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A draft law aimed at strengthening payment discipline in the waste management sector has been adopted

At a recent session of the Legislative Chamber of the Oliy Majlis, the draft law “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Strengthening Payment Discipline in the Sphere of Waste Collection and Disposal Services” was reviewed and adopted in its first reading.

Background Information: The draft law, developed by the Ministry of Environmental Protection and Climate Change to enhance payment discipline for household waste collection and disposal services, seeks to implement Clause 4 of the Presidential Decree of the Republic of Uzbekistan No. UP-4, titled “On Measures to Improve the Waste Management System and Reduce Its Negative Impact on the Environment.”

In accordance with the draft, amendments will be introduced into the laws “On Consumer Protection,” “On Competition,” and “On Electricity,” providing mechanisms to collect waste disposal fees together with electricity payments.

Specifically:
• The law “On Consumer Protection” introduces the practice of temporarily restricting the acceptance of electricity payments in cases of non-payment for waste collection and disposal services.
• According to the law “On Electricity,” sanitation companies, in cooperation with electricity suppliers, will notify subscribers via SMS about outstanding debts for monthly waste disposal services and electricity usage, as well as the necessity to pay these dues on time. If the debt remains unpaid after notifying the consumer, temporary restrictions on accepting electricity payments will be imposed until the debt is settled.

Current Challenges: Currently, there are numerous instances of delays or non-payment by the population for waste collection and disposal services, resulting in an annual increase in accounts receivable, which now amounts to 615.6 billion UZS. Under the new regulations, if citizens fail to clear their debt for sanitation services even after receiving a special warning, they will be unable to pay for electricity until the outstanding balance is settled.

Phased Implementation Timeline (Presidential Decree No. UP-5, January 4, 2024):
1. Phase 1: From January 1, 2024 – Implementation in Tashkent, Nukus, and regional administrative centers for debts exceeding six months.
2. Phase 2: From August 1, 2024 – Extension to all regions of the republic for debts exceeding three months.
3. Phase 3: From January 1, 2025 – Enforcement for any monthly debt.

Additional Provisions: The law mandates the integration of GPS-equipped vehicles of sanitation enterprises into the “Toza Makon-Billing” platform. Payments by residents of a given area will only be accounted for if the system uploads GPS-based photographs proving that sanitation vehicles entered the relevant territory and performed the cleaning services. For instance, if the sanitation schedule stipulates eight visits per month, payments will be calculated based on the actual number of completed visits. If visits are not made as per the schedule, and no photographic evidence of entry and cleaning is uploaded, the system will not calculate payments.

The main objective of the law is to ensure fairness and consistency in the payment for sanitation services provided to the population. Additionally, it aims to improve payment discipline and implement a mechanism for mandatory collection of household waste fees along with electricity bills.
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A draft law aimed at strengthening payment discipline in the waste management sector has been adopted

At a recent session of the Legislative Chamber of the Oliy Majlis, the draft law “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Strengthening Payment Discipline in the Sphere of Waste Collection and Disposal Services” was reviewed and adopted in its first reading.

Background Information: The draft law, developed by the Ministry of Environmental Protection and Climate Change to enhance payment discipline for household waste collection and disposal services, seeks to implement Clause 4 of the Presidential Decree of the Republic of Uzbekistan No. UP-4, titled “On Measures to Improve the Waste Management System and Reduce Its Negative Impact on the Environment.”

In accordance with the draft, amendments will be introduced into the laws “On Consumer Protection,” “On Competition,” and “On Electricity,” providing mechanisms to collect waste disposal fees together with electricity payments.

Specifically:
• The law “On Consumer Protection” introduces the practice of temporarily restricting the acceptance of electricity payments in cases of non-payment for waste collection and disposal services.
• According to the law “On Electricity,” sanitation companies, in cooperation with electricity suppliers, will notify subscribers via SMS about outstanding debts for monthly waste disposal services and electricity usage, as well as the necessity to pay these dues on time. If the debt remains unpaid after notifying the consumer, temporary restrictions on accepting electricity payments will be imposed until the debt is settled.

Current Challenges: Currently, there are numerous instances of delays or non-payment by the population for waste collection and disposal services, resulting in an annual increase in accounts receivable, which now amounts to 615.6 billion UZS. Under the new regulations, if citizens fail to clear their debt for sanitation services even after receiving a special warning, they will be unable to pay for electricity until the outstanding balance is settled.

Phased Implementation Timeline (Presidential Decree No. UP-5, January 4, 2024):
1. Phase 1: From January 1, 2024 – Implementation in Tashkent, Nukus, and regional administrative centers for debts exceeding six months.
2. Phase 2: From August 1, 2024 – Extension to all regions of the republic for debts exceeding three months.
3. Phase 3: From January 1, 2025 – Enforcement for any monthly debt.

Additional Provisions: The law mandates the integration of GPS-equipped vehicles of sanitation enterprises into the “Toza Makon-Billing” platform. Payments by residents of a given area will only be accounted for if the system uploads GPS-based photographs proving that sanitation vehicles entered the relevant territory and performed the cleaning services. For instance, if the sanitation schedule stipulates eight visits per month, payments will be calculated based on the actual number of completed visits. If visits are not made as per the schedule, and no photographic evidence of entry and cleaning is uploaded, the system will not calculate payments.

The main objective of the law is to ensure fairness and consistency in the payment for sanitation services provided to the population. Additionally, it aims to improve payment discipline and implement a mechanism for mandatory collection of household waste fees along with electricity bills.
☘️ @ekologuzenglish

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