District heating and cooling (DHC), when combined with waste or renewable energy sources, is an environmentally sound alternative to individual heating and cooling systems in buildings. In this work, the theoretical energy and economic performances of a DHC network complemented by compression heat pump and sewage heat exchanger are assessed through dynamic, year-round energy simulations. The proposed system comprises also a water storage and a PV plant. The study stems from the operational experience on a DHC network in Budapest, in which a new sewage heat recovery system is in place and provided the experimental base for assessing main operational parameters of the sewage heat exchanger, like effectiveness, parasitic energy consumption and impact of cleaning. The energy and economic potential is explored for a commercial district in Italy. It is found that the overall seasonal COP and EER are 3.10 and 3.64, while the seasonal COP and EER of the heat pump alone achieve 3.74 and 4.03, respectively. The economic feasibility is investigated by means of the levelized cost of heating and cooling (LCOHC). With an overall LCOHC between 79.1 and 89.9 €/MWh, the proposed system can be an attractive solution with respect to individual heat pumps.