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Efficient tariffs to market district heat

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  • Wirl, Franz

Abstract

The pricing of district heat is an efficient marketing instrument, in addition to a coercive measure. We derive an efficient contract, i.e., a mix of charges (for access, fixed charges and for heat) such that all costs are covered and that the consumer's expenses are minimal. Price differentiation need not be unfair if everyone gains. Moreover, price differentiation may help to attract new classes of customers who cannot be reached with uniform tariffs.

Suggested Citation

  • Wirl, Franz, 1990. "Efficient tariffs to market district heat," Energy, Elsevier, vol. 15(9), pages 773-779.
    • Handle: RePEc:eee:energy:v:15:y:1990:i:9:p:773-779
    DOI: 10.1016/0360-5442(90)90116-J
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