The mathematical formula by which the so-called share distribution in heating bills is calculated does not allow for transparency and accuracy in the reporting of individual consumption. This was stated by the Court of Justice of the European Union (CJEU) in a key decision for consumers in Bulgaria, the Lex.bg website reported.
The decision is binding on all institutions and should lead to the cancellation of the formula in its current form and its rewriting, the website states.
In its decision, the CJEU accepted that there is no problem for everyone in the block to pay for what is delivered by the pipes and installations, according to the volume of their apartment, but on condition that “the rules and parameters on the basis of which the costs charged to them for their individual consumption of heat energy for heating their apartment and for domestic hot water are calculated, guarantee the transparency and accuracy of the reporting of individual consumption“.
And in parallel with this, it found that “it seems that the mathematical formula specified in point 6.1.1 of the methodology on the basis of which the costs for heat energy consumption in buildings – condominiums, does not allow for transparency and accuracy in the reporting of individual consumption“.
The legal saga against the share distribution formula has been going on for years. The Supreme Administrative Court has annulled it, declared it null and void, and then in practice the same formula is accepted. With the latest “change“ in the formula, made in May, which was scheduled to enter into force retroactively from February 25, 2025, the SAC suspended its operation until it ruled on its legality in order to protect the public interest.
In addition, the rules for “building installation“ have not been subject to review by the Luxembourg court for the first time. In 2019, following requests from the district courts in Sofia and Asenovgrad, the CJEU accepted that a legal regulation is permissible, which provides that the owners of an apartment in a building - condominium, connected to a central heating system, are obliged to participate in the costs of heat energy for the common parts of the building and for the building installation, even though they have not individually ordered the supply of heating and do not use it in their apartment. As well as that a legal regulation is permissible, which provides that in buildings under the condominium regime, heat energy bills for the building installation are prepared for each owner of an apartment in the building in proportion to the heated volume of his apartment.
Today, the CJEU confirmed its view on the admissibility of the practice of distributing the output from the pipes and installation among everyone in the building, according to the size of the apartment.
For the first time, however, the court focuses on the formula for share distribution. It stresses that the Energy Efficiency Directive (Directive 2012/27) does not contain any requirements that such a formula must meet, but that it does require the rules for allocating costs to ensure transparency and accuracy in the accounting of individual consumption.
„However, in order for such accounting of those costs to be considered transparent and accurate, it must be carried out on an equally transparent and accurate basis, so that the final customer can, on the one hand, know exactly the amount of the costs charged to him and, on the other hand, take measures, if necessary, to adjust his personal consumption and thus comply with the objective of Directive 2012/27 of promoting better energy efficiency“, the court writes.
The conclusion states that „the requirement of transparency and accuracy also applies to the mathematical formula such as that at issue in the main proceedings, on the basis of which the abovementioned costs are calculated expenses“.