Cogeneration or combined heat and power (CHP) is a thermal power generation cycle with the merit of recovering part or all of the heat that is fatally discarded by such cycles. This merit of higher efficiency is subject of rewarding by public authorities. When the EU enacts CHP promotion in a Directive (1997-2004), crucial measurement and qualification issues remain unsolved. CEN (coordinator of the European Bureaus of Standards) contributes in clarifying the measurement of CHP activities, but shortfalls remain, while CEN bypasses the debate on qualifying CHIP performance. This article offers appropriate methods for measuring CHP activities based on design characteristics of the plants. The co-generated electric output is a necessary and sufficient indicator of CHP merit and performance. Regulators can extend this indicator, but should avoid the perverse effects of biased external benchmarking as the EU Directive entails. (C) 2008 Elsevier Ltd. All rights reserved.