District heating and cooling (DHC) is the third largest energy utility, following the electric and gas companies. Heat Supply Business Law is designed to protect consumers. Since district heating and cooling service is a public utility, the law provides for subsidies. District heating and cooling service is managed in partnership with regional public organizations and private enterprises.
One or several plants supply chilled water and hot water (steam) to multiple buildings through pipes for use in heating and cooling. This is called a DHC system.
Category | Necessary conditions for the application of Heat Supply Business Law | |
---|---|---|
Conditions | Demand | General demand |
Scale | Heating capacity of 21 gigajoules per hour or more | |
Number of buildings supplied | Multiple number of buildings | |
Supplier | A Third party with no financial affiliation with the users of the service, or a supplier that does not utilize the service itself |