In the Thesis, a thermal energy tariff benchmark method and principles for its practical use were developed. The method is based on the generation of a virtual DH market by using the Monte Carlo imitation model, which is based on the results of analyses of actual data of DH companies. By using the method, the DH industry could be aligned with the market principles and its regulation could be decoupled from various short-term interests. Thus, it would balance the interests of DH companies with the needs of consumers and the transformation of the industry towards climate neutrality. Users of the method could be Regulators and industry policymakers in countries where DH plays a key role in energy supply.