Price regulation method is carried out on the basis of:

• Price Control Act;
• twelfth indent of Article 2 of Decree supplementing the Decree laying down the list of goods and services subject to price control measures;
• the methodology for determining the price of heat for district heating as defined in the Decree setting prices for the generation and distribution of steam and hot water in district heating for tariff customers, which entered into force on 23 April 2014 and is valid for 12 months.

The price of heat for district heating will be, in accordance with the new Energy Act that entered into force on 22 March 2014, regulated if:

• a heat distributor carries out the activity a service of general economic interest (which is mandatory, if a distributor supplies or intends to supply more than one hundred household consumers);
• in case of distribution system where the total rated power capacity of the connected consumers' equipment on the network exceeds 500 kW or more.

The regulated price is also the one that is charged by the regulated heat producer for heat production – means any legal or natural person that supplies heat to a heat distributor providing services of general economic interest and is connected to the distributor through an equity stake, or sells to the distributor more than 30% of the total amount of heat planned for the following year's distribution.

Energy Act determines that after the expiry of the current methodology the price regulation of heat for district heating within distribution systems of distributors carrying out a service of general economic interest, and the price charged by a regulated heat produces will be regulated in accordance with the methodology for determining the prices of heat for district heating, which will be prescribed by the Energy Agency in its general act. By the methodology, the manner of forming starting price as the highest average price on the basis of which the distributor and regulated heat producer form heat prices of district heating in accordance with the criteria and mechanisms set out in the methodology will be set.