Everything you need to know about the rules for allocating heating costs (Heating Costs Ordinance)

What is the Heizkostenverordnung?

The Heizkostenverordnung is a federal regulation that governs how heating and hot water costs are calculated and allocated in multi-occupied buildings.
Its main purpose is to encourage residents to consume energy responsibly and to ensure that costs are distributed fairly in line with actual consumption.

How are the costs distributed?

According to the law, heating and hot water costs are usually distributed as follows:

• 50% to 70% based on the actual consumption of each flat (according to meters or heat cost allocators).

• 30% to 50% based on the floor area of the flat or another fixed key, as a basic share that covers general heating and heat losses in the pipes.

The exact percentages may be agreed in the tenancy agreement or in a joint heating agreement, but they must remain within these legal limits.

Why this mixed distribution?

This mixed system is designed to ensure that fixed heating costs (such as operating the heating system itself) are covered, while at the same time rewarding tenants who use heating carefully and keep their consumption low.

What must a heating cost statement (Heizkostenabrechnung) include?

A heating cost statement (Heizkostenabrechnung) should include:

• The total heating costs for the building.

• The tenant’s share of the fixed and variable costs.

• The meter readings (or allocator readings) for each flat.

• A comparison with the advance payments (Vorauszahlungen) made by the tenant.

Does the tenant have the right to object?

Yes.
The tenant has the right, within one year of receiving the statement, to inspect all underlying original invoices and documents and to lodge an objection if they identify errors in the allocation or meter readings.

What about flats without meters?

In exceptional cases (for example, in old buildings where installing meters is technically very difficult), costs may be distributed solely on the basis of floor area.
However, the landlord is obliged to install meters if and when this becomes technically and economically feasible.

Tenants’ rights

• To request a detailed explanation of the statement from the landlord or property management.

• To consult a tenants’ association (Mieterverein) or a legal expert in case of doubt.

• To challenge unjustified additional payments or demands based on incorrect estimates or calculations.

Practical tips

• Compare your annual consumption with previous years to detect unusual changes.

• Check the condition of the meters and make sure that readings have been taken correctly.

• Do not hesitate to request copies of all supporting documents and invoices.

• Heat and ventilate your home regularly and properly to reduce consumption and avoid mould growth.

Conclusion

The rules on the allocation of heating costs (Heizkostenverordnung) in Germany are intended to ensure a fair distribution of costs and to promote conscious energy use. Knowing the details of these rules helps tenants protect themselves from excessive charges and keep their housing budget within reasonable limits.

The editorial team of the website strives to provide accurate information based on intensive research and various sources. Nevertheless, errors may occur or certain details may be incomplete or not fully verified. The information in these articles should therefore be regarded as an initial point of reference, and you should always contact the competent authorities or qualified professionals for binding, reliable information.