In this article
- Theorizing systemic change: legacies and path dependencies in post-socialism and beyond
- Methods and paper structure
- The legacy of district heating in Czechia
- Private heat: energy sector reforms at the national scale
- DH regulation and policy in Liberec
- Unraveling DH price increases in Liberec
- Barriers to fuel switching and DH development
- A complex lock-in through rolling path dependencies
- Disclosure statement
This paper uses the experience of post-socialist district heating reforms to tell a broader story about the continued and shared challenges that central and eastern European cities face as they grapple with the legacies of the recent and more distant past. We argue that the restructuring of this infrastructural domain has been contingent upon geographically embedded trajectories stemming from previous historical periods, while leading to the creation of new socio-technical lock-ins. The paper thus develops the notion of “rolling path-dependencies” in order to explore how post-socialist developments both overcome and supplant previous trajectories of transformation. It focuses on the northern Czech town of Liberec – a place that is known for having some of the highest heating prices in the country – to elucidate how a socially, economically, and environmentally detrimental lock-in has come into existence as a result of ill-conceived policies of marketization, municipalization, and privatization. Using evidence from official documents and interviews with policy-makers, we demonstrate how the infrastructural legacies of post-socialism both persist and are being reproduced at the urban scale even within “advanced” reforming states like Czechia.
Liberec is a medium-sized city and regional administrative center nested amidst the mountains that line Czechia’s northern borders with Poland and Germany. It has generally remained outside the attention of mainstream academic research on economic and political change within and beyond the region. Yet this city with a population of just over 100,000 people recently entered the national limelight as a result of news reports that local citizens were paying astronomically high prices for their district heating (DH) supply (Pšeničková 2015Pšeničková, Jana. 2015. Liberec Chce Dotlačit Teplárnu, Aby Snížila Ceny. Odpustí Jí Nájemné [Liberec pressures district heating plant to reduce prices – rent will be forgiven]. Accessed May 2, 2016.http://liberec.idnes.cz/liberec-se-snazi-snizit-cenu-tepla-d5e-/liberec-zpravy.aspx?c=A151030_154454_liberec-zpravy_tm). Not only did heating tariffs rise well beyond affordable levels, but households were locked into a system that prevented them from switching to a different source of energy supply. In addition, there was evidence to suggest that the local authority was indirectly supporting the privately owned DH company via a complex web of ownership interests and policy measures.
As it turns out, the Liberec case is not isolated in the context of the post-socialist countries of Central and Eastern Europe (CEE) and the Former Soviet Union (FSU). In fact, a number of cities and countries in the region have struggled with the legacies of centralized heating supply systems – commonly known as district heating systems (Poputoaia and Bouzarovski 2010Poputoaia, Diana, and StefanBouzarovski. 2010. “Regulating District Heating in Romania: Legislative Challenges and Energy Efficiency Barriers.” Energy Policy 38: 3820–3829.10.1016/j.enpol.2010.03.002) – inherited from their respective centrally planned economies. This large-scale form of energy provision was emblematic of the political ideologies and urban development policies that underpinned state socialism. The system entailed the delivery of hot steam or water to households and companies via large and centralized networks of pipes and pumping stations. The water itself was heated in fossil-fuel burning plants (primarily coal, heavy fuel oil, and sometimes gas) that also often produced electricity. Under the unfolding crisis of the socialist system, the plants and networks themselves became poorly maintained, with much energy being lost between the sites of production and consumption (Bouzarovski 2009Bouzarovski, Stefan. 2009. “East-central Europe’s Changing Energy Landscapes: A Place for Geography.” Area 41: 452–463.10.1111/area.2009.41.issue-4; Rezessy et al. 2006Rezessy, S., K.Dimitrov, D. Urge-Vorsatz, and S.Baruch. 2006. “Municipalities and Energy Efficiency in Countries in Transition. Review of Factors That Determine Municipal Involvement in the Markets for Energy Services and Energy Efficient Equipment, or How to Augment the Role of Municipalities as Market Players.” Energy Policy 34: 223–237.10.1016/j.enpol.2004.08.030).
DH systems were intimately tied to economic, social, and spatial planning practices and policies under socialism. These networks accompanied mass production and supported daily life and mass consumption of heat in standardized housing. They were also dependent on the promotion and maintenance of particular types of urban forms. The upkeep of such sizeable networks became costly and complex under the market conditions that evolved after the fall of communism. With increasing numbers of consumers switching to other energy carriers – leading to falling revenues and a subsequent need for additional price increases – utilities resorted to punitive measures to prevent further disconnection. Evidence of consumers being “trapped in the heat” has emerged in several CEE countries (Poputoaia and Bouzarovski 2010Poputoaia, Diana, and StefanBouzarovski. 2010. “Regulating District Heating in Romania: Legislative Challenges and Energy Efficiency Barriers.” Energy Policy 38: 3820–3829.10.1016/j.enpol.2010.03.002; Tirado Herrero and Ürge-Vorsatz 2012Tirado Herrero, S., and D. Ürge-Vorsatz. 2012. “Trapped in the Heat: A Post-communist Type of Fuel Poverty.” Energy Policy 49: 60–68.10.1016/j.enpol.2011.08.067).
In this paper, we use the case of DH and the experience of Liberec more specifically as a starting point for making a broader argument about the continued importance of integrated perspectives on past and present urban transitions and transformations in CEE and the FSU. Drawing upon the multiple transformations model by Sýkora and Bouzarovski (2012Sýkora, Luděk, and Stefan Bouzarovski. 2012. “Multiple Transformations: Conceptualising the Post-communist Urban Transition.” Urban Studies 49: 43–60.10.1177/0042098010397402), we argue that the need for a holistic view on post-socialist systemic change still holds relevance for developments in the region and beyond, because micro- and meso-scale transformations in the domains of social practice, organizational change, and the evolution of urban and regional landscapes are ongoing. These claims are developed with reference to the specific infrastructural character of DH, which embodies the institutional and socio-technical inertia of past systems, being nested in past and present urban formations and challenged by recent impacts of free market conditions. Thus, DH can tell us a broader story about the continued and shared challenges that CEE and the FSU face as they continue to grapple with the legacies of communist central planning – even in the case of countries like Czechia that are now well integrated into the sphere of Western capitalism.