Municipalities are examples of organizations in the public sector with broad jurisdictions. Because of that their role in the energy sector is multiple, complex and important. They are both producers and distributors of energy (district heating), energy consumers (public buildings, water supply and other public utilities), as well as market regulators (thermal energy, public transport). They are responsible for maintenance and investment of public facilities and therefore they are obliged to pay for their energy costs. They implement local economic and social policies, adopt the plan of spatial and economic development, municipal regulations and make decisions about investments in municipal infrastructure that can have far-reaching effects.
Also, they prescribe the conditions, issue various permits for the construction of buildings (including some energy facilities), as well as for performance of economic activities. It should be added a direct impact on the population through the promotion, education, motivation, and initiating of social actions, but also an influence of the population as voters on the management of the municipality. However, despite their multiple roles, municipalities do not have the ability to fully and through all the processes, manage energy flows, because some energy flows, in whole or in part, are not under municipal jurisdiction. Therefore, their direct impact is mainly focused on the process of final energy consumption in the public and private sectors, which has a crucial influence on the most important objectives of the energy policy of the municipality.