It is hard to put an end to such a situation under the current system, because heating companies are in reality monopolies with the power to decide whether to provide heating services or not. To be specific, compared to developers, heating companies hold an absolute power and can easily enforce expansion fees. It is difficult to change this SB1317 solely by releasing government documents without changing the system and the vested interests of all parties.
4.4.2. The inefficiencies in the management of end systems
Fig. 6. Average heat consumption under different management models. (a) Heat consumption of thermal substation. (b) Heat consumption of gas boiler. (C) Energy consumption of Beijing districts using energy performance contracting services.Figure optionsDownload full-size imageDownload as PowerPoint slide
Moreover, this overstaffed business model also does not incent the end service people to save energy because the energy saving efforts of a few districts hardly have any direct impact on the whole company’s financial returns. In most cases, employee performance is assessed on the quality and level of provided service. Such standards lead service staff to adopt different operation models to improve service quality, and costs go up accordingly.