The consumption of utility services is regulated by the law "On Housing and Utility Services." Despite the ongoing state of war, Ukrainians are still required to pay for these services.
Debtors who fail to make payments may be offered a debt restructuring option, allowing them to split their debt into manageable installments, typically over a period of up to five years.
If they do not cooperate, utility providers may initiate a court lawsuit for debt recovery. The court may then decide on one of the following actions:
Seizure of the debtor's property.
Freezing of bank accounts, potentially withholding up to 50% of pensions (if the balance exceeds the subsistence minimum).
Confiscation of real estate if the debt exceeds 160,000 hryvnias (equivalent to 20 minimum wages).
However, confiscation of housing is considered a last resort, typically applied only when the debt surpasses the specified threshold or when there are no other assets to settle the debt. Usually, only the debtor’s bank accounts are frozen, and their home is not seized.
Seizure or confiscation of housing is an exceptional measure, becoming more likely when the debt approaches the value of the property. For properties registered in the names of minors or individuals with disabilities, additional approval from guardianship authorities or a court decision is required before any seizure can take place.
During the state of war, utility payments remain mandatory. While fines and penalties have been suspended until the end of 2023, they will be reinstated in 2024.
Debtors may face sanctions, with a daily fine of up to 0.01% of the debt, although the total penalty cannot exceed 100% of the debt amount.
It is also important to note that debts incurred after February 24, 2022, in areas affected by military conflict or occupation, are exempt from forced collection, and utility services in these regions cannot be disconnected.