Practical guide to Royal Decree 736/2020

Accounting for individual consumption in building thermal installations

1. When does the Royal Decree come into force and which Directives does it transpose?

The Royal Decree came into force on August 7, 2020, the day after its publication in the BOE (Official State Gazette). This RD transposes European Directives 2012/UE/27 and 2018/2002, focused on improving energy efficiency and individual accounting of consumption.

2. What does the new regulation require?

The regulations require all buildings with a centralized heating and/or cooling system to install energy meters and, if this is not technically feasible (when the heating distribution is by columns), cost allocators, with the aim that each resident pays for their actual consumption of heating and/or cooling. In these communities, distribution by coefficient will no longer be authorized.

3. Will the installation of thermostatic valves be mandatory, as well as carrying out actions on the hydraulic balancing of the installation?

The Royal Decree determines that each home must have some regulation system that allows controlling consumption, whether manual or automatic. Therefore, the type of system is not specified in the regulations, so that, although its installation is recommended, it is not mandatory.

4. What type of measurement devices does the Royal Decree allow?

Since the entry into force of the RD, the only valid accounting systems are energy meters and cost allocators. Any other system, such as hour meters that are currently installed in many communities, are not allowed and must be replaced.

5. Which buildings are excluded from the obligation to install cost allocators or meters?
Those that are in climatic zones A and B (basically the Canary and Balearic Islands and the areas of the Mediterranean coast) are excluded.

Buildings located in zones C, D or E and that have a heating distribution system by radiators (in a ring or in columns) will be subject to the obligation unless it is demonstrated, after submitting a budget (included in Annex II of the RD), that the installation of meters/cost allocators is not profitable.

Investments that have a payback period of less than 4 years are considered profitable.

Those buildings within these zones that have a heating system that does not allow measurement (single-pipe series radiators, air conditioning, steam transmitters, etc.) are exempt.

6. How long do buildings have to adapt to the standard?
The deadlines for the installation of meters depend on the Climate Zone in which the building is located.

The RD also establishes that the communities of owners must install individual heating meters or cost distributors by remote reading. The deadline to request a quote from an authorized installer is shown in the following table:

7. Who can install meters/distributors?
Companies accredited as maintainers or installers of thermal installations.
8. Will there be fines?

Yes. Article 10 of the Royal Decree establishes the applicable sanctioning regime. The fines will be between €1,000 and €10,000 if the provisions of the Royal Decree are not complied with, with the autonomous communities being responsible for inspecting and fining, where appropriate.

The owner (Community of Owners or the owner of the building) is responsible for complying with the provisions of the Royal Decree.

9. Reading, consumption management and cost distribution
Once the Community of Owners, after presenting the installation budget and subsequent installation of the meters contemplated in the RD, these must be managed, either by the owner or by a specialized company. This management includes reading the devices, guaranteeing their proper functioning, calculating the real consumption of each home, carrying out periodic individual settlements, etc.

The minimum frequency with which residents will receive settlements will depend on whether the meter is remote reading or is still manual reading.

The individual heating settlements that each resident receives must have a fixed component (distribution of common building costs, such as boiler maintenance, heating of common areas, losses, etc.) and a variable component, which is the one that will depend on the consumption that each resident makes in their home. The Royal Decree places this variable component between 60% and 75% of the total heating cost.

Whoever performs the task of managing and settling individual consumption must meet certain requirements: have a free virtual office, install and be able to manage devices with remote reading and include all the information required in their settlements, in accordance with the provisions of the RD.

The devices must be remote reading in 2027:

10. Information that the individual heating settlement must contain

Document download

PRACTICAL GUIDE OF THE ROYAL DECREE

Explanatory Guide to Royal Decree 736/2020 on accounting for individual consumption in building thermal installations

ROYAL DECREE

Official text of Royal Decree 736/2020 on accounting for individual consumption in building thermal installations

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