during martial law?

According to Resolution of the Cabinet of Ministers of Ukraine No. 206 dated March 5, 2022, “On certain issues of payment for housing and utility services during martial law,” disconnection of housing from gas, electricity, water, heating, and other utility services due to unpaid bills is prohibited until the end of martial law. This means that service providers do not have the right to cut off utilities because of a consumer’s debt. However, the задолженность continues to be recorded and accumulated.

Can a utility provider take you to court for unpaid bills?

Service providers have the right to apply to court to recover outstanding debts if the consumer does not pay voluntarily. In such cases, legal proceedings may be initiated to officially confirm the debt and oblige the debtor to repay it. The law also provides the option to enter into a debt restructuring agreement for utility payments. This allows the debt to be divided into installments and repaid gradually without additional penalties, helping to avoid a sharp increase in debt and maintain access to essential services.

What legal costs must a debtor pay in utility debt cases?

When utility debt is recovered through court, the debtor is required to pay not only the principal amount, penalties, and fines, but also court fees and other expenses deemed necessary by the court. These may include legal services, document preparation, expert evaluations, and other costs incurred by the claimant in protecting their interests. As a result, unpaid utility bills can become significantly more expensive due to the accumulation of both the debt itself and legal costs.

What happens after a court decision on utility debt recovery?

Once the court issues a decision to recover utility debt, the service provider can обратиться to a state or private enforcement officer for compulsory execution. Within this procedure, the enforcement service collects from the debtor not only the utility debt, penalties, and fines, but also an additional 10% enforcement fee. A state enforcement officer has the authority to seize bank accounts, block payment cards, and withdraw funds until the debt is fully repaid. If there are insufficient funds in the accounts, recovery may be carried out through the debtor’s salary or other sources of income.

Can bank accounts and cards be frozen due to utility debts?

If a debt remains unpaid after a court decision, bank accounts may indeed be frozen due to utility arrears. A state or private enforcement officer has the right to block bank cards and freeze funds in the debtor’s accounts until the debt is fully repaid. Such measures are applied only after a lawful court decision has been issued and the service provider has обратиться to the enforcement service.

Can an apartment or property be seized for utility debts?

Many people wonder whether an apartment can be taken away due to utility debts. In practice, such cases are extremely rare. The law предусматривает that the debt must be proportionate to the value of the недвижимого имущества. If the utility debt is insignificant compared to the market value of the apartment or house, courts typically do not apply enforcement measures such as property seizure. However, in rare cases where the debt approaches the value of the property, the risk of seizure increases.

Do you have to pay for utilities if the housing was damaged by shelling?

According to the Law of Ukraine “On Housing and Communal Services,” charges are applied only for services that were actually provided. If the housing was damaged or destroyed due to hostilities and utilities (water, gas, electricity, heating) were not supplied, the consumer is not obligated to pay for those services during that period. To confirm the absence of services, the property owner must document the damage and notify the service provider. This helps avoid начисление debt for periods when services were not actually provided.

How can a lawyer help in case of utility debt?

If you have accumulated utility debt, consulting a lawyer can help you understand your rights and obligations and develop an effective strategy. The law firm “DE-JURE” offers assistance in negotiations with service providers. A company lawyer can assess the legality of accrued penalties and fines, explain the consequences of late payments, and help conclude a debt restructuring agreement.