The purpose of the Act is to promote the most socio-economic, including environmentally friendly, use of energy for heating buildings and supplying hot water and, within this framework, to reduce the energy supply's dependence on fossil fuels. The purpose of the Act is also to promote the use of energy from renewable energy sources in heat production for use in companies' production and services.
The organisation of the heat supply shall be carried out with a view to promoting the co-production of heat and electricity as much as possible.
Companies registered under the VAT Act may apply to the Minister for Climate, Energy and Utilities to participate in an energy efficiency scheme for surplus heat. The energy efficiency scheme must include energy reviews with a view to identifying possible energy efficiency improvements of the company's surplus heat and implementing these.

