- Energi-Indhold-05-UK - Energitilsynet

annual cost of heating a house of 130 m 2 with annual heating consumptionof 18.1 MWh in the last five years has been between DKK12,700 and 13,000.Random reviews of thedistrict heating sectorEnterprises have a statutory duty to report to DERA any changes inprices, budgets, accounts, and other price-based data. Furthermore,changes in articles of association, terms of supply and other aspects ofimportance to the relationship between the enterprise and its customersmust also be notified. At least once a year, the approximately 600 districtheating plants report changes to DERA’s heating register.The National Audit Office of Denmark is concerned that DERA has notcomplied with the requirement in the District Heating Supply Actregarding setting up a public register of prices fixed by district heatingplants, and that it has not prepared periodic analyses of the income andexpenditure of district heating suppliers. Lack of resources has meantthat it has not been possible to review systematically financial statementsfrom all the district heating plants every year. Therefore, theAuthority has decided to initiate sample reviews of the reports fromdistrict heating suppliers. The sample reviews will be initiated in 2006.The sample review will concentrate on budgets and accounts. This isbecause full notification of prices and the basis for these prices is oftenoverlooked by district heating suppliers.DERA will also intensify work to make reports from heating suppliersto the heating register more accessible for consumers. An IT solution isbeing developed to promote transparency of prices and terms of supplyin the area.Price caps on heatfrom wasteincineration plantsWaste incineration plants are very important for the supply of districtheating. Up to 20 per cent of district heating comes from these plants.Joint production presents special problems for price setting.Waste incineration plants provide three products: waste incineration,electricity and heat. Heat producers cannot charge more for heat fromtheir consumers than the necessary costs, and therefore calculationsmust be performed to distinguish between costs associated with collectionand incineration of waste, costs linked to electricity generation,and costs arising solely from heat production.The former Gas and Heat Price Committee developed the substitutionprinciple in the 1980s as a tool for a practical and manageable solution28 Danish Energy Regulatory Authority · Annual Report 2005