In Latvia, under the typical North European weather conditions, almost half of the total energy consumption is used to produce heat. There are widespread district heating systems not only in the big cities and small towns but also in rural villages. In Latvia’s capital, centralised heating plants have been built equipped with the most contemporary cogeneration technology and gas turbines. Almost half of Latvia’s territory is covered with forests; therefore it is profitable to increase and improve the utilisation of energetic wood. The production of woodchips from the waste of the forestry and wood processing plants is already widely developed, especially in the regions which are rich in forests. A complicated problem is connected with the payment for the heat. But, making use of the situation, a part of the population does not pay for the heat; there have appeared malicious non payers having good incomes. It is a not easy to restrict them because in apartment houses cutting off individual flats from the central heating network is impossible. As a result, in some cases the debts of the malicious non payers reach the price of the flat. Therefore legislation must be improved in order to regain the debts.