Competition Committee proposes banning the transfer of utility debts to new homeowners

The Committee argues that forcing a new homeowner to shoulder the financial liabilities of a former occupant violates Article 21 of the Law "On the Protection of Consumer Rights." This statute explicitly defines any contractual terms that restrict consumer rights or cause detriment as illegal.

To illustrate the severity of the issue, the Committee cited a recent case from Samarkand region. A citizen purchased a home after the "Notarius" electronic system confirmed no outstanding liabilities. However, the regional water utility, Samarkand Suv Taʼminoti, later presented the new owner with a bill for UZS 13,000,000 in arrears left behind by the previous resident. Investigations revealed the debt appeared due to a data entry error made by a former utility employee in the billing system. The Committee eventually intervened to restore the citizen’s rights and cancel the unjustified charge.

Under current regulations, the "Notarius" system must mandatorily verify that there are no unpaid taxes, utility bills, or existing liens on a property before a transaction can be legally finalized. Real estate deals are only permitted to proceed if the system shows a zero balance for these obligations.

According to the watchdog, these disputes are frequently fueled by human error, such as incorrect data entry into billing platforms, and the failure of utility companies to update electronic records in real time. Furthermore, some contracts continue to include unlawful provisions that shift the burden of proof or payment onto the unsuspecting buyer.

The Committee emphasized that utility providers are legally responsible for the accuracy of their internal billing data and are obligated to ensure this information is transmitted correctly to interagency electronic systems.