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Government helps pay delinquent utility bills

Posted by the Editor on January 13, 2014


News / 13 January 2014 | 12:45

Government helps pay delinquent utility bills

Government helps pay delinquent utility bills

The Cabinet has approved the draft Law of Ukraine “On amending Law of Ukraine “On restructuring debts for communal services, consumed gas and electricity”, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The draft law was initiated by the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine. Experts say the purpose of the bill is to solve the problem of delinquent utility bills. According to the ministry, as of Nov. 1, 2013, the population utility bill debts amounted to 11.6 billion UAH. That, in turn, brings about a late payment of utility bills by enterprises and results in salary arrears in the industry.
To ensure that the debt is not accrued and consumers could timely pay their utility bills, the draft law proposes to restructure delinquent bills that existed on Jan. 1, 2013, as an installment plan for a period of 60 months.
Experts explain that the proposed amendments envision continued restructuring of delinquent utility bills of the population. The Law “On restructuring debts for communal services, consumed gas and electricity” was passed on Feb. 20, 2003.
Analysts say practice has emonstrated its effectiveness. In fact, about 3.2 million families have concluded an agreement on debt restructuring for a total amount of 2.8 billion UAH since the law. As of May 1, 2013 the debts have been cleared for a total amount of 1.997 billion UAH.
Experts point out that the situation with utility bill payments has improved. From January to July 2013, Ukrainians have paid for utilities 24.3 billion UAH, or 106% of the amount due for this period. In fact, the average household utility bill based on the electricity consumption (150 kWh) at the end of July grew by 3% from last year and amounted to 242.7 UAH.

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