Billing of cold water costs for hot water

Blog: Cold water from the tap — Young woman pouring running purified filtered tap water into glass at kitchen for healthy drinking

Does a cost allocation method that deviates from the heating cost regulations bring more fairness?

The Cold water costs for hot water billing In practice, this often leads to discussions. According to the Heating Costs Ordinance, the cost distribution must be divided into basic and consumption-based components – both for heating and for the cold water used.

Distribution according to the Heating Costs Ordinance

Section 8 of the Heating Costs Ordinance states:

"Of the costs of operating the central hot water supply system, at least 50% and at most 70% must be distributed according to the recorded hot water consumption, the remainder according to living or usable area."

The way food is Cold water costs for hot water These costs are part of the hot water supply and therefore must be divided into basic and consumption costs. This is also the standard practice in the majority of all billing.

On the left, the standard distribution method for hot water costs, including cold water costs, according to the Heating Costs Ordinance. On the right, the alternative distribution method for cold water costs for hot water preparation, although not prescribed by the ordinance.

Why not just by consumption?

Some landlords or property managers demand a purely consumption-based distribution of the Cold water costs for hot water – with the argument that costs only arise when something is actually consumed. This sounds plausible at first, but has its pitfalls.

Two important counterarguments:

Cold water supply during hot water draw-off:
In many buildings, cold water runs for an extended period before hot water comes out of the tap. This "idle water" is recorded by the hot water meter, even though it is actually cold water. Those who use hot water earlier pay more, which is then offset by the fixed charges.
Basic utility fees:
Many municipal utilities don't calculate cold water costs solely based on consumption. Meter fees and other fixed costs are also included. Basic costs, which are incurred regardless of consumption.

Technically possible, but not practical.

Heating service providers like Brunata Minol could Cold water costs for the hot water bill It can also be divided entirely based on consumption. However, the effort increases: An additional allocation key increases complexity, creates more inquiries, and thus higher billing costs.

And finally ... A distribution based on fixed and consumption costs is not only legally required, but also makes sense for practical reasons. It ensures a fairer distribution – especially in buildings with typical hot water losses in the pipe system.

Recommendation for landlords and property managers:

Check your billing method for compliance with Section 8 of the Heating Costs Ordinance.
Avoid special solutions based solely on consumption – they complicate billing and offer no measurable advantages.
Keep in mind that also Cold water costs for hot water Fixed costs are included – these belong in the basic costs.

Author

Title page of the handbook on heat cost accounting

Quelle: Handbuch der Wärmekostenabrechnung | Frank Peters Minol Messtechnik W. Lehmann GmbH & Co. KG, 2019

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Billing of cold water costs for hot water based on consumption