Date: 08.11.2021

MCC and MFK introduce consumption-based billing model to district heat consumers

MCC and MFK organized a two-day training for the Energy Regulatory Office, Termokos, and DH Gjakova to introduce consumption-based billing for district heat customers.  Currently, district heat is billed depending on the square meter area being heated which can lead to wasteful habits like leaving heat on at full blast and opening windows when it gets too hot. Consumption-based billing will encourage efficient heating practices as households will likely have to pay more if they continue unfettered use, enabling an expansion of the district heating system to a wider set of consumers. 


Household heating is one of the biggest sources of energy use and pollution in Kosovo, and Termokos’ cogenerated heat from Kosovo Energy Corporation generation is one of the few efficient and inexpensive alternatives for household heating. This billing model will enable an increase in Termokos’ performance due to regular measurements and introduction of targets in loss reduction.


This switch to consumption based billing supported by MCC includes investments in thermostatic and balancing valves as well as heat cost allocators and meters, which allows controlling and regulation of the adequate heat supply according to the temperature outside, and is expected to enable increase of thermal energy savings up to 30% in the supply side. This will make possible the expansion of the Termokos network up to 40MWthermal.


This training is one of the most important aspects toward functionalizing the shift of the billing method from space area (m2) into measured consumption per (kWh), as part of Prishtina HeatSave project activities, which aims to support the transition of district heating residential customers from area-based billing to consumption-based billing. This project is a $10 million investment, supported by the Millennium Foundation Kosovo (MFK) and Millennium Challenge Corporation (MCC). 


Prishtina HeatSave is expected to:

  • Reduce demand on the district heat network
  • Support expansion of heat supply services to new consumers which rely on electricity for heating
  • Improve the services for the consumers who already reside in buildings connected to district heating services; and
  • Enable Termokos to transition into consumption-based billing and thus better align their revenues with their costs and the services they provide


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