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Pricing process is the process of tariffs formation, rates and ratio defining. Pricing order is defined by the Government of the Republic of Lithuania and implemented by institutions, empowered by the state in independent Lithuania. Heat tariffs are estimated using heat tariffs defining methodologies. District heating tariffs are regulated by the Government, however, recently, when heat tariffs were growing considerably due to growing prices for various types of fuel, payments for district heating became the main concern of residents. The paper provides a historical-expert overview of the pricing process and legislation regulating the formation of heat tariffs during the period 1970-2012. [ABSTRACT FROM AUTHOR]

District heating systems, which were developed during the period of planned economics, should be renovated to conform to market conditions, or otherwise these systems should be dismantled and changed with alternative heat supply solutions. Such solutions should be based on the analysis of the economic long-run heat supply costs, assuming the future costs of fuel and technological installations. The current investigation offers an economic viability analysis of the technological renovation in the heat generation sector on the basis of future investments, fuel, operation and maintenance costs and revenues from electricity generation, bearing in mind that the projects are to be implemented in the open market conditions. [ABSTRACT FROM AUTHOR]