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Heating-cost statement: how costs are split and when you can deduct

For heating and hot water, your own consumption drives most of the bill, and a landlord who skips the rules loses real money.

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Your right to cut heating costs

You may cut by

€27

Total cut3 %
Payable€873
Split the CO2 costs →

In buildings with central heating, the German Heating Costs Ordinance (Heizkostenverordnung, HeizkostenV) requires at least 50 and at most 70 per cent of heating costs to be split by metered consumption, with the rest split by floor area (Section 7). In a building with €18,000 of heating costs, a flat with 72 of 960 m² and 9 per cent of the consumption pays €1,485.00 under a 50/50 split and €1,539.00 under 70/30. If the landlord does not bill by consumption as the ordinance requires, you may cut your share by 15 per cent (Section 12(1)). If the monthly usage report is missing, compulsory with remotely read meters since January 2022, the cut is 3 per cent. A further 3 per cent is allowed under Section 7(4) of the Carbon Cost Allocation Act (CO2KostAufG) if the CO2 cost split is missing. On a share of €1,539.00, a missing usage report plus a missing CO2 split together mean €92.34 less to pay.

How Section 7 of the ordinance splits the bill

The Heating Costs Ordinance applies to buildings with central heating or supplied heat, such as district heating or contracting. It overrides the lease: whatever your contract says, Section 7(1) HeizkostenV requires at least 50 % and at most 70 % of costs to be split by metered heat consumption. The rest, the basic costs, is split by living or usable floor area or by enclosed volume; the landlord may also use only the area of heated rooms. In older buildings heated by oil or gas that fall short of the 1994 Thermal Insulation Ordinance and whose exposed pipes are mostly insulated, the consumption share is fixed at exactly 70 %.

Section 7(2) lists what heating costs include: fuel and delivery, power used to generate heat, operating power, operation, supervision and care, inspection and adjustment by a specialist, cleaning of the system and boiler room, emission measurements, rental and calibration of meters, and the costs of billing and usage reports. Repairs are not included.

Example: what the consumption share changes

A building of 960 m² uses €18,000 of heat a year. The flat has 72 m², 7.5 % of the area, but 2,700 of 30,000 metered units, 9 % of consumption.

Heating share of a flat with above-average consumption
Splitby consumptionby areaFlat’s share
50 % / 50 %€810.00€675.00€1,485.00
70 % / 30 %€1,134.00€405.00€1,539.00
area only (not allowed)€1,350.00€1,350.00

Heavy users pay more under a high consumption share; careful users gain. The last row shows why a pure area split penalises thrifty neighbours and is therefore banned. On your own statement, check which percentage was used, whether your metered units match your reading record or monthly report, and whether the building total looks plausible.

Monthly usage reports under Section 6a

Where remotely readable meters or heat cost allocators are installed, the owner has had to tell you every month since 1 January 2022 how much you used (Section 6a HeizkostenV). The report must include at least:

  • your consumption last month in kilowatt hours,
  • a comparison with your previous month and with the same month last year, where the data were collected,
  • a comparison with a standardised or benchmarked average user of the same category.

With the annual statement he must also give you information on the mix of energy sources, taxes and levies charged, fees for meters, reading and billing, and contact details of consumer organisations and energy agencies (Section 6a(3)). For district heating this includes the network’s greenhouse gas emissions and primary energy factor.

Your right to deduct

The ordinance enforces itself through deductions: a landlord who skips a duty loses money from the statement. Section 12(1) HeizkostenV has two levels. If costs are not billed by consumption as required, you may cut your share by 15 %. If the owner has failed to fit remotely readable devices as Section 5(2) or (3) requires, or does not provide the Section 6a information in full, the cut is 3 %. On top comes a separate right in Section 7(4) CO2KostAufG: 3 % of your heating share if the landlord does not split CO2 costs or does not show the classification and calculation basis.

Deductions on a heating share of €1,539.00
CaseDeductionAmountLeft to pay
statement complete0 %€0.00€1,539.00
monthly consumption information missing3 %€46.17€1,492.83
CO2 split missing3 %€46.17€1,492.83
both missing6 %€92.34€1,446.66
not billed by consumption15 %€230.85€1,308.15

The deduction rights sit in different provisions and attach to different failures; the small calculator above adds them up where several apply. Announce the deduction in writing, giving reason and amount, and take it off any balance due or claim it on top of a credit. The twelve-month objection period after receipt applies here too, as explained on the service-charge statement page.

CO2 costs in the heating statement

Since 2023, landlord and tenant share the CO2 levy on oil and gas according to a ten-step model: the worse the building, the more the landlord bears. The statement must show your share, the building’s step and the calculation basis. The 3 % deduction is often worth less than a correct split, because in a poorly insulated building the landlord carries a large part of the CO2 cost. So run both through the CO2 cost calculator and claim the higher figure.

Heat pumps are a special case: where their consumption was not yet metered, the owner had to install meters by 30 September 2025, and the ordinance then applies from the next billing period (Section 12(3)). If your heating statement ends in a balance to pay, continue with the service-charge top-up page.

Frequently asked questions

What share of heating costs must follow actual consumption?

Between 50 and 70 per cent; the landlord picks the figure within that range. Exactly 70 per cent is mandatory in older oil- or gas-heated buildings that do not meet the 1994 insulation standard and whose exposed pipes are mostly insulated. The remainder is split by floor area or by enclosed volume, as Section 7(1) of the Heating Costs Ordinance sets out.

What must the monthly heating usage report contain?

Under Section 6a(2) of the ordinance, at least your consumption in the last month in kilowatt hours, a comparison with the previous month and with the same month a year earlier where data exist, and a comparison with a standardised or benchmarked average user of the same category. The duty applies once remotely readable meters or heat cost allocators are installed. If it is missing, Section 12 gives you a separate right to deduct.

How much can I deduct if heating is not billed by consumption?

15 per cent of your share, under Section 12(1), first sentence, of the ordinance. This applies where meters are missing, were not read, or the landlord ignored them and split everything by area. On a share of €1,539.00 that is €230.85. Tell the landlord in writing, then deduct the amount from any balance due or claim it back.

What can I do if the CO2 costs are not shown on my heating bill?

The landlord must show your share of CO2 costs, the building’s classification and the basis of calculation in the heating statement (Section 7(3) CO2KostAufG). If he does not, you may reduce your heating share by 3 per cent, €46.17 in our example. The CO2 cost calculator shows how much the landlord should have borne; that is often more than the deduction.

Do these deduction rights apply if I rent a condominium flat?

Yes, between you and your landlord. Section 12(1), fourth sentence, only excludes the relationship between an individual flat owner and the owners’ association (Wohnungseigentümergemeinschaft). If the association bills your landlord without consumption metering, he cannot deduct against the association, but you can still deduct against him.

Why is part of the heating bill split by floor area?

Because not all the heat the boiler produces reaches individual flats: pipes in the cellar and stairwell give off heat, and a flat with cold radiators is still warmed by its neighbours. The area-based part, the fixed or basic costs (Grundkosten), reflects this shared heat. The higher the consumption share, the more it pays to heat sparingly.

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