Visegrád, November 2013 Egon Erlandsen Special Advisor

DBDH – unites the energy Organisation for leading actors in the District Heating and Cooling Sector Established in 1978 (35 years) 40 members – (i) Manufacturers, (ii) Consulting Engineers and (iii) Utilities Magazine HOT|COOL – Quarterly Journal – +100,000 Monthly Hits – + 5,000 Unique Monthly users

Impossible to find areas for landfills inside the boundaries of the municipality of Frederiksberg. Construction of a new hospital.

1903

Frederiksberg today inhabitants DH covers 99,2 % of the heat demand Frederiksberg DH Company – a limited company owned by the municipality All heat is bought from The Central Transmissions Company (CTR)

Basic principles in the Danish Heat supply Act The municipality must approve all projects for public heat supply The municipality must chose the project which is the most valuable for Society. Heat must basically be co-produced with electricity Public heat supply systems must ”pay for itself” – without subsidies from the municipality Heat policy is separated from social policy

Expenses for DH- companies (Fixed cost) Deprecation of investments Administration Fixed maintenance cost

Expenses for DH- companies (Variable cost) Heat and energy Power Taxes Variable maintenance cost

None Profit price regulations A supplier may not charge any more or any less for heat than it costs to produce DH is a non profit monopoly business Only real cost can be covered by heat payment Non Profit principle in DH

The Board approves the DH price for the new year and prices are send to the Danish Energy Regulatory Authority (DERA) By end of the year deviation to the actual costs is reported to DERA The surplus or deficit is regulated in the coming years customer price Price setting – how does it work? Budget year two & primarily acount for year one Energy price reporting Reporting account for year one

Regulation institutions Danish Energy Regulatory Authority is an independent institution and supervise the monopoly companies in the Danish energy sector Decisions from Danish Energy Regulatory Authority can be reviewed at the Energy Commision Board Companies and building owners can complain

Focus on DH Prices DH prices are annually made public. The list motivates DH companies to become cheaper Frederiksberg DH - among the 25 cheapest in Denmark

Free heating-installation-check-up every 4 years 82% of all have accepted this free service All errors found are reported to the owner The owner can choose to let a plumber to correct the error or pay the DH company to do it Energy saving activities

My name is Egon Erlandsen I come from the municipality Frederiksberg, located in the middle of Copenhagen Frederiksberg: inhabitants District heating (DH) from 1903, the oldest in Denmark The municipality made a heatplan 1984 DH conference Visegrád nov.

Denmark’s DH Carbon Footprint 18 DBDH & Cowi

Foto: Hot|Cool 1/2008 Thank you For further information: