Abstract
The purpose of the article is to formulate proposals to reshape the existing district heating market structure. Lithuanian district heating sector is highly integrated, local, naturally monopolistic and often municipality owned. Kaunas falls in a rather different position with several private independent heat producers. Despite this, the constantly increasing price of the heat is one of the reasons consumers to complain and to disconnect from the district heating networks. This situation implies strong need for change. Paper contains relevant literature review and a practical survey which is made using an official data and the data from district heating company Kaunas energy. The article ends with conclusions and practical suggestions addressed for Kaunas district heating sector.
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