4.3.3. Unfitness of the current management system for flexible charging methods for end users
4.4. Other problems of current management system
4.4.1. Current management system’s incentive for dangerous business models
Besides the heating fees based on floor space, another source of income for heating companies is the “expansion fee”. Throughout the development of the district heating system, end users who PI-103 Hydrochloride applied to join the network were required to pay an “expansion fee” to fund the construction of networks and heating stations. From then on, charging an expansion fee has become standard across China. The expansion fee usually ranges from 30 RMB/m2 to 100 RMB/m2. The fee is namely used for the construction of networks and heating stations, but is not in proportion to the actual extension and renovation fee as the money required for sieve cells construction and expansion varies greatly in different situations. The property rights of networks and heating stations still belong to the heating companies, and have nothing to do with the users who have paid the expansion fees. This is why maintenance work and fees are undertaken by the heating companies.