District Heating Regulation: Parameters for the Benchmarking Model

摘要: Abstract In this paper the authors have assessed disadvantages of current Latvian district heating (DH) regulation system and marked next steps for a transition from hard towards approximation benchmarking market principles. The regulatory in Latvia which is based on “cost+” method not motivating DH companies to increase operational efficiency optimize investments. As result, overinvestment assets poorly utilized production facilities resulting additional costs are shifted customers observed. general terms, cost-efficient tariff depends investment choices, conditions capital utilization operations performance. Using operation data companies, analyze cost drivers exogenous factors (e.g. heat load density, scale, resource prices, technical parameters, etc.) most relevant reflection mentioned three aspects could be useful model.