New Law Mandates Individual Heating Substations
On July 15, Ukraine's Parliament passed Law No. 14067, requiring the installation of individual heating substations (IHS) in buildings connected to centralized heating systems. The cost of one IHS ranges from 650,000 to 800,000 hryvnias. These changes will take effect six months after the lifting of martial law. Local self-government bodies will decide on installation, and the payment for IHS will be included in the heat transportation tariff.
The legislation overhauls heating rules for Ukrainian apartments by making IHS mandatory in buildings with district heating. An IHS is a cabinet equipped with pumps and automation, installed in a building's basement. This device automatically adjusts heat output based on weather conditions, cutting heat consumption by 15-30%. Calculation methods and heat tariffs for the upcoming heating season will stay the same, and Ukraine maintains a moratorium on raising heat tariffs.
Co-Owners' Rights and Fairness Concerns
Building co-owners are given 60 days to install an IHS independently. If they miss this deadline, the right to install passes to the heating companies. The 800,000 hryvnia cost of an IHS will be distributed across residents' bills over several years. However, the law lacks specific provisions for pensioners, beneficiaries, or subsidies. Subsidies act as a safety net: the state sets a mandatory payment and covers the difference.
Fairness issues arise for buildings that have already installed IHS. Co-owners in such buildings, due to a shared tariff, will end up paying for neighbors who have not installed IHS. As the video authors note:
“Those who were thrifty will pay twice”. Additionally, a modern IHS requires an electrical connection—without a power outlet, it is 'dead'—raising concerns about dependency on the electricity grid. The law does not mandate backup power for IHS.
Regarding ownership, after paying off the cost through the tariff over 5-10 years, the monopoly provider will retain ownership of the IHS and will charge for its use and maintenance. Consequently, the new law has sparked debate among experts and residents about its feasibility and potential consequences.
The passage of the law on mandatory individual heating substations could significantly reshape Ukraine's heating system, aiming to reduce heating costs and boost energy efficiency. However, its implementation is contentious, as not all residents in buildings with existing IHS may be willing to shoulder extra costs for neighbors who fail to comply. This raises questions about the fairness of the financial burden on apartment owners.