Restructuring and regulating district heating and cogeneration in transition economies

In summer 2004, the World Energy Council published a Study on 'Regulating district heating and cogeneration in central and eastern Europe'2, prepared by representatives from eleven economies in transition and two Nordic countries. The Task Force analysed twelve regulatory issues, country-by-country, on all internationally comparable basis. Regulatory progress on the road to more efficient, profitable, competitive and service-oriented heat supplies was described. Common concerns were identified: the need for independence of the regulator from policy and industry, improved coordination between central and local regulators and between environmental and energy authorities, access to grids, and a 'fair' sharing of CHP benefits among heat and electricity generation. Looking forward, the Task Force advocated a continued dialogue between decision makers, regulators, regulated industries and customers on: 1)the internalisation of DH/CHP benefits; 2)the future reduction of the density of regulation; 3) Joint implementation; 4)the compensation for public service obligations; 5)the elimination of old debt and stranded investments; 6) DH/CHP taxation; 7)privatisation; 8)the integration of DH/CHP in urban planning. A concluding WEC workshop in Moscow in March 2004 addressed recommendations to policy makers('Moscow Statement'). (Author)