New Law on Heating Stations Sparks Fears of Rising Utility Bills in Ukraine

Legal Mandate for Individual Heating Points Draws Criticism

According to ХВИЛЯ: Ukraine's parliament has passed legislation requiring the installation of individual heating points (ITPs) in apartment buildings. Oleg Popenko, head of the Union of Consumers of Utility Services, has analyzed the initiative and voiced strong objections to its implementation model, which places control of ITPs in the hands of monopoly heat supply companies (teplokommunenergo). Popenko argues these firms have no incentive to promote energy savings, leading to questionable financial arrangements.

Concerns Over Execution and Costs

Under draft law No. 14067, the installation and maintenance of ITPs will be assigned to local heat utilities. This has raised alarms, as Popenko points out that in Kyiv, after ITPs were transferred to Kyivteploenergo, maintenance stopped entirely.

'If you don't service it, it will operate in whatever way benefits the heat utility,' he warns.

A key provision of the new law allows the cost of installing ITPs to be incorporated into heating tariffs. Popenko asserts that

'in practice, people will get an ITP but immediately face high heating costs.'

He argues that consumers will end up 'paying a high tariff for the promise of savings,' calling the approach 'so foolish-to implement such a project in this manner.'

According to analysis, installing ITPs can reduce heating expenses by 20–50%. For instance, without a meter or ITP, heating costs run 40–50 hryvnias per square meter; with an ITP, that drops to 20–25 hryvnias. Popenko notes that 'the core benefit of ITPs is saving 20 to 50%.'

Drawing a contrast, he highlights Poland's approach, where property management companies install ITPs using grants or loans.

'In Poland, residents repay the cost solely from the savings they achieve,' he explains, underscoring the difference in energy efficiency strategies between Ukraine and Poland.

Overall, the new ITP legislation raises serious questions about its execution and its impact on consumers.

The rollout of these legal changes regarding individual heating points in Ukraine could significantly affect the energy sector and household finances. However, criticism from experts and consumers points to a need to revise the implementation and oversight mechanisms for ITP maintenance to prevent problems similar to those seen in Kyiv. The comparison with Poland also suggests potential for more effective energy efficiency solutions in Ukraine.