The government has required heating companies to allocate 5% of their funds to electricity
The Cabinet of Ministers has approved a new procedure for allocating funds to heat-generating and heat-supply companies. From now on, at least 5% of their revenue must be allocated to paying for electricity and repaying related debts.
First Deputy Prime Minister and Minister of Energy of Ukraine Denys Shmyhal announced the government’s decision. Under the new rules, funds from heat-generating and heat-supply companies will be allocated according to a specified ratio. The bulk of the funds—60%—must go toward paying for natural gas.
Another 5% will be used to pay off debts for electricity and related services. The remaining 35% will remain at the disposal of the companies themselves. They will be able to use these funds for current payments and other necessary expenses. Thus, companies will not be able to allocate all the funds they receive solely to pay for gas, leaving their electricity debts unpaid.
Why Did the Government Change the Rules?
According to Shmyhal, the decision is intended to help reduce the debts of heat supply companies to energy market participants. Specifically, this refers to debts owed to the “last-resort” supplier, the transmission system operator, and distribution system operators. “This is one of the steps toward stabilizing the energy market and reducing the debts of such companies to the ‘last-resort’ supplier, the transmission system operator, and distribution system operators,” Shmyhal wrote.
The government has also established a mechanism under which funds will be distributed among electricity market participants based on the amount of debt. In other words, funds are to be distributed not arbitrarily, but based on how much each enterprise owes to each market participant.
What This Is Expected to Change
The Cabinet of Ministers expects that the new procedure will make payments more stable and predictable. For energy companies, this should mean more regular payments for electricity consumed. For heat supply companies, it means clearer rules for using the funds received.
“This will ensure stable and predictable payments, reduce the level of debt, improve financial discipline among companies, and enhance the financial condition of electricity market participants as they prepare for the fall-winter period,” Shmyhal noted.
The decision was adopted ahead of the heating season
The changes are being implemented on the eve of the new fall-winter period. This is a critical time for heat supply companies, as demand for gas and electricity rises during this period. At the same time, companies need to prepare their heating networks and equipment for winter operation, pay for energy resources, and settle accumulated debts.
The new procedure is intended to prevent situations where a company receives funds but fails to pay for electricity as required. The government expects that, thanks to the fixed payment ratio, debts owed to energy companies will gradually decrease. At the same time, 35% of the funds will remain with the companies to ensure their day-to-day operations. Shmyhal wrote about this on Telegram.
The Cabinet of Ministers has allocated 67.6 billion UAH to implement regional and urban resilience plans. Of this amount, 43.7 billion UAH is earmarked for the engineering protection of critical infrastructure facilities, particularly in the energy sector.
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