District heating tariff component analysis for tariff benchmarking model

The aim of this study is to search for possible correlations between tariff components of Latvian district heating (DH) companies and their specific performance indicators. The purpose of the correlation analysis is to find parameters which can be used for the creation of a tariff benchmark model, which might be used in Latvia, as well as in other countries in order to eliminate negative aspects of "stringent" DH regulation cunently in use. The authors focus on significant components constituting the tariff the dependence of the heat production tariff on the cogeneration support schemes, fuel mix used, capacity load indicator. The authors conclude that actual DH companies and systems are very different even though they are grouped in a set based on one parameter, at the same time they considerably differ based on other parameters. Therefore, the creation of a benchmark model cannot be based on empirical regression equations only. (C) 2017 Published by Elsevier Ltd.