Distribution key in the heating cost statement

Professional recommendations for property managers and landlords on the correct selection of the percentage for basic costs and operating costs.

Why is the allocation key important in the heating cost statement?

Landlords and property managers must choose a suitable allocation key for heating cost statements. According to the German Heating Costs Ordinance (HKVO), heating and hot water costs may not be distributed entirely according to consumption. There is always a basic cost component that takes into account costs independent of consumption and is usually divided according to living space.

The allocation key determines the proportion of consumption-based and fixed costs. According to Sections 6 and 7 of the German Heating Cost Ordinance (HKVO), this proportion ranges between 50 and 70 percent consumption-based distribution. The decision rests with the owner, within the legal framework.

Special case 30:70

A 30:70 split is only mandatory under certain conditions, if the building:

• do not meet the requirements of the 1994 Thermal Insulation Ordinance,
• is heated with oil or gas
• predominantly insulated exposed pipes

All three conditions must be met simultaneously This requirement must be met. According to Brunata Minol, this applies to an estimated 2,5% of all existing buildings. Nevertheless, the 30:70 distribution key is often applied prematurely, usually under the assumption that it is fairer. This can lead to incorrect decisions.

Why are basic costs necessary in the heating bill?

A purely consumption-based billing approach would be technically incorrect. Basic costs cover key factors:

1. Fixed costs of the heating system

A significant portion of heating costs is incurred regardless of actual consumption. These include, among other things:

• Maintenance and repair of the heating system
• Cleaning and chimney sweeping fees
• Calibration and reading of the measuring instruments
• Preparation of the heating cost statement
• Basic prices for natural gas, district heating or other energy sources

These fixed costs are incurred even if an apartment is hardly or not at all heated. A basic cost component ensures that these expenses are distributed fairly among all users.

2. Technically induced heat losses

Even with modern heating systems, significant amounts of energy are lost on the way from the boiler to the radiator.

• With oil and gas heating systems, losses in the building often amount to 20 to 40%.
• With district heating, losses occur primarily in generation and supply.
• Losses are sometimes even higher in hot water preparation: 40 to 60%

These energy losses cannot be attributed to individual consumption, but must be taken into account via the basic costs.

3. Influence of the residential location within the building

The heating requirement depends heavily on the location of the apartment:

• Interior apartments benefit from the thermal insulation provided by adjacent apartments
• Corner apartments or apartments under the roof More heat is lost through exterior walls.

A reasonable share of basic costs, for example with a 50:50 allocation key, partially compensates for location-related disadvantages. This ensures that residents in less favorable locations do not have to bear disproportionately high costs.

More on the influence of location on heating costs

Example of specific heating requirements for apartments in multi-family buildings, depending on their location within the building. Source: Minol

4. Heat transfer between apartments (transmission heat)

Heat "migrates" within a building, regardless of the heating behavior of the residents:

• Heated apartments release heat to neighboring, colder apartments.
• Especially with thinner inner walls, the effect can be up to 40%.

A higher share of utility costs disadvantages tenants whose neighbors heat little or not at all. The fixed cost component compensates for this and reduces imbalances caused by so-called... Transmission heat.

5. Energy-efficient buildings: Lower consumption = higher fixed cost share

In well-insulated new buildings with low heating loads, individual energy consumption decreases – but not fixed costs:

• The plant costs remain constant.
• The influence of user behavior on energy consumption is decreasing.

This means that a high proportion of consumption costs would lead to significantly different costs in such buildings, no longer reflecting user behavior. Therefore, the allocation key in heating cost statements for modern buildings is often different. with a higher basic cost component more sensible.

What is the recommended distribution key?

In practice, the Distribution key 50:50 It has proven effective. It takes into account both individual consumption and unavoidable, collectively incurred costs. Especially in modern buildings, this is often the fairest and most comprehensible compromise.

A greater weighting of the consumption share often leads to large differences within a building – especially in energy-efficient buildings. This can negatively affect the tenants' sense of fairness.

Conclusion on the allocation key in heating cost billing: 50:50 is often the best choice!

Carefully check whether the conditions for a 30:70 allocation are actually met. It is only mandatory if these conditions are fulfilled. Otherwise, landlords have discretion in choosing the allocation key.

Communicate your decision and the reasons for it clearly and comprehensibly to your tenants. Transparency builds trust and prevents misunderstandings.

Brunata Minol generally recommends – apart from a few special cases according to the Heating Costs Ordinance – a distribution key of 50% basic costs and 50% consumption costs. An excessively high consumption share can lead to large differences between individual apartments, especially in energy-efficient new buildings, which are often not perceived as fair by the residents.

Nevertheless, consumption-based heating bills remain an important incentive for energy saving – regardless of the building type. This is also confirmed by the largest nationwide study A study on energy efficiency in buildings, conducted by the Institute of Energy Technology at TU Dresden under the direction of Prof. Dr. Clemens Felsmann in 2013, shows that the better insulated a building is, the less attention users pay to their heating habits. Therefore, the study explicitly advocates for billing based on actual usage, even in highly energy-efficient buildings – not least because of its measurable contribution to reducing CO₂ emissions.