The Alternative Boiler Plant as a Mechanism for Solving Existing Heat Supply Problems

ABSTRACT

As part of the long tradition of EKO, we try to supplement the work of academic researchers with that of experts working in the field. This set of articles concerns the challenges facing the Russian heat supply system. We have asked S.V. Bukharov, a representative of the energy sector, to take part in the discussion. S.V. Bukharov has more than 15 years of experience in the financial and economic management of the energy sector (including with the Novosibirskenergo group, OJSC TGK-13, and the Association NP Market Council et al.). As a consultant, S.V. Bukharov has helped prepare materials for an appeal to the Russian government to classify the urban-type settlement of Linyovo (Iskitimsky District, Novosibirsk Oblast) as a heat supply price zone. This article describes the possible effects for the industry and consumers resulting from the transition to the “alternative boiler plant” model, including a description of the mechanisms for equalizing the price effects for consumers after the transition. S.V. Bukharov concludes by providing an assessment of the applicability of the new alternative boiler plant method.

KEYWORDS:

• alternative boiler plant
• heat supply
• unified heat supply organization
• single buyer
• tariff regulation

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

^1. The “alternative boiler plant” is the name of a new method for calculating heat prices in the thermal energy market. It is used to evaluate price relations between heat market participants. It does not refer to the building of physical boiler plants. In the literature, the method is also referred to as the “alternative boiler house.”—Trans.

^2. See A.B. Bogdanov, “Kotel’nizatsiia Rossii—beda natsional’nogo masshtaba” (available at http://www.rosteplo.ru/Tech_stat/stat_shablon.php?id=795; accessed on February 18, 2019).

^3. Federal Law No. 190-FZ “On the Heat Supply,” July 27, 2010.

^4. Available at https://www.interfax.ru/russia/647236; accessed on February 18, 2019.

^5. Currently, two municipalities are classified as heat supply price zones: the city of Rubtsovsk in Altai Krai and the urban-type settlement of Linyovo in the Iskitimsky District of Novosibirsk Oblast.

^6. The rules for determining the limit price level of thermal energy (capacity) in heat supply price zones, including the rules for indexing the limit price of thermal energy (capacity), were established by Decree of the Government of the Russian Federation No. 1562, December 15, 2017.

^7. For parties entering into an agreement on the execution of a heat supply schema in a heat supply price zone, the rules for determining the coefficient for setting the limit price for thermal energy (capacity) and the period for its application were establish by the Decree of the Government of the Russian Federation No. 860, July 23, 2018.

Additional information

Notes on contributors

S.V. Bukharov

S.V. Bukharov is located in Novosibirsk. E-mail: [email protected].