Recent dynamic changes in global fossil fuels markets and the European carbon dioxide emission allowances system have significantly impacted the energy sectors. These fluctuations also influence district heating (DH) markets where coal and natural gas remain dominant energy vectors in numerous European countries. District heating markets are distinct from other commodity markets due to their local nature and distribution requirements. Consequently, they can operate under various market models and have different price design policies depending on the country and region. With these considerations, this study aims to review and analyse the current market models and regulations of price formulation in the context of final prices in selected district heating markets. The primary objective is to conduct an in-depth analysis of the key district heating markets in Poland and compare the outcomes with the markets of neighbouring countries, including the Czech Republic, Slovakia, Lithuania, Latvia, Estonia, and Germany. Poland is taken as an example due to its high dependence on fossil fuels and its vulnerability to current global price fluctuations. The results indicate that Poland has one of the most regulated district heating markets, and these regulations can impact the profitability of district heating companies with high prices of fuel and carbon certificates observed in global markets. To create incentives for potential investors and incumbent companies to develop more sustainable and low-emission district heating markets in Poland – where energy transition processes are still underway – it is recommended to increase the frequency of formulation and approval of tariffs.