TY - JOUR
T1 - Getting fair institutional conditions for district heating consumers
T2 - Insights from Denmark and Sweden
AU - Gorroño-Albizu, Leire
AU - de Godoy, Jaqueline
N1 - Publisher Copyright:
© 2021 The Author(s)
PY - 2021/12/15
Y1 - 2021/12/15
N2 - District heating is expected to play an important role in the EU for the implementation of a low carbon energy system with high shares of renewables. Empirical examples from several countries show that district heating companies can misuse their monopoly position, hampering district heating adoption. To address this issue, it is necessary to develop and implement institutional frameworks that promote fair conditions for consumers. However, it is still unclear how to do this. This article reviews the institutional conditions implemented in Denmark and Sweden from the start of district heating until the present and analyses why different institutional configurations have managed or failed to promote fair conditions for consumers. The analytical framework for consumer power in natural monopolies is applied. The data is collected via a structured literature review, interviews with experts and other data sources such as resolutions of consumer complaints, relevant stakeholders’ websites and legal documents. The results indicate that local ownership, transparency and communication have been of key importance to reduce prices in both countries. Further research is necessary to fully understand how the institutional conditions have influenced product and customer relation quality. Lessons from Denmark and Sweden are outlined.
AB - District heating is expected to play an important role in the EU for the implementation of a low carbon energy system with high shares of renewables. Empirical examples from several countries show that district heating companies can misuse their monopoly position, hampering district heating adoption. To address this issue, it is necessary to develop and implement institutional frameworks that promote fair conditions for consumers. However, it is still unclear how to do this. This article reviews the institutional conditions implemented in Denmark and Sweden from the start of district heating until the present and analyses why different institutional configurations have managed or failed to promote fair conditions for consumers. The analytical framework for consumer power in natural monopolies is applied. The data is collected via a structured literature review, interviews with experts and other data sources such as resolutions of consumer complaints, relevant stakeholders’ websites and legal documents. The results indicate that local ownership, transparency and communication have been of key importance to reduce prices in both countries. Further research is necessary to fully understand how the institutional conditions have influenced product and customer relation quality. Lessons from Denmark and Sweden are outlined.
KW - Consumer power
KW - District heating
KW - Fair institutional conditions
KW - Ownership and citizen participation
KW - Policies and public regulation
KW - Technology adoption
UR - http://www.scopus.com/inward/record.url?scp=85111936937&partnerID=8YFLogxK
U2 - 10.1016/j.energy.2021.121615
DO - 10.1016/j.energy.2021.121615
M3 - Journal article
AN - SCOPUS:85111936937
SN - 0360-5442
VL - 237
JO - Energy
JF - Energy
M1 - 121615
ER -