Experts tell how to change payment “communal” after the reform.
On 9 November the Parliament adopted the law “On housing and communal services”, a history spanning almost two years. The bill was registered by Cabinet in December 2014, several times refined and only in the fall of 2017 took to the stage of consideration.
The document should radically change the principles for the provision of the whole complex of housing and communal services and directed on realization of the adopted in February 2015 the law “On peculiarities of implementation of the right of property in an apartment house.”
The law will enter into force after 6 months from the day following its publication except for individual provisions entered into force on 1 January 2019. That is, the current heating season will be held under the old rules, but starting from next summer season, LC services we will receive in accordance with new approaches.
That provides for reform?
The new law significantly changes the conceptual framework, as directed on legal regulation of the many nuances that are associated with the shift from Housing to condominiums (the society of apartment owners) or Manager (private entrepreneur or company, including the old office).
The residents of apartment buildings to choose there are 3 ways of organizing the management of their home: an individual contract with the company-monopoly (water, heat, or power companies) on the provision of services for individual apartments, collective agreement with the suppliers will enter into a condominium and then, on behalf of each apartment with a monopoly will be to enter into a contract the authorised person — managing an apartment building. If condominiums and home owners do not show initiative hiring Manager, it is the appropriate treatment of co-owners on a competitive basis, administered by local authorities.
“Pitfalls lie in the lack of competition in the market because of the riskiness of the business for companies and Directors. In addition, homes for which the residents are not created ajoah not chose managing self, managing to be appointed by the city authorities, with the presence of corruption and discrepancy of price and quality of provided services”, – says the lawyer of corporate Practice, JSC Juscutum Maria Failmezger.
Also, the law prescribed rules for the Manager of an apartment house, the standard contract (must be approved by the Cabinet) with a separation rate indicating the amount of payment for communal services and fees for management services, the provisions, standards of professional certification. in addition, students are responsible for the lack of services or poor quality provision, and requirements for the quality of public services should be spelled out in the contract.
The law stipulates mandatory services Manager which will be approved by the standard contract by the Cabinet, and additional. To include mandatory services: cleaning of territory and premises, Elevator maintenance, purchase of electricity for the operation of the common property of the house, maintenance of the General property of an apartment house.
“The Manager will be effective only when will feel the control of the inhabitants and will be appointed by the people themselves, not forcibly chosen body of local self-government”, – said Roman Kobets, attorney, lawyer PG “Poberezhnyuk & partners”.
The new law changes the procedure of concluding consumer contracts to receive the whole complex of the LCD services: management services, water supply, waste management, gas, electricity. Displayed in a separate service dealing with solid waste.
Under the new law, consumers of services responsible for all losses of water and heat in the house. The question of evaluation of efficiency of resource use in non-residential premises in the building (shops, offices, etc.). But in any case, all losses will be evenly distributed among all tenants.
There are other obligations for the consumers: they will have to promptly report all of their counters in the manner prescribed in the contract (and the Internet), and also to allow the service provider not only in common areas but also in places where there are counters. That is, the number of responsibilities of consumers has increased significantly, in contrast to the liability of providers.
The apartment owners are allowed to disconnect from the network of Central heating and hot water supply, if at the time of entry into force of the law more than half of the apartments in the house already disconnected from the network.
In addition, the law provides for the monetization of subsidies for housing and communal services. That is, the consumer who has a grant, you may receive “live” money to pay for LCD services and not a discount on them. This will allow the owners of the houses freely dispose of the funds and to encourage economical use of resources and implementation of energy efficiency measures. The procedure for the payment of such subsidies should also approve the Cabinet.
Careful, fine!
Another important innovation in the law was to establish the financial responsibility of consumers to pay for public services. Now, in case of violation of the payment term, the customer shall pay a penalty of 0.01% of the outstanding amount for each day of delay (from the first working day following the last day of the deadline for payment for housing and communal services – i.e. from the 21st of the month), but not more than 100% of the total debt. Such rules come into force from 1 January 2019, and retroactivity, they have not.
Penalty is rather a formal measure aimed at improving the awareness and payment discipline of the consumers of public services, not a “financial stranglehold”. If the debt is UAH 1000, the penalty per day is only 10 cents. That is, the maximum amount of fines will amount to 3.65% of the outstanding amount.
From the payment of interest shall be exempt only consumers to whom a debt of the state on compensation of privileges and subsidies, as well as persons who withhold wages. These facts need to be proved by documents.
“Despite the limited list of exceptions, the possibility of exemption from the payment of interest in practice is much more complicated. So, in the event of unforeseen costs, such as treatment, the consumer will still be forced to compensate a penalty. Also it is difficult to imagine the feasibility of collecting reference on the detention of wages, especially from private enterprises, who thus will say in their activities, labor law violations,” – said Roman Kobets.
According to him, the collective form of the contracts has significant risks. So, if on behalf of joint owners the contract was concluded a collective consumer, the requirement to pay default interest may be charged for such a Union. As a consequence, the duty one participant enterprises will actually be repaid at the expense of other participants. In this case, the risks of further foreclosure by the Association of debt with unfair payer will rely solely on the participants. In addition, in the case of default on the debt more than 30 days, all owners can expect the termination of services. “To prove its truth at the wrong charging interest to debtors are likely to have in court,” adds Maria Failmezger.
Will have to pay all year round, and it is unclear why
The law establishes a mandatory fee for the subscription service (it includes service counters, a fee for the distribution of services and collection of funds from subscribers) for the supply of hot and cold water and heating.
“Fee — it is now one of the forms of payment for heat and water. Remember the scandal, both from a license fee six months ago, “repudiated” the President together with the Prime Minister, they say, is anti-social norm,” recalls the President of the Ukrainian analytical center Alexander Okhrimenko.
That is, the water will have to pay, regardless of the fact and amount of use, and heating – not only in the heating season and throughout the year. This situation will lead to the fact that those who use little water, are to overpay. At the same time the size of the payment for water and heating should be reduced by the amount of license fee.
Important: this rule relates solely to individual consumers (the building owner or the one who uses it) who enter into a direct contract with the supplier.
In case of conclusion of collective agreements (such as HOAs) subscriber fee is not charged. Where there are condominiums, providers have the right to enter the individual margins or services, for example, subscription fee or individual fees for service counters. Funds from the license fee should be directed to the maintenance and repair of existing infrastructure water and heat supply.
“The specific amount of the license fee will be determined by the provider and the consumer directly to the individual contract, and its maximum size will be set by the Cabinet (within six months after the law came into force),” – said Roman Kobets.
Moreover, in the supply of individual contracts introduced charges for the maintenance and repair of intrahouse networks (from the entrance of the house to the apartment). Its size also need to install the Cabinet.
Introduction of a license fee is a gentle “hint” to the residents of buildings that have not yet established condominiums. It is no secret that not all the residents of apartment buildings (especially in old housing stock) are set to unity. But the introduction of license fee should “motivate” dissent to the consolidation and the conclusion of collective agreements.
The law contains one more unpleasant for the individual subscribers innovation: the area of responsibility of the service provider will end at the entrance to the house. That is, if there are problems with in-house communications (e.g., burst pipe), the financing of repairs and consequences will be considered a problem by residents. To avoid this, there is a charge for the maintenance and repair of intrahouse networks.
Debtors will disable
One of the most dangerous for consumers, the rules contained in paragraph 5 of article 8 of the law, where the rights and duties of performers of communal services and control States: “to Terminate/suspend the provision of public services in the event of non-payment or payment in full in the manner and terms established by law and the contract, except in cases when the quality and/or quantity of such services do not conform to contract”.
In the absence of specific procedures for disabling of the debtors, in practice, there is a space for maneuver, and it is not clear how providers will exercise their right to disable consumers from services. In the Ukrainian judicial system, perhaps a lot of options…
Will the rates increase? (it will be)
Although Cabinet to assure that the reason for growth of tariffs for communal services yet, but believe that the increase will not be – it would be a mistake. In the consensus forecast published by the Ministry of economic development, stated that the tariffs for gas in 2018 could rise to 19%, and the cost of heating, electricity and hot water will grow by 20%.
According to experts, the reasons for the increase in the cost of housing and communal services with the adoption of the new law exist. “There is a risk that the cost of housing services will increase due to various additional charges like license fee or additional load for non-residential premises”, – says Alexander Okhrimenko.
As said Roman Kobets, the government will not regulate prices for services related to the management of the house. Prices will be determined by consumers and managers at the stage of Contracting. The contract will include the costs of the management and remuneration of the Manager. Since managers are the entities in the payment of their services definitely will include costs of labor, taxes, organizational expenses and the payment that the Manager will carry out at the conclusion of the contract of insurance of their liability. Whether it is above or below the established while local authorities will depend on agreement with the Manager and the wishes of the owners. It cost these costs can only be determined after Cabinet approval limits.
According to him, the prices for services of heating, water, etc., remain regulated by the state. To consumers on individual contracts will be charged a fee for subscription services. Despite all the components, it is unlikely that the total cost of housing and communal services will decrease.
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