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Regulation of district-heating systems

Matthias Wissner

Utilities Policy, 2014, vol. 31, issue C, 63-73

Abstract: District heating plays a major role in many countries' heating markets. Unlike natural gas and electric power utilities, district-heating systems are commonly not subject to direct economic regulation, particularly with regard to prices. This article examines the possibility of regulating district-heating systems and the difficulties associated with practical implementation using the example of the German district-heating market. It considers, from an economic perspective, regulation of access to district-heating systems as well as regulation of pricing by district-heating systems. Ex-ante and ex-post regulation of retail prices are considered. Finally, some ideas for the further development of district-heating regulation are suggested.

Keywords: District heating; Regulation; Competition; Natural monopoly; Heating market (search for similar items in EconPapers)
Date: 2014
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Handle: RePEc:eee:juipol:v:31:y:2014:i:c:p:63-73