Ukrainians’ Debts for Utilities Surge by Almost One Third: Which Services Are They Owe Most For and What It Means for the Country’s Economy
As of the end of the second quarter of 2023, the overall debt owed by Ukrainian households for utility services has reached unprecedented levels, increasing by nearly one-third compared to the previous year.
The total unpaid bills for housing and communal services amount to more than 106.6 billion hryvnias, marking a significant rise from over 81 billion hryvnias reported at the end of 2021.
The largest portions of this debt stem from payments for thermal energy and hot water — 35.2 billion hryvnias, gas — 32.3 billion, electricity — 17.1 billion, as well as for cold water (10.2 billion hryvnias), management of multi-apartment buildings (8.8 billion hryvnias), and garbage removal (3.1 billion hryvnias).
These figures reflect the economic difficulties faced by many Ukrainian families who, due to ongoing financial challenges, are unable to pay on time for essential utility services.
Experts express concern that such debt accumulation could destabilize the housing and utilities sector, impacting the broader economy.
Notably, the State Statistics Service has published for the first time since the full-scale invasion data on household debts for utilities, providing clearer insight into the scope of the problem.
Authorities and energy companies are urged to implement balanced solutions, especially to support vulnerable segments of the population.
It is also worth mentioning that at the end of 2021, housing utility debts exceeded 81 billion hryvnias, and since then, the debt levels have substantially increased.
The government is planning to conduct its first population assessment after a lengthy hiatus, which will be crucial for shaping future social and economic policies to better address these issues.