AB Vilniaus silumos tinklai (VŠT) supplies centralized heat and water to more than 220 thousand people. customers. And about 10 percent have more or less debts. of all customers – so over 20 thousand population. The average amount of debt per customer ranges from 100 to 300 euros.
Rūta Jasiulionienė, head of the VŠT Customer Team, says that in 2023, compared to 2022, customer debts for centralized heating and hot water services decreased by 12 percent.
“The total amount of customer debt to Vilnius heat networks is 4 percent. from the total bill to customers. About 2 percent they consist of short-term arrears lasting up to a month.
Most of the time, these are overdue payments, which the majority of customers pay, albeit late,” comments R. Jasiulionienė.
The representative of VŠT says that the trend of debt reduction in the capital could be determined by the fact that the price of heat decreased in Vilnius this heating season. The fact that warmer weather prevailed and less heat was consumed also contributed.
“Last December, our customers received almost a fifth lower bills than in 2022. It is also likely that the residents’ financial capabilities have improved, and customers prioritized the payment of heating and hot water bills when allocating their financial flows,” asserts R. Jasiulionienė.
She also adds that customers facing financial difficulties and unable to pay off their debt immediately should contact the VŠT Customer Service Center, where they can sign an agreement on paying off the debt in installments.
In Kaunas and Jurbarka, debts amount to 6.2 million euros
“Kaunos enerjija” heat networks, which provide heating and hot water services to the residents of Kaunas and Jurbarka, calculate that over the past four years, the amount of debts for services provided has decreased by a quarter. And compared to last year, this amount decreased by 4 percent.
April 1, 2024 according to data, the total debt of the population amounts to 6.2 million euros. In total, “Kaunos energija” serves 124 thousand population, of which 14.2 thousand are in arrears. The average debt of one user amounts to 440 euros.
“The debt is decreasing due to the favorable prices of centrally supplied heat – the people of Kaunas pay one of the lowest prices for heat in Lithuania, and the company’s successful debt administration actions. Debt usually increases slightly after the new year. At the end of the heating season, consumers repay a considerable part of their debts,” says Šarūnas Bulota, the head of the marketing and communication department of “Kaunos enerjija”.
The man adds that there is an increasing number of cases when the company no longer needs to collect debts, because consumers willingly cooperate with Kauno energija and inform about financial difficulties.
One in five faces financial difficulties
Aistė Adomavičienė, director of the National Network of Poverty Reduction Organizations (NSMOT), shares that according to a representative survey of “Sprinter Research” conducted in February, almost 20 percent of households in Lithuania face difficulties in order to pay rent or utility bills.
And 36 percent of people whose income does not exceed 500 euros per month say that they lack money to pay rent and utility bills.
“It’s really challenging for people, especially those on low incomes, and they’re looking for different ways to save. Do they distribute those taxes throughout the year, do they buy lower-quality food, do they save a lot, and so on,” says A. Adomavičienė.
The woman adds that, compared to recent years, poverty and the debt package are also growing, when people are no longer able to repay accumulated debts.
If you don’t repay your debts, you can lose your home
A. Adomavičienė states that if debts are not controlled in time, bailiffs are usually approached for forced recovery. As a result, the debt increases even more, as administrative costs also contribute. However, without a way to pay off these debts, borrowers are even at risk of losing their housing.
“If debts exceed 4 thousand euros, they can be recovered from the last home. The home is then sold at an auction price, which is usually lower than the market price. And it is not necessary that all those debts are covered after the sale of the house”, asserts the director of NSMOT.
More aids are needed
According to the latest data from the Official Statistics Portal, every fifth Lithuanian inhabitant lives below the poverty line. And according to Eurostat, we are ahead of the European Union (EU) average in terms of social exclusion and people living at risk of poverty, and are among the countries with the worst results.
A. Adomavičienė says that in order to change this indicator, first of all, more funding should be provided for the social protection of the Lithuanian population and assistance should be provided to those who have debt problems.
“According to the latest data for 2021, Lithuania allocates just over 18 percent of GDP to social security, while the average in the EU is almost 30 percent.” In order for us to do this, a tax reform is necessary, which will satisfy both defense needs and social needs”, comments the woman.
She adds that in the coming years, Lithuania should also implement the directive approved by the EU, by which people with debts would receive specialist consultations on the most diverse types of debts.
According to the director of NSMOT, Lithuanian municipalities could also help debtors with monetary support and payments.
“For example, if a family has arrears for kindergarten or bought some household equipment, technology, which is necessary, and was not able to pay on time. It is possible to look for ways to cover those debts or help people to provide themselves with the most necessary things”, says A. Adomavičienė.
