CHP DH Tariff Development

CHP DH Tariff Development

Tariff development in the LDA CHP DH schemes

Greenfield has developed a preliminary heat sales tariff for the London Thames Gateway Heat Network CPH DH scheme. The heat sales tariff has been considered from two angles; the seller’s cost background and the buyer’s alternatives (market). In addition, the analysis also included a peer comparison to some DH heat tariffs currently applied elsewhere.

Kiev CHP cost allocation and heat tariffs

The assignment for Kievenergo, Ukraine, included introducing  a new methodology  for allocating the CHP production costs for heat and power, respectively and developing of a new heat sales tariff based on the allocation. The main objectives were to prevent cross-subsidizing between heat and electricity business and to provide justified incentives for expansion of CHP DH by fair allocation of efficiency gains in co-generation.

Mr. Lehdonvirta was responsible for planning and managing the tariff development, providing the know-how on CHP cost allocation and on formulating a two-tier cost based tariff.

Financial analysis and improvement of tariff system in Jelgava (Latvia)

Work included financial analysis of the Jelgava DH utility and introduction of a cost-based two-tier tariff, based on the financial analysis.

As the DH Tariff Specialist Mr. Lehdonvirta carried out an analysis of the DH utility company’s financial situation. He also analyzed the cost background and clientele. Furthermore he estimated the future outlook for revenues, costs and investments after developing a cost based two-tier tariff system.