Heating Bill

The heating cost statement is the annual statement of heating and hot water costs in a multi-unit residential building that the landlord or condominium manager must provide to the tenant or unit owner-broken down into a consumption-based portion and a non-consumption-based portion. The legal basis is the Heating Cost Ordinance (HeizkostenV), which applies nationwide and sets specific requirements for the recording, allocation, and billing of costs. An incorrect or late heating cost statement may entitle the tenant to a 3% reduction in the billed costs.

Principles of the Heating Cost Ordinance

The Heating Cost Ordinance stipulates that at least 50% and no more than 70% of heating costs must be allocated based on actual consumption, with the remainder distributed according to living area or cubic meters of enclosed space. For hot water, the following applies: at least 50% based on consumption, up to a maximum of 70% as a flat rate. A prerequisite is that each apartment is equipped with metering devices (heat cost allocators on radiators, heat meters). Since 2021, these metering devices must be remotely readable; starting in 2027, monthly consumption reports will be mandatory.

The consumption-independent portion-also known as the base cost portion-covers fixed costs that are incurred regardless of actual consumption: heating maintenance, chimney sweep costs, exhaust gas inspection, meter reading service fees, and, if applicable, rental and calibration costs for meters, as well as the base price for energy supply. This portion is allocated to all residential units according to the agreed-upon floor area distribution-including apartments that were vacant during the billing period.

Structure and Required Information for the Heating Cost Statement

A proper heating cost statement includes:

• Billing period (usually a calendar year or a different fiscal year)
• Total costs for heating and hot water (fuel, operation, maintenance, chimney sweep, district heating fee if applicable)
• Breakdown into base and consumption costs
• Consumption values for each residential unit (meter reading results)
• Calculation basis and allocation formula
• Advance payments and balance (additional payment or credit)

Since the amendment to the Heating Costs Ordinance (HeizkostenV) in 2021, landlords must also provide consumption information in a standardized format that compares the tenant’s consumption with the previous year and with an average consumption. This is intended to motivate tenants to consciously manage their energy consumption.

Deadlines and Legal Consequences in Case of Errors

The landlord must submit the heating cost statement within twelve months of the end of the billing period. If the landlord is late, they can no longer demand additional payments; however, they must still refund any credit balance. If the required consumption-based statement is missing or if the metering devices are not available, the tenant may reduce the bill by 15%. Incorrect allocation keys or missing receipts justify a challenge.

Tenants have twelve months after receiving the statement to raise objections. After that, the statement is deemed accepted. However, the right to inspect receipts remains in effect for a longer period. Landlords are obligated to provide copies of the underlying invoices and meter readings upon request.

Special Case: District Heating

For buildings connected to district heating-in Nuremberg, large parts of the city are supplied with district heating by N-ERGIE-the billing structure is similar but has some specific features: The district heating price consists of a capacity charge (for the connected capacity provided) and a consumption charge (for actual usage). Both components must be clearly itemized in the heating cost statement. The tenant must be notified in a timely manner of any changes to district heating prices by the supplier.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that landlords in Nuremberg and the surrounding region outsource heating cost billing to a specialized billing service provider (e.g., techem, ista, Brunata), which will also handle the installation and remote reading of the metering devices. This saves time, reduces sources of error, and ensures compliance with the stricter requirements in effect since 2021.

Also check whether your metering devices are already capable of remote reading-older wireless systems are often not yet capable of remote communication and must be retrofitted by 2027. Investing now saves you from having to retrofit under time pressure. In addition, many metering service providers now offer digital portals through which landlords and tenants can view consumption in real time-a plus for transparency and dispute prevention.

Frequently Asked Questions

What can I do as a tenant if I believe the heating bill is incorrect?

Tenants have the right to inspect the documentation for the heating bill with the landlord and request copies. If an error is found, you can file a written objection and request a corrected bill. If you have not raised any objections by the end of the 12-month period after receiving the bill, it is considered accepted.

Does a tenant with underfloor heating also have to be billed based on consumption?

Yes. Underfloor heating systems must also be equipped with heat meters to enable consumption-based billing. If no metering is in place, the tenant is entitled to a 15% reduction.

Can the landlord also bill hot water costs on a flat-rate basis?

No. According to the Heating Costs Ordinance (HeizkostenV), hot water must always be recorded and billed based on consumption if the system is centralized. Only in the case of individual hot water supply (instantaneous water heater in the apartment) is the billing obligation waived, because the tenant pays for it themselves.

What happens if the tenant does not receive an interim reading when moving out?

The landlord is obligated to arrange for an interim meter reading when there is a change of tenants so that the departing tenant is liable only for their actual consumption. If the interim reading is culpably omitted, the landlord must estimate consumption-a method that is susceptible to challenges in court. We therefore recommend always documenting interim readings and attaching them to the move-out report.

How does switching to district heating affect the heating bill?

In Nuremberg, a significant portion of the city is supplied with district heating by N-ERGIE-including large parts of Langwasser, Schoppershof, and the high-rise housing estates from the 1960s and 1970s. Anyone who purchases or renovates a multi-family home and applies for a district heating connection must reflect the special pricing structure of district heating in the heating cost statement: The district heating price consists of a capacity charge (for the available connection capacity in kW, regardless of consumption) and a usage charge (per kWh of actual consumption). Both components must be clearly separated and shown in the annual statement for tenants. Increases in the district heating price by N-ERGIE must be communicated to the tenant with reasonable advance notice. Owners who switch from gas-fired individual heating to district heating benefit from the elimination of maintenance costs but have less control over price trends than with their own boiler. We recommend obtaining N-ERGIE’s current district heating rate terms before connecting and factoring in potential price increases over the long term.

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