Impact of laws and regulations on mutual settlement model between thermal energy producing enterprises and consumers and suppliers
2010
Bronka, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Zvirbule-Berzina, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics
The European Union has requested from Latvia to submit the predefined climate and power industry objectives till 2020. It is important for Latvia to primarily increase power efficiency of consumers and to expand the usage of renewable energy resources in order to increase the amount of renewable energy resources in total power consumption from 36% to 42% and to decrease the emission of CO2. The most efficient way to accomplish the objectives is heat insulation of buildings, yet it has slowed down due to building management issues and lack of financial resources. Moreover, the possibility to increase power efficiency from the position of a thermal energy produce-supply enterprise is limited by the system of settlements between power suppliers and consumers. For monthly used thermal energy consumers are allowed to pay by the end of the next month, but for natural gas thermal energy producer has to pay in the current month (once in 10 days). This system of settlements is in conflict with business conception, thereby violating the derivation of profit principle. Furthermore, activities of thermal power producers are limited by the system of settlements model variations set by laws and regulations. In standard situations building management should make payments for consumed thermal energy, but in reality this situation is different – consumers are the ones who make payments. Therefore, thermal energy producers encounter huge accounts receivable, which should be reflected in the balance sheet of building management. Reorganising the system of settlements and increasing wood biomass usage allows heat supply businessmen to decrease accounts payable and to increase energy efficiency in thermal energy production as well as heat supply administration.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by Fundamental Library of Latvia University of Life Sciences and Technologies
