Guide
Understanding your heating cost statement: a guide for owners and tenants
14 September 2026MEVIO editorial teamReading time 10 minutes
Key points at a glance
- In buildings with central heating, heating and hot water costs must be allocated according to consumption — as required by the Heating Costs Ordinance (Heizkostenverordnung, HeizkostenV).
- 50 to 70 % of the costs follow the measured consumption, the rest the living space.
- Only certain operating costs may be included — repairs and purchases are not among them.
- In a tenancy: statement no later than 12 months after the end of the period, objections within 12 months of receipt.
- If billing is not based on consumption, tenants may reduce their share by 15 %.
For many people, the heating cost statement is the most opaque document of the year: units instead of kilowatt hours, basic costs and consumption costs, plus regulations with section symbols. Yet it follows a clear logic. Once you have understood it, you can follow any statement in a few minutes — and spot errors.
This guide explains step by step what the Heating Costs Ordinance requires, how the costs are allocated and what owners, property managers and tenants should look out for.
Who the Heating Costs Ordinance applies to
Legal basis · §§ 1 to 3 HeizkostenV
The ordinance applies to buildings with a central heating or hot water system and to supply with district heating — expressly including owner-occupied flats (Wohnungseigentum). It takes precedence over deviating provisions in the tenancy agreement.
This covers almost all apartment buildings and owners’ associations (Wohnungseigentümergemeinschaften). Flats with their own individual heating system are not covered: here the occupant settles directly with the supplier. An exception also applies to two-family houses in which the landlord lives — there, the parties can freely agree on how costs are allocated.
For consumption-based billing to be possible, the consumption of each unit must be measured. This is done with heat cost allocators on the radiators or with heat meters, and for hot water with hot water meters. Occupants must allow the devices to be installed.
Legal basis · §§ 4 and 5 HeizkostenV
The building owner must have consumption recorded. Newly installed devices must be remotely readable; existing devices must be retrofitted by 31 December 2026.
How a heating cost statement is structured
Every heating cost statement answers the same question: which part of the costs of the whole building is attributable to an individual flat? To do this, it works from top to bottom in five steps.
- 1Total costs of the buildingFuel, operating electricity, maintenance, metering service, etc.
- 2Split between heating / hot waterfor a shared system, under § 9 HeizkostenV
- 3Basic costs and consumption costsby floor area and by recorded consumption
- 4Share of your flatYour floor area and your consumption units
- 5Comparison with advance paymentsresults in an additional payment or a credit
Since the 2021 amendment, the statement must also contain a range of information that helps occupants put their consumption into context: a comparison with the previous year, a comparison with an average occupant, details of the fuel mix used and the taxes and levies it contains, as well as contact details of consumer organisations and arbitration bodies.
Legal basis · § 6a HeizkostenV
With remotely readable devices, occupants must additionally be provided with consumption information every month — not only with the annual statement.
Basic costs and consumption costs
The core of the statement is the split into two pots. Part of the costs arises regardless of how much heating is used — for example because the building loses heat through pipes and walls. These basic costs are allocated according to living space. The other part, the consumption costs, follows the measured consumption.
Legal basis · § 7 Abs. 1 HeizkostenV
At least 50 and at most 70 per cent of the heating costs must be allocated according to the recorded consumption, the remaining costs according to the living or usable floor area.
At least 50 per cent of the heating costs are allocated by consumption, at least 30 per cent by floor area; the building owner decides on the middle 20 per cent.
Which key makes sense depends on the building. In well-insulated buildings, the residents’ behaviour has a greater influence on costs; there is a strong case for a high consumption share there. In poorly insulated buildings with high pipe losses, a higher floor-area share can be fairer. Once the key has been set, it can only be changed in certain cases — for example after structural measures that permanently reduce the heat demand — and only at the start of a billing period (§ 6 Abs. 4 HeizkostenV).
Which costs may be passed on
The Heating Costs Ordinance lists exhaustively which costs count as heating costs. Anything else may not be allocated via the heating cost statement.
Allocable (§ 7 Abs. 2 HeizkostenV)
- Fuel including delivery
- Operating electricity of the heating system
- Operation, monitoring and care
- Regular inspection and adjustment by a specialist
- Cleaning of the system and the boiler room
- Measurements under the Federal Immission Control Act (Bundes-Immissionsschutzgesetz)
- Rental or use of the metering devices, calibration
- Reading, calculation and allocation, consumption information
Not allocable
- Repairs and restoration work
- Purchase or replacement of the heating system
- Purchase of meters and heat cost allocators
- Administration costs
- Reserves for future measures
A common source of error is repair invoices from the heating engineer that are billed together with maintenance. Only the maintenance share is allocable — the rest is borne by the owner.
Worked example
A simplified example shows how the figures are made up. The building has heating costs of €24,000.00 a year and allocates 70 per cent of them according to consumption.
- Heating costs of the building
- €24,000.00
- Allocation
- 70 % consumption / 30 % floor area
- Total basic costs → per m²
- €7,200.00 → €4.50
- Total consumption costs
- €16,800.00
- Your flat
- 80 m², 5.5 % of the consumption units
- Heating costs of your flat
- €1,284.00
- minus advance payments
- − €1,200.00
- Additional payment
- €84.00
Basic costs of €360.00 plus consumption costs of €924.00 come to €1,284.00; after deducting the advance payments, there is an additional payment of €84.00.
The consumption values of the heat cost allocators are not kilowatt hours but units that are only comparable within the building. What matters is the share: what percentage of all units recorded in the building is attributable to your flat?
Hot water, device failure and change of tenant
Hot water. The same rule applies to the costs of hot water as to heating: 50 to 70 per cent by consumption, the rest by floor area. If one system produces both, the total costs are first split between heating and hot water — preferably using a heat meter, otherwise according to a formula in the ordinance.
Legal basis · §§ 8 and 9 HeizkostenV
Hot water costs are likewise allocated 50 to 70 per cent according to consumption. For combined systems, the share of heat used for hot water must in principle be measured with a heat meter.
Device failure. If a meter fails or a reading is not possible, consumption is estimated — on the basis of earlier periods or comparable rooms. If more than a quarter of the floor area is estimated, the entire statement must be prepared by floor area. Remotely readable devices make such cases rare, because failures are noticed immediately.
Change of tenant. If a tenant moves out during the year, an interim reading is taken. The consumption costs are split according to the readings, the basic costs according to the duration of the tenancy.
Legal basis · §§ 9a and 9b HeizkostenV
Estimation if a device fails; allocation by floor area if 25 per cent or more of the floor area is estimated. When occupants change, an interim reading, or alternatively a pro rata temporis split.
Deadlines and objections
The Heating Costs Ordinance governs how costs are allocated. When the statement must be provided and how long tenants can object is determined by tenancy law.
- 1 Jan – 31 Dec 2025Billing periodConsumption is recorded, costs are incurred.
- by 31 Dec 2026Statement to the tenantNo later than 12 months after the end of the period.
- 12 months from receiptObjection periodTime for checking, inspecting documents and objecting.
If the landlord misses the billing deadline through his own fault, any additional claim lapses. The tenant is nevertheless entitled to any credit balance.
Legal basis · § 556 Abs. 3 BGB
The statement must be sent to the tenant no later than the end of the twelfth month after the end of the billing period. The tenant must raise objections no later than the end of the twelfth month after receiving the statement.
In an owners’ association, the heating cost statement is part of the annual statement on which the owners vote. For owners who let their flat, this means: the earlier the association’s annual statement is available, the more easily the deadline towards the tenant can be met.
Reduction rights
If the landlord does not comply with the Heating Costs Ordinance, the tenant can reduce their share of the costs. This is not a fine but a flat-rate compensation — and in practice an effective lever.
Legal basis · § 12 HeizkostenV
The occupant’s right to reduce by 15 per cent if billing is not based on consumption, and by 3 per cent in each case for breaches of the obligations regarding remote readability and information.
Checklist: checking your statement
With these questions, you can check a heating cost statement quickly:
- Is the billing period correct, and was the statement provided within the deadline?
- Has the correct living space been used — for the flat and for the building?
- Does the allocation key correspond to 50 to 70 per cent by consumption?
- Are the meter readings plausible and consistent with your own notes?
- Do the total costs contain only allocable items — no repairs?
- Have all advance payments been taken into account?
- Are the previous-year comparison, the average comparison and the fuel details included?
- For fossil fuels, is the CO₂ cost split shown?
Our article CO₂ cost allocation: what landlords and tenants each pay explains more about how CO₂ costs are split.
Heating cost billing for your property
Send us the number of residential and commercial units and your latest heating cost statement. You will receive a quote with a comparison against your current costs.
This article is for general guidance only and does not replace legal advice in an individual case. As of: September 2026.
Frequently asked questions
Heating cost statements — answered briefly
Which buildings does the Heating Costs Ordinance apply to?
To buildings with at least two units that are supplied jointly by a central heating or hot water system or by district heating — in other words, to most apartment buildings and owners’ associations. An exception applies to two-family houses in which the landlord lives in one of the flats: there, the parties can freely agree on how costs are allocated.
How much of the heating costs must be allocated according to consumption?
At least 50 and at most 70 per cent. The rest is allocated according to the living or usable floor area. In certain older buildings heated with oil or gas and with predominantly insulated pipes, 70 per cent is mandatory. A higher consumption share may also be agreed by contract.
By when must the heating cost statement be provided?
In a tenancy, no later than twelve months after the end of the billing period (§ 556 Abs. 3 BGB). If it arrives later and the landlord is responsible for the delay, he can no longer demand any additional payment. He must nevertheless pay out any credit balance.
How long do I have to raise objections to the statement?
Tenants have twelve months from receipt of the statement to do so. Within this period, they can also ask to inspect the supporting documents, such as the fuel invoices and the meter readings.
What happens if a meter fails?
Then consumption is estimated, for example on the basis of the previous year’s values or comparable rooms. If the estimate affects more than a quarter of the building’s floor area, all costs must be allocated by floor area instead of by consumption.
How is billing handled when tenants change?
The landlord has an interim reading carried out when the tenant moves out. The consumption costs are split on the basis of these readings, the basic costs pro rata temporis. If an interim reading is not possible, consumption is also split using degree-day figures or pro rata temporis.
When may tenants reduce the heating costs?
By 15 per cent if billing is not based on consumption. By 3 per cent in each case if, despite the obligation, no remotely readable devices are installed or the required billing and consumption information is missing.