Heating Cost Regulation

Heating Costs Ordinance - The Heating Costs Ordinance (HeizkostenV) is a federal regulation that requires landlords and condominium managers to bill heating and hot water costs primarily based on the actual consumption of individual users. It applies to all centrally heated buildings with at least two residential units and is intended to create an incentive to save energy through consumption-based billing.

Content and Billing Regulations of the HeizkostenV

The Heating Cost Ordinance stipulates that at least 50 percent and no more than 70 percent of heating and hot water costs must be allocated to users based on measured consumption. The remaining portion is billed as a base cost share according to a fixed allocation formula-typically based on living area. This allocation ensures that both individual consumption and structural differences in heat distribution are appropriately taken into account.

Obligation to Record Consumption: Metering devices that record individual heating energy consumption must be installed in every unit. Heating cost allocators on each radiator or heat meters are permitted. The landlord bears the costs for purchasing and maintaining the devices but may pass these on as operating costs.

Remote-Readable Metering Devices: Since the 2021 amendment, newly installed meters must be remotely readable. By the end of 2026 at the latest, all existing, non-remotely readable meters must be replaced with remotely readable technology-meaning that starting in 2027, only remotely readable meters may be in use. These meters automatically transmit consumption data and enable timely analysis without entering the residence.

Monthly consumption information: Since January 2022, tenants and homeowners in buildings with remotely readable meters are entitled to monthly consumption information. This must include the current monthly consumption, a comparison to the same month of the previous year, and a comparison with an average user. The goal is to raise consumer awareness and highlight potential savings.

Right to reduce payments in case of violations: If a landlord does not bill based on consumption or does so incorrectly, the tenant may reduce their share of the heating costs by 15 percent. This right to reduce payments is an effective leverage tool and is regularly upheld by courts.

CO2 cost allocation between landlord and tenant

Since January 2023, the Carbon Dioxide Cost Allocation Act (CO2KostAufG) has been in effect as a supplement to the Heating Cost Ordinance. It stipulates that CO2 costs from fuel emissions trading are no longer borne solely by the tenant but are divided between the landlord and tenant depending on the building’s energy efficiency. A ten-tier model classifies buildings based on their CO2 emissions per square meter per year. In buildings with very poor energy efficiency, the landlord bears up to 95 percent of the CO2 costs; in well-renovated buildings, the tenant pays the majority of the costs. This creates a financial incentive for landlords to invest in energy-efficient renovations. The landlord’s share of CO2 costs is shown separately on the heating bill and may not be passed on to the tenant.

Practical Tip for Nuremberg and Franconia

In the Nuremberg metropolitan region, there is a large stock of apartment buildings from the 1950s to the 1980s that are often still equipped with heating cost allocators that cannot be read remotely. We recommend that landlords and homeowners’ associations not wait until the last minute to convert to remotely readable devices, but rather tackle this promptly. Experience shows that demand among regional metering service providers increases significantly shortly before the transition period expires. It is also worth reviewing the CO2 tiered pricing model: particularly in typical post-war Franconian buildings with older gas heating systems, the landlord’s share of CO2 costs can be substantial. Seeking energy consulting early on-for example, through the Bavarian Consumer Advice Center in Nuremberg-helps set the right renovation priorities and make optimal use of subsidies.

Frequently Asked Questions

What happens if my landlord does not bill based on consumption?

If the landlord does not bill heating costs based on consumption, even though the Heating Costs Ordinance requires this, the tenant is entitled to a statutory reduction of 15 percent on their share of the heating costs. This right applies automatically and does not need to be asserted separately-it is sufficient to pay the reduced amount and inform the landlord of the violation. However, a complete refusal to make the additional payment is not permitted.

As a landlord, do I have to replace the meters by 2027?

Yes, all meters that cannot be read remotely must be replaced with remotely readable meters by December 31, 2026, at the latest. Starting in 2027, the use of non-remote-readable heat cost allocators or heat meters is prohibited. The landlord may pass on the costs of the conversion proportionally to the rent as a modernization measure or bill them as operating costs as part of the meter rental-depending on the chosen model.

How is the landlord’s share of CO2 costs calculated?

The landlord’s share is determined by the building’s CO2 emissions per square meter of living space per year. A ten-tiered table in the CO2KostAufG is used to determine the percentage that the landlord must bear. The calculation is usually performed by the metering service provider as part of the heating cost statement. The landlord receives a breakdown and must calculate their share from the statement before passing on the heating costs to the tenants.

Heating Cost Ordinance and WEG Statements

In condominium owners’ associations (WEG), compliance with the Heating Cost Ordinance is the responsibility of the property manager. The WEG, as a community, is responsible for proper consumption recording, while each individual condominium owner must comply with the Heating Costs Ordinance (HeizkostenV) vis-à-vis their tenants. Errors in the WEG heating cost statement can lead to disputes among owners-for example, if individual units are charged based on incorrect consumption values or if the allocation keys do not comply with the ordinance.

We recommend that WEG property managers in Nuremberg have the heating cost statement prepared annually by a qualified metering service provider and ensure compliance with the current Heating Cost Ordinance and the CO2 Cost Allocation Act. Many regional service providers such as Techem, Ista, or Brunata-Metrona offer corresponding service packages that include both device maintenance and billing preparation.

Are there exceptions to the Heating Cost Ordinance?

Yes. The Heating Cost Ordinance does not apply to buildings with only one unit of use, nor to buildings that meet the low-energy building standard and are exempt from the requirement according to the ordinance’s explanatory memorandum. Exceptions may also apply to certain landlord-tenant situations (e.g., social housing). Anyone unsure whether the Heating Costs Ordinance applies to their property should check with the responsible metering service provider or a lawyer specializing in tenancy law. In the overwhelming majority of apartment buildings in Nuremberg, however, the Heating Costs Ordinance is mandatory-exceptions are the exception, not the rule.

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