On 02 August 2017, a Law of Ukraine “On Commercial Heating and Water Accounting” (the “Law”) came into effect. It has been developed in accordance with the EU-Ukraine Association Agreement and Ukraine’s Sustainable Development Strategy “Ukraine - 2020”.

The Law is considered to be another step towards incentivising energy efficiency in Ukraine. The major novelties are as follows.

All buildings shall be equipped with heating and water accounting units at the expense of the owners of the buildings.  It is mandatory that newly constructed buildings have accounting units installed otherwise they may not be commissioned. It shall not be required to obtain technical conditions or any other permission documentation for the installation of accounting units.

Existing buildings connected to external networks shall be equipped with such accounting units by respective external networks operators within the following periods:

  • for the heating supply – for a period of 1 (one) year after the Law has come into effect; and
  • for the water supply – for a period of 1 (one) year after the Law has come into effect for non-residential buildings, and 2 (two) years after the Law has come into effect for residential buildings.

External networks operator shall be penalised for delays.

In addition, individual metering units shall also be installed for each flat in multi-flat buildings at the expense of its owners. It is expected that the Cabinet of Ministers of Ukraine shall further adopt the order determining the technical feasibility and economic viability of installing individual metering units. Regardless, installation of individual metering units shall be obligatory for the flats where the flat is connected to the heating system via a separate branch.

Consumers shall pay for the consumed utilities primarily based on the data from metering units, installed at the building and for each flat. Losses of heat and water, which happen frequently due to exhausted external networks, shall no longer be covered at the expense of consumers, as the data on total consumption by the building shall be taken from the respective accounting unit of such building. However, as a general rule, any difference between the actual consumption of the building, as according to the accounting unit of the building and the gross up of data from all individual units, shall be re-distributed and paid by all flat owners.

The consumers' bills shall be supplemented with information on recommended measures to enhance the energy efficiency of the building and information on the available state-support programmes to increase energy efficiency.

The Law also strengthens the liability of external network operators and consumers for violations in this field.

Legislation:

Law “On Commercial Heat and Water Accounting No. 2119-VIII dated 22 June 2017