Under conventional arrangements, private users and companies buy their electricity from a power company and their fuel from the corresponding suppliers. This is a convenient means of supply but it is also costly and inefficient because it results in large losses in the form of unused energy.
CHP (Combined Heat and Power generation, also known as cogeneration) is a good alternative, because it is more economic and more ecologically friendly.
It allows electricity demand to be met without transmission losses, and it also makes use of residual heat. This means a saving in fuel and a reduction in the emission of pollutants.