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    On Amending Resolutions of the Cabinet of Ministers of Ukraine No. 127 of February 6, 2024 and No. 118 of January 30, 2026

    ### 1. Substance of the Resolution
    This regulatory legal act regulates the mechanism for recalculating the cost of thermal energy and hot water supply services to consumers in the event of emergencies, in particular as a result of hostilities. The document introduces a clear mathematical formula for reducing the fee for heat and hot water if the quality of these services has significantly deteriorated due to enemy shelling and destruction of infrastructure. In addition, the resolution allows local authorities to compensate utility companies for financial losses resulting from such recalculations at the expense of local budgets. The issue of accruing fines and penalties against service providers during the period of martial law is also regulated.

    ### 2. Structure of the Act, Main Provisions, and Amendments
    The resolution has a concise structure: it consists of three paragraphs of the enacting part and an annex containing direct amendments to two current government resolutions β€” No. 127 dated February 6, 2024, and No. 118 dated January 30, 2026.

    **Main changes compared to previous versions:**
    * **New special section:** The Procedure for Recalculation (Resolution No. 127) has been supplemented with a separate section on the specifics of calculations for heat and hot water during emergencies.
    * **Differentiation of recalculation:** Previously, a general procedure applied; now, the rules are clearly divided depending on the scale of the problem (deviation of parameters up to 30% and over 30%).
    * **Introduction of a formulaic calculation:** For cases of significant destruction of infrastructure due to the military aggression of the Russian Federation, a special formula with a fixed fee reduction coefficient has been introduced.
    * **Contractual priority of liability:** Amendments to Resolution No. 118 establish that during martial law, the liability of the service provider (fines, penalties) is determined exclusively by the terms of the contract, rather than by general mandatory rules.
    * **Retroactivity:** The resolution applies retroactively β€” from January 1, 2026.

    ### 3. Key Provisions for Practical Use
    For the practical work of lawyers, utility workers, and the protection of citizens’ rights, the following provisions are the most important:

    * **Formula for recalculation in case of quality deviation exceeding 30%:** If heat supply or hot water are provided with critical deviations due to missile, drone, or artillery attacks, the recalculation amount ($C_{26}$) is calculated using the formula:
    $$C_{26} = P_{26} \times \frac{d}{M} \times 0.8$$
    where the service fee ($P_{26}$) is adjusted by the proportional number of days of inadequate quality ($d$) in the billing month ($M$) using a mandatory reduction coefficient of $0.8$. The presence or absence of building-level meters does not matter in this case.
    * **Budgetary compensation for District Heating (TKE) enterprises:** Local self-government authorities have been granted the legal right to provide non-refundable compensation to heat supply enterprises from local budgets (in particular, from reserve funds) for the amounts of recalculations made to consumers. This allows the enterprises to maintain liquidity during the elimination of the consequences of shelling.
    * **Limitation of the service provider’s liability:** In the event of force majeure emergencies during the war, consumers may demand forfeiture (penalties, fines) from the provider only in such cases and in such amounts as are directly prescribed in their service agreement.

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