Kyivteploenergo files over 11,000 lawsuits against debtors

Kyivteploenergo, the municipal heating utility, has filed more than 11,000 lawsuits against customers for systemic non-payment and the accumulation of record debts for heating and hot water.

"Kyivteploenergo has been forced to resort to tough measures against debtors who neglect their obligations as consumers, fail to pay for services rendered, and ignore options for peaceful settlement," said Inna Kuchuk, head of legal support for sales at the company's Energy Sales division, during a briefing at the Kyivinform press center on Monday.

She explained that the law allows the company to sue either the owner of an apartment or the person registered at the property. Debt collection will be carried out through enforcement.

"This is a tough but the only effective method for dealing with such violators. On top of the principal debt, a penalty of 0.01% of the overdue amount is charged. In addition, 3% annual interest and inflation indexation are applied to the debt. Court fees and all legal expenses are also imposed on the debtor," Kuchuk said.

If collection is handled by the enforcement service, a 10% enforcement fee is added to these charges. As a result, a consumer is forced to repay not only the debt but about 25% more in penalties and court-related expenses.

Kuchuk also explained how debtors are notified of lawsuits.

"Debtors may be informed in several ways: by receiving a hard-copy lawsuit via Ukrposhta at their registered address, through the Diia app, or via the electronic court system, where they can also participate in hearings online," she said.

She added that legislation provides options for participation in proceedings even for those abroad.

Kyivteploenergo shared examples of debts settled through court rulings or enforcement service.

For instance, the owner of an apartment at 18-A Mykhailivska Street in Shevchenkivsky District owed UAH 143,000 for heating from 2018 to 2021. The court ordered repayment, but the ruling was ignored. The enforcement service subsequently froze the client's property and bank accounts, and the debt was collected forcibly. Including fees, the debtor overpaid by 25% (UAH 36,000).

Kyivteploenergo stressed that restructuring debt is a way to avoid lawsuits and penalties.

"This mechanism is optimal for those unable to pay the entire debt at once. A restructuring agreement can be signed at any service center or remotely via the Utility Service Center, using a digital signature," the company said.

As reported, since the end of the last heating season, Kyiv residents' debt for heating and hot water has fallen just 7% to UAH 6.5 billion, including UAH 3.7 billion for heating alone. Around 150,000 Kyivteploenergo customers are systemic debtors.