The price of heat is approved by the Regulatory Office for Network Industries (RONI) on the basis of calculations, which algorithm is subject to valid legislation, mainly Decree no. 248/2016 Coll. When calculating heat price, we summarise all the anticipated costs required to provide heat delivery. The heat price is included in a proposal submitted to the RONI afterwards. As soon as the proposal is approved, a price statement is issued, stipulating maximum heat price for the particular heating period. This price cannot be exceeded. However, the price itself might be increased, if total costs rise. Such an increase is always subject to reassessment by the RONI, which will issue a new price statement after the new price is approved.
Heat price consists of:
- Variable component [€ per kWh] including direct costs for heat production, distribution and delivery (the most expensive assets are: fuel, purchased heat and electricity).
- Static (fixed) component [€ per kW of regulatory input power1] including indirect costs (e.g. repairs, depreciation, mandatory inspections, personal costs, etc.). This component also includes regulated level of profit.