The pricing methods on the monopoly district heating market

The pricing methods on the monopoly district heating market

District heating plays an important role in many countries with cold climates. District heating are local systems and in most cases, they organized as natural monopoly markets. This article examines the three variants for the formation of prices for household consumers on monopoly district heating m...

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Main Authors: Valery Stennikov, Andrey Penkovskii
Format: Article
Language:English
Published: Elsevier 2020-02-01
Series:Energy Reports
Online Access:http://www.sciencedirect.com/science/article/pii/S2352484719309345
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spelling doaj-9b73812cf97844079b4c5ff8872764a52020-11-25T02:11:41ZengElsevierEnergy Reports2352-48472020-02-016187193The pricing methods on the monopoly district heating marketValery Stennikov0Andrey Penkovskii1Melentiev Energy Systems Institute of Siberian Branch of the Russian Academy of Sciences, Lermontov str., 130, Irkutsr, 664033, RussiaCorresponding author.; Melentiev Energy Systems Institute of Siberian Branch of the Russian Academy of Sciences, Lermontov str., 130, Irkutsr, 664033, RussiaDistrict heating plays an important role in many countries with cold climates. District heating are local systems and in most cases, they organized as natural monopoly markets. This article examines the three variants for the formation of prices for household consumers on monopoly district heating market: market equilibrium of supply and demand for heat energy (liberalized district heating market) and forming the price of heat energy based on average total and marginal costs (regulated heating market). To perform calculations, a mathematical model of the district heating market is developed. It is based on the classical model of monopoly market. The model was applied to conduct the studies on a heat supply system with three heat sources. Keywords: Heat supply system, Monopoly district heating market, Heating pricing, Market equilibrium, Regulation, Mathematical modelinghttp://www.sciencedirect.com/science/article/pii/S2352484719309345
collection DOAJ
language English
format Article
sources DOAJ
author Valery Stennikov
Andrey Penkovskii
spellingShingle Valery Stennikov
Andrey Penkovskii
The pricing methods on the monopoly district heating market
Energy Reports
author_facet Valery Stennikov
Andrey Penkovskii
author_sort Valery Stennikov
title The pricing methods on the monopoly district heating market
title_short The pricing methods on the monopoly district heating market
title_full The pricing methods on the monopoly district heating market
title_fullStr The pricing methods on the monopoly district heating market
title_full_unstemmed The pricing methods on the monopoly district heating market
title_sort pricing methods on the monopoly district heating market
publisher Elsevier
series Energy Reports
issn 2352-4847
publishDate 2020-02-01
description District heating plays an important role in many countries with cold climates. District heating are local systems and in most cases, they organized as natural monopoly markets. This article examines the three variants for the formation of prices for household consumers on monopoly district heating market: market equilibrium of supply and demand for heat energy (liberalized district heating market) and forming the price of heat energy based on average total and marginal costs (regulated heating market). To perform calculations, a mathematical model of the district heating market is developed. It is based on the classical model of monopoly market. The model was applied to conduct the studies on a heat supply system with three heat sources. Keywords: Heat supply system, Monopoly district heating market, Heating pricing, Market equilibrium, Regulation, Mathematical modeling
url http://www.sciencedirect.com/science/article/pii/S2352484719309345
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