Ukraine's Approach to Individual Heating Units Draws Expert Criticism
Energy and utilities expert Oleh Popenko has criticized Ukraine's method for implementing individual heating points (IHPs), contrasting it with the model used in Poland. He highlighted a legal conflict within Law No. 417, passed by the Verkhovna Rada, and a financial model he argues primarily benefits monopolistic suppliers while increasing the burden on consumers. This debate is central to Ukraine's broader efforts to modernize its Soviet-era energy infrastructure.
Under Law No. 417, a heat supply company's responsibility ends at the point where its network enters an apartment building. New initiatives, however, transfer the IHPs located inside the building to the ownership and management of these same heat suppliers. Experts are concerned this approach jeopardizes consumer interests by consolidating control with the providers.
A Contrast with the Polish Model
Oleh Popenko pointed out that in Poland, building management companies, not heat suppliers, are responsible for installing IHPs. Funding there is drawn from budgetary resources, grants, and external funds. Crucially, Polish residents pay for the installation only after they begin to see savings on their bills, a key difference from the Ukrainian practice.
'In Poland, people paid for IHP installation after the savings materialized. The mechanisms worked first. In Ukraine, it's the opposite—tariffs are raised to benefit the heat supply companies.' Oleh Popenko
Popenko also noted that in Ukraine, lawmakers are passing legislation that contradicts earlier laws. This creates additional difficulties for consumers, who are forced to pay upfront with no guarantee of tangible benefits from the IHPs. The expert believes more effective implementation models must be found that consider citizens' interests and ensure their economic benefit.
Oleh Popenko's statements underscore the need to review current legislation in the context of energy independence and consumer protection. In Ukraine, where energy security is critically important, a balance must be struck between supplier and consumer interests to ensure the effective rollout of individual heating points. Studying the experience of other countries, like Poland, could be a vital step in this direction.