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### 1. Substance of the Act
This Resolution of the Cabinet of Ministers of Ukraine regulates the mechanism for recalculating the cost of thermal energy and hot water supply services in the event of their non-provision or provision of inadequate quality due to emergencies of a military nature. The document introduces a clear formula for reducing charges to consumers if service parameters deviate from the standard by more than 30% as a result of infrastructure destruction due to shelling. In addition, local budgets are granted the right to compensate heat suppliers for the costs of such recalculations in order to support the financial stability of the enterprises. The Resolution also establishes that the liability of service providers for the quality of services during martial law is regulated directly by the terms of the contracts.
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### 2. Structure of the Act, Main Provisions, and Amendments
Structurally, the Resolution consists of three clauses of the main text and an annex containing amendments to two government resolutions: No. 127 dated February 6, 2024, and No. 118 dated January 30, 2026.
**Key changes compared to previous versions:**
* **New special section:** The Procedure for Recalculating the Cost of Utility Services (Resolution No. 127) has been supplemented with a separate section defining the specific rules for heat and hot water supply under wartime conditions.
* **Differentiation of recalculation:** Previously, a general procedure was in place; now, the rules are clearly differentiated. If the deviation of quality parameters is up to 30%, standard recalculation rules apply. If the deviation exceeds 30% and is caused by the armed aggression of the Russian Federation (missile and drone attacks, shelling), a new simplified formula is applied.
* **Contractual regulation of penalties:** Amendments to Resolution No. 118 establish that the liability of the service provider (fines, penalties, forfeits) for substandard services during martial law is determined exclusively by the terms of the contract between the consumer and the service provider.
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### 3. Key Provisions for Practical Application
For the practical application of this Act, the following provisions are key:
* **Recalculation formula for significant deviations (>30%):** The amount by which the consumer’s charge is reduced ($C_{26}$) is calculated using a formula where the base charge for the billing period ($P_{26}$) is multiplied by the number of days of inadequate service quality ($d$), divided by the total number of days in the month ($M$), and multiplied by a fixed charge reduction coefficient of **0.8**. This simplifies the mathematical calculation of the discount for the population in the event of prolonged service interruptions due to shelling.
* **Compensations from local budgets:** Local self-government authorities have been granted the legal right to compensate service providers from local budgets (in particular, from the reserve fund on a non-repayable basis) for the amounts of recalculations made to consumers. This allows for maintaining the liquidity of utility enterprises affected by shelling.
* **Retrospective effect:** The Resolution enters into force on the day of its publication but applies retroactively — **from January 1, 2026**. This means that all recalculations and compensations for the period from the beginning of the year must be carried out in accordance with the new rules.
