Ukraine is preparing to revise the rules for disconnecting electricity for debtors. Now it will be easier to “cut the cables,” as consumers will no longer be granted a delay during court proceedings related to their outstanding bills.
Source: Obozrevatel
The corresponding amendment to the Retail Electricity Market Rules was adopted during a meeting of the National Energy and Utilities Regulatory Commission (NEURC) on August 5. The approved resolution removes the “postponement” of disconnection during potential court hearings over the termination of electricity supply.
Details
According to Oleh Popenko, Head of the Union of Utility Consumers, the change will allow companies to stop electricity supply to debtors regardless of whether a legal appeal has been filed, writes Minfin. The new rule could take full effect in two weeks, following a final vote — until then, the resolution remains under discussion.
Electricity can be disconnected in Ukraine for various violations — not just debt. These include unauthorized consumption, breach of contract terms, or denial of access to company representatives.
Previously, if a consumer contested a disconnection in court and presented the appropriate documentation, the power supply would remain until a court ruling. The court would ultimately decide whether to uphold or overturn the disconnection order.
However, the new NEURC resolution introduces an exception to paragraph 7.11 of Section 7 of the Retail Electricity Market Rules. The updated rule will continue to apply in all cases — except when debt for electricity is involved.
Possible Consequences
This means debtors can still take legal action over disputed bills — but with the power already shut off. And such court proceedings can take months. Even if the court rules in the consumer’s favor, they will face a complicated reconnection process.
According to Popenko, this effectively introduces a “presumption of debt validity.” He called the decision “highly controversial” and “shameful.”
Some analysts say the updated rules legalize a mechanism for disconnecting critical infrastructure. For instance, this could allow the disconnection of water utilities that have accumulated billions in debt — a situation partly caused by a moratorium since 2022 on raising water tariffs to economically justified levels. Against this backdrop, the Association of Ukrainian Cities has called on NEURC to ban electricity disconnections for water and sewer utilities.
The exact amount of household utility debt in Ukraine is currently classified. However, experts estimate the debt of water utilities at over 13 billion UAH, with the worst situation in front-line regions where many communities lack the funds to keep these services running.
As a result, a review of utility tariffs for the population in Ukraine cannot be ruled out. However, the National Bank recently stated in its inflation report that tariffs for electricity, gas, heating, and hot water will remain unchanged through the end of 2025.