- Hans Weber
- March 27, 2025
Finding Fairness in Heat and Hot Water Payments: Striking a Balance in Apartment Buildings
Many individuals burdened with high arrears often find themselves questioning why they are financially contributing to the heat and hot water consumption of other households within their apartment building, especially when they claim to have not increased their own usage. This predicament arises in scenarios where heat is centrally prepared for the entire building, and despite efforts to find the fairest solution, there will always be someone who feels disadvantaged.
Experts in the field suggest that the essential payment component for hot water in apartment buildings with remote heat should be calculated based on the apartment’s area, while the consumption component should correspond to the actual usage. Typically, the essential part accounts for 30 percent of the water cost, with the consumption component making up the remaining 70 percent. In the case of remote heat, cooperatives or associations of unit owners have some flexibility in determining the payment structure. The essential component based on apartment area can range from 30 to 50 percent, with the consumption component covering the rest, varying between 50 to 70 percent.
The question arises as to which approach is better: whether to allocate costs based on square meterage or through individual meter readings. Experts commonly recommend a 50-50 split for both components when a building is equipped solely with heat indicators that measure the consumed heat quantity. Their rationale is that even if a household does not utilize hot water or keeps their radiators turned off, they still benefit from the comfort of having these services available and should contribute to the payments.
Some individuals attempt to save money by turning off their heating and relying on their neighbors’ warmth. Implementing a payment system solely based on meter readings may serve as a more motivating factor for savings. However, opponents argue that measuring heat consumption in apartment buildings is far less precise than for electricity or gas. Additionally, one must consider the potential parasitic behavior of certain apartment units that may attempt to exploit their neighbors’ heat. The location of an apartment within the building also plays a role, as units situated under the roof or at the edges tend to have higher heat readings. The settlement methodology takes such factors into account, applying coefficients to adjust the radiator calculations accordingly.
Following the settlement period, cooperatives or associations of owners are obligated to provide households with a statement by the end of April. Residents then have thirty days to seek clarification on any discrepancies or unclear information, with a corresponding obligation for a response within thirty days.
Finding a fair and balanced approach to heat and hot water payments in apartment buildings remains an ongoing challenge. Striking a compromise between the apartment area-based essential component and the consumption component, combined with accurate meter readings and addressing potential parasitic behavior, can contribute to a more equitable system. Regular communication, transparency, and responsiveness from the cooperatives and associations involved are crucial to ensure residents’ understanding and satisfaction with the payment structure.
Article by Prague Forum
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