Algorithm for calculation of district heating tariff benchmark

Based on the framework and the structure defined in this publication, as well as by integrating the proposed modules and mechanisms (Monte Carlo simulation; instruments for a regulator for implementation of energy policy; specific tariff compliance tests), it is possible to create algorithms for calculation of benchmarks for DH generation, transmission and distribution tariffs and evaluation of specific tariffs. These algorithms allow to make radical changes in the regulatory regime, i.e. to refuse from the scrupulous ex-ante regulation and to focus the activity of a regulator on supervision and stimulation of efficiency of DH companies, thus eliminating any drawbacks, which are characteristic for the “stringent” regulatory regime.