Problems of the Russian Heat Supply and Ways of Solvung them

Abstract

The heat supply in Russia, two thirds of which is located in harsh climatic conditions, is the most important social sector of the economy, which largely determines the country’s energy security. Many problems have accumulated over the past period heat supply reforms. This is primarily due to the lack of mechanisms to manage the way they function and develop. The target model of the heat market adopted by the Government of the Russian Federation does not eliminate these problems, and aggravates the situation even more. To change the current situation, it is necessary to carry out organizational transformation of retail electricity and heat markets, turn around relations between suppliers and consumers of heat energy, introduce a tariff-based system based on marketing principles and focus on best technologies achieved. This will ensure technological transformation and improve the reliability and availability of heat supply. Implementation of these activities will require development and adoption of an appropriate set of legislative and regulatory documents.