Sub-metering in apartment buildings

The new law introduces an obligation for the owner of a residence in a apartment complex to install thermal energy meters for heating, cooling and domestic hot water for each unit in the building, insofar as this is technically feasible and economically justified. In addition, the law requires landlords to provide precise monthly information to tenants/occupants on their consumption of heat, cooling and hot water, as well as the total amount invoiced.

The law does not introduce any new obligations for tenants.

The law introduces several new rights benefiting tenants, namely access to detailed information on their consumption of heat, cooling, and domestic hot water, as well as details on the invoice, to be provided by the landlord.

These data are based on the actual consumption measured by individual meters. It enables tenants to control and monitor their energy consumption and, if necessary, adapt their behaviour to save energy and thus reduce their energy costs.

The party responsible for installing the meters must provide tenants with the appropriate user instructions from the meter manufacturer, in particular on the display settings and how to monitor energy consumption.

• In buildings equipped with individual meters that can be read remotely, tenants receive a monthly assessment report free of charge, at least once a month. This report contains details of invoicing and consumption based on their actual consumption or the data provided by the heating cost allocators. In the case of condominiums (joint ownership), the building management body (syndic) forwards this statement to the co-owners, who then pass it on to the tenants as soon as possible.
• If the individual meters cannot be read remotely, the results of the monthly readings of the individual meters or heating cost allocators are communicated to the tenants within two months of reading.

At least once a year, the owner will send the tenant a notice providing information on their individual consumption of heat, cold and domestic hot water. 

• The installation of individual meters by the landlord is only compulsory if it is technically feasible and economically justified, i.e. proportional to the energy savings likely to be made. The landlord checks this before installing the meters and informs the tenant by means of a written note specifying the reasons.
• If individual meters are to be installed, the owner will inform the occupants by means of a metering plan (a document showing schematically the location of all the meters).

Yes, in the event that individual meters are not installed and the tenant has not been provided with the relevant justification, or the metering plan, within the time limits imposed by law.

The owner is only under a legal obligation to install individual meters if it is technically feasible and economically justified, i.e. proportionate to the energy savings likely to be made. The landlord must ascertain this before installing the meters and inform the tenant. The costs of installing individual meters are shared between the owners in accordance with the terms of the co-ownership agreement. Where applicable, landlords may include these costs in the rent, in compliance with the terms and conditions set out in the legal framework for residential leases¹.

The tenant is not responsible for any costs that may arise from the preparation and provision of the evaluation reports and periodic information on consumption. Only the costs resulting from assigning this task to a third party, such as a service provider or the energy supplier, may be charged to the occupants, insofar as these costs are deemed reasonable.

¹ Loi modifiée du 21 septembre 2006 sur le bail à usage d’habitation

The general rules on the protection of personal data apply, i.e. no one may consult, export or process energy consumption data collected via individual meters or heating cost allocators without the prior consent of the respective tenant, unless the processing or disclosure to a third party is authorised by a legal or regulatory provision or the information is transmitted to a sub-contractor acting on behalf of the party responsible for processing the collected consumption data.

Apart from a few exceptions, e.g. where it is technically impossible or would entail excessive costs, it must be possible to read the individual meters without entering the private units.

Meters installed after the law comes into force must be remotely readable.

• Obligation to install and guarantee the correct operation of meters,
• Obligation to regularly transmit the data collected and processed to the occupants,
• Obligation to draw up a metering plan and keep it up to date,
• Obligation to comply with the technical requirements for measuring equipment in terms of readability at a distance,
• Obligation to inform tenants/occupiers of the obligation to install metering and control equipment,
• Obligation to inform the tenant/occupier about consumption and billing.

The owner, or the building management body, is responsible for:

• prior verification of technical feasibility and cost-effectiveness, i.e. whether the installation of meters is proportionate to the energy savings likely to be achieved,
• where applicable, the installation of sub-meters, heating cost allocators and control devices¹. 

¹ For more details, please consult the law on sub-metering and cost allocation for heat, cooling and domestic hot water.

The choice of equipment to be installed is up to the owner or, where applicable, the co-owners' association, provided that it meets the technical requirements laid down by law (particularly in terms of readability from a distance).

The costs of installing individual meters are shared between the owners in accordance with the conditions set out in the co-ownership regulations. These costs may be passed on to the rent in accordance with the conditions set out in the legal framework for residential leases².

When the heat or cold emitters are fitted with control devices that allow the temperature inside the room to be modulated, the costs are at the charge of the owner of the private unit concerned.

² Loi modifiée du 21 septembre 2006 sur le bail à usage d’habitation

The installation of individual meters must be economically justified and technically feasible, and this is checked beforehand by the owner, who informs the tenants.
The law provides for the following exceptions:

1. Accommodation facilities
2. Heating and cooling circuits where such an installation is not technically feasible³
3. Heating and cooling circuits in buildings where heating or cooling consumption is below a certain threshold⁴
4. Heat circuits in buildings with an energy performance certificate thermal insulation class better than class E (i.e. classes A+, A, B, C and D)
5. Sub-metering of internal circuits for which the owner or, where applicable, the co-owners' association, demonstrates that it is technically impossible to install individual meters.
6. Sub-metering of internal heating and cooling circuits where the owner or co-owners' association can justify that the installation of individual meters would entail excessive costs in relation to the energy savings likely to be made⁵.

It should be noted that technical infeasibility does not apply to domestic hot water in new buildings. 

 ³In cases specified by the implementing Grand-Ducal regulation
 ⁴Established by the Grand-Ducal regulation
 ⁵New buildings for which planning permission is sought after 20 October 2020

Where there is no obligation to install sub-meters based on the exceptions (cases illustrated in question 5), it is compulsory to install heating cost allocators on each radiator to measure its heat consumption.

This rule does not apply to buildings for which the owner or the building management body justifies that the installation of heat cost allocators on each radiator would entail excessive costs in relation to the energy savings likely to be made or is technically impossible for reasons and in cases specified by Grand Ducal regulation.

In these cases, the costs are apportioned according to the thousandths of the individual housing units.

Landlords shall provide tenants of private units equipped with individual meters or, where applicable, heating cost allocators, with the following information:

1. Information and advice on use from the manufacturer of the appliances, in particular on the possibilities they offer in terms of displaying and monitoring energy consumption;
2. Information required under data protection and privacy legislation;
3. The possibility of opting for digital transmission or, where appropriate, transmission via a secure personal space on the Internet of the monthly assessment note and information relating to billing or consumption; 
4. If the data is transferred via secure personalised portal online, information and advice on how to use this dashboard. 

The correct operation of meters must be guaranteed by regular calibration, in accordance with the manufacturer's instructions, and by replacing the battery or the device within three months of detecting a fault.

The owner or, in the case of condominiums, the managing agent, must draw up a metering plan before installing the compulsory metering equipment in existing apartment blocks, and in cases where planning permission was granted before this law came into force.

Metering plans, which show schematically the location of all meters, are kept up to date and adapted whenever new meters are installed or the distribution between units changes.

Each update to the metering plan is sent by the owner to the tenants/occupiers of the private units. In the case of condominiums, it is sent by the property manager to the co-owners, who then pass it on to the occupants of their respective units.

Heating meters and heat cost allocators installed after the entry into force of this law must be readable from a distance⁶.  

Devices installed before the entry into force of this law are made remotely readable or are replaced by remotely readable devices no later than 1er January 2027.

The requirement for legibility at a distance is not applicable in the event of technical impossibility or disproportionate costs.

⁶This requirement does not apply to a sub-meter or heat cost allocator that has been replaced as part of a sub-metering system whose devices must be of the same manufacturer and type in order to comply with national or European requirements.

In buildings equipped with individual meters that can be read remotely, the owner provides the occupants of the private units with a monthly assessment note. This note contains billing or consumption information, based on actual consumption or readings from heating cost allocators⁷.

The costs associated with the preparation and communication of assessment notes and regular information on consumption are borne by the owner. Only the costs resulting from assigning this task to a third party, such as a service provider or the local energy supplier, may be charged to the occupants, insofar as these costs are reasonable.

⁷For more details, please consult the law on sub-metering and cost allocation for heat, cooling, and domestic hot water.

The owner is responsible for processing the consumer data collected, as well as any personal data derived.

No one may consult, export, or process the data collected without the occupier's consent, unless the processing or disclosure to a third party is authorised by a legal or regulatory provision or the information is transmitted to a sub-contractor acting in the name of and on behalf of the data controller.

If the compulsory metering equipment is not installed and the relevant reasons are not given, the charges for the consumption of heat, cooling and domestic hot water arising from the billing of a collective building and invoiced by the landlord to the tenant of a private area are not automatically considered to be justified and due.

Fines of between €1,000 and €10,000 can be imposed for failure to install and comply with legal obligations.