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Ministry of Justice Responds to Energy Club Regarding Protected Current Payment Channel for District Heating Companies

27.07.2026

Energy Club has received a response from the Ministry of Justice of Ukraine regarding the Club’s appeal to prevent the spillover of the payment crisis in the district heating sector into the electricity market.

The appeal was prepared following expert discussions hosted by Energy Club and was forwarded to public authorities, the regulator, relevant ministries, NPC Ukrenergo, SE “Ukrainterenergo”, Naftogaz Group, and other involved stakeholders.

One of Energy Club’s key proposals was the establishment of a protected current payment channel for district heating companies (DHCs). This mechanism is designed to guarantee payments for current electricity consumption, distribution, and transmission services without mixing these payments with historical DHC debts for natural gas.

In its response, the Ministry of Justice confirmed that it had reviewed Energy Club’s appeal, specifically regarding the creation of such a protected current payment channel.

The Ministry drew attention to the fact that the enforcement procedure for court decisions is governed by the Law of Ukraine “On Enforcement Proceedings,” with foreclosure on the debtor’s funds and other property being one of the enforcement measures.

At the same time, the response noted that the legislation already provides for specific exceptions regarding funds that cannot be subjected to foreclosure. In particular, this applies to funds in accounts with a special regime of use and other accounts where foreclosure is prohibited by law.

The Ministry of Justice also emphasized that upon receiving an enforcement officer’s order to seize funds held in such accounts, the bank or other relevant institution is obliged to return the order unexecuted regarding the seizure of these funds, stating the reason for return.

Furthermore, the response highlights that the enforcement officer is required to lift the seizure of funds upon receiving documentary confirmation that the debtor’s account has a special regime of use or that foreclosure on such funds is prohibited by law.

Thus, the Ministry’s response effectively confirms that creating an effective protected current payment channel requires a clear regulatory framework governing the status of relevant accounts and prohibiting foreclosure on funds designated specifically for current electricity consumption, distribution, and transmission.

The Ministry also noted that current accounts with a special regime of use are opened in cases provided for by the Laws of Ukraine or acts of the Cabinet of Ministers of Ukraine. Should draft regulatory acts aimed at resolving this issue be submitted, the Ministry of Justice expressed its readiness to participate in their review in accordance with the Rules of Procedure of the Cabinet of Ministers of Ukraine.

Energy Club considers this response an important milestone for the further development of a stabilization mechanism for settlements in the electricity market.

“The Ministry of Justice’s response confirms that the issue of a protected current payment channel cannot be resolved solely at the level of agreements between individual market participants,” noted Andrii Kostrytsia, President of Energy Club. “It requires a regulatory solution that clearly defines the special regime for accounts, the designated use of funds, and the protection of current payments from seizure or redirection to service historical debts. It is precisely this approach that can prevent the DHC debt crisis from spreading into the electricity market.”

Energy Club emphasizes that the proposed approach does not exempt DHC enterprises from fulfilling their obligations or ignoring historical debt. The objective is to separate current electricity payments from historical debts to ensure the uninterrupted operation of critical infrastructure, payment for ongoing consumption, and stability across the electricity market.

Energy Club will continue its dialogue with public authorities, the regulator, market participants, district heating enterprises, electricity suppliers, and other stakeholders to find a practical and balanced solution.

The anticipated outcome of these efforts is to prevent the formation of a new debt chain in the electricity market and establish a transparent mechanism for current settlements that respects the interests of all legal entities involved.

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