Association of Unit Owners in 2027: New Energy Metering, Billing and Accounting Obligations

2.4.2026 | ARROWS law firm

The year 2027 brings significant changes in energy legislation and accounting for homeowners’ associations (SVJ). From January, obligations in the area of energy metering and billing will fully take effect, which means new administrative tasks and the risk of sanctions for SVJ chairpersons. This article summarises the key obligations and advises how to prepare for the new requirements in time.

The illustrative image shows a specialist discussing the topic of amendments to the energy legislation applicable to homeowners’ associations (SVJ).

New obligations to inform owners about energy consumption
Energy Performance of Buildings Directive: Reality vs. myths
Heating system inspections
New Accounting Act: What is being prepared
FAQ: Most common questions on financing and decision-making

Key takeaways:

Remote meter readings: As of 1 January 2027, all heat and hot water meters in buildings with central supply or central heating must be equipped with remote reading functionality; non-compliance is an administrative offence with the risk of a fine.
Consumption information: Homeowners’ associations (SVJ) must provide owners with remote meters with consumption information at least once a month; from 2027, this obligation will apply to virtually all buildings.
Energy performance: introduces pressure to reduce the average energy consumption of the residential building stock. Although the blanket obligation to renovate individual buildings has been softened, buildings in classes F and G will face pressure to modernise.
Accounting: The upcoming new Accounting Act is intended to modernise reporting rules, digitisation and the categorisation of accounting entities, which will also affect SVJ administration.

Remote meter readings: An obligation that cannot wait

Act No. 406/2000 Coll., on Energy Management, in conjunction with Act No. 67/2013 Coll., sets a clear deadline. By 31 December 2026, all designated heat meters and allocators that have not yet been remotely readable must be replaced or upgraded.

From 1 January 2027, it will no longer be legally permissible under Czech law to operate, in apartment buildings with a central source of heat or hot water, meters that require physical entry into the apartment to take a reading.

Remote reading is defined as a system that makes it possible to read measured values without the need to access individual apartments or non-residential premises, typically at a distance greater than 250 metres. Walk-by systems may no longer be sufficient for new installations to meet the obligation of frequent information provision.

Practical risks and fines

Failure to comply with this obligation constitutes an administrative offence. The State Energy Inspection (SEI) monitors compliance with the Energy Management Act. Failure to install designated meters or to equip them with remote reading functionality may result in a fine in the tens to hundreds of thousands of Czech crowns.

Many SVJs still do not realise that exemptions from this obligation are very limited and apply only in cases of technical infeasibility or economic inefficiency. If an SVJ cannot document objective reasons why it did not carry out the replacement, it exposes itself to sanctions.

How to prepare: Practical steps

An SVJ should promptly review its contracts with billing/consumption allocation providers and the condition of the meters. In practice, it is also useful to have specific guidance on modifications in apartment buildings at hand, for example in the article apartment alterations without a permit: what can be done without notification/permit and when a project is already required. If the meters are not remotely readable and their service life ends only after 2027, they must still be replaced or retrofitted with a radio module by the end of 2026.

It should be borne in mind that the costs of acquiring meters are usually borne by the unit owner, but the organisation of the replacement is ensured by the SVJ. The lawyers at ARROWS, a Prague-based law firm, can help you review the bylaws and works contracts with metering technology suppliers so that it is clear who bears the costs and responsibility.

New obligations to inform owners about energy consumption

The obligation to inform owners about heat and hot water consumption at least once a month has been embedded in the Czech legal system for some time. Because from 1 January 2027 all meters must have remote reading, this obligation will become universal from that date for all affected SVJs.

Consumption information does not have to be sent by registered letter. Because portals and apps are often used and data on the use of apartments is processed, it is advisable to also take into account the requirements of GDPR. In practice, and under Czech law, it is sufficient to make the data available via remote access, for example through a web portal or an app, of which the owner must be informed.

What proper information looks like

Under Decree No. 269/2015 Coll. and the Services Act, the information must include data on the identified consumption of heat and hot water for the given period. The aim is for the apartment user to be able to regulate their behaviour and save energy.

A common mistake is the assumption that this is a monthly settlement statement, i.e., an invoice. It is not a financial settlement of costs, but information on consumption in units of measurement. If an SVJ does not provide this information, it breaches Act No. 67/2013 Coll.

Practical risk: Disputes and sanctions

If an SVJ fails to meet the information obligation, it exposes itself to the risk of a fine. Under the Services Act, an obligation may arise to pay the service recipient a contractual penalty for delay in non-monetary performance, although for monthly information the primary oversight is public-law supervision by the SEI.

However, the greater risk is disputes over the validity of the overall annual settlement. When a dispute escalates into court proceedings (e.g., over underpayments or the invalidity of the settlement), it may also be useful to understand the related context of liability for interventions in the building; see changes to an apartment layout in an apartment building: intervention in common areas, structural integrity and liability. If an owner argues that they did not have ongoing information and could not influence consumption, this may complicate the recovery of underpayments. In practice, timely legal analysis and setting up a procedure for recovering underpayments often helps, or, where appropriate, resolving the dispute through court proceedings within commercial and litigation disputes.

Energy Performance of Buildings Directive: Reality vs. myths

In 2024, a revision of the European Energy Performance of Buildings Directive (EPBD) was adopted. Although the original drafts spoke of a strict ban on the use or sale of buildings in classes F and G by certain dates, the final wording is more moderate.

Member States, including the Czech Republic, must ensure a gradual reduction in the average energy consumption of the residential building stock. This means that the renovation obligation is shifted to the state level, which must set subsidy and legislative conditions so that renovations take place.

What does this mean for homeowners’ associations (SVJ) in classes F and G?

Although there is no direct statutory order to renovate under threat of a fine, buildings in energy classes F and G will come under strong economic and market pressure:

Decline in property value: Apartments in energy-inefficient buildings lose market value.
Targeted subsidies and state pressure: The state will prioritise subsidy programmes for the worst-performing buildings.

For SVJ, this means that postponing insulation or the replacement of heat sources becomes a strategic mistake. Banks may be more cautious when providing mortgages for such properties as part of so-called green financing.

Practical risk: Inaction by the statutory body

The SVJ committee has a duty to act with due managerial care. Ignoring an emergency energy condition of the building that leads to a deterioration of owners’ assets or unnecessarily high energy costs may give rise to the committee members’ liability for damages.

Attorneys from ARROWS, a Prague-based law firm, can assist you with the legal preparation of investment projects, including reviewing loan agreements and contracts with contractors, to ensure the investment is legally secure.

Inspections of heating systems

The obligation to carry out regular inspections of heating systems and combined heating and ventilation systems still applies if their rated output exceeds 70 kW. This obligation affects most larger apartment buildings with their own boiler room or heat transfer station.

The inspection interval depends on the type of source and output, typically ranging between 2 and 5 years. The inspection is carried out by an energy specialist authorised by the Ministry of Industry and Trade, and the inspection report must be submitted to the State Energy Inspection upon request.

Risks of non-compliance

The absence of a valid heating system inspection report is an offence under the Energy Management Act. In addition to a fine, SVJ also faces the risk that, in the event of an insured loss, the insurer may reduce the insurance payout if it finds that the statutory inspection under Decree No. 38/2022 Coll. was not carried out.

New Accounting Act: What is coming

A new Accounting Act is in the legislative process, with its effectiveness expected probably from 1 January 2028. For SVJ, it should bring categorisation of accounting entities, an emphasis on the digitisation of records, and changes in reporting.

SVJ will likely fall into the category of micro or small accounting entities. The new act is closer to international standards, which may change the methodology for accounting for certain transactions and the structure of the financial statements.

Unlike business corporations, SVJ does not account for the value of the apartment building, but only for its own assets and the management of third-party assets.

Attorneys and cooperating tax advisers from ARROWS, a Prague-based law firm, monitor legislative developments and are ready to help SVJ transition to the new rules.

Potential issues	How ARROWS helps (office@arws.cz)
No remote meter readings after 1 January 2027	Analysis of supplier contracts, review of bylaws to transfer obligations, representation in the event of a State Energy Inspection audit.
Failure to meet the information obligation on consumption	Preparation of a legal framework for GDPR and service of documents, review of contracts with the billing/consumption allocation provider.
Decision-making on reconstruction blocked	Attorney participation at the owners’ meeting, moderation of the discussion, updating bylaws to reduce required quorums.
Missing statutory inspections and checks of technologies	Audit of statutory obligations for building management (compliance), setting an inspection schedule.
Transition to the new accounting rules	Consultations on the impacts of the new legislation, legal support when changing the accounting firm or software.

Final summary

The year 2027 and the period leading up to it require SVJ committees to be proactive. Waiting until the last minute can become costly, whether due to sanctions for missing remote meter readings or due to rising prices of construction work and materials.

SVJ chairpersons, who often perform their role in their free time, cannot cover all the nuances of the Energy Management Act, the Czech Civil Code, and accounting regulations.

Attorneys from ARROWS, a Prague-based law firm, specialise in residential housing law and property management. We can take on the burden of legal responsibility, review your internal regulations, and ensure that your SVJ gets through this period of change without fines and disputes.

If you want to be sure that your SVJ operates in compliance with the law, contact ARROWS, a Prague-based law firm, today.

FAQ: Most common questions on financing and decision-making

1. How to finance costly remote meter reading installations?
If there are not enough funds in the repair fund, the owners’ meeting may approve an extraordinary contribution. An alternative is to spread the payment with the supplier in the form of a meter rental service, which may be more expensive in the long term; therefore, ARROWS will provide you with a legal analysis of the contracts.

2. What majority is required to approve modernisation?
For decisions on repairs and modernisation of the common parts of the building, a simple majority of the votes of the owners present is sufficient under the Czech Civil Code, unless the SVJ bylaws set a higher quorum. It is crucial to check your bylaws, because older documents often require higher majorities.

3. What if an owner refuses to allow access to the apartment for meter replacement?
By law, the owner has a duty to allow entry for the installation and maintenance of meters. If they fail to do so, access can be sought through the courts and damages can be claimed, for example a fine imposed on the SVJ by the inspection authority.

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance on the topic based on the legal framework as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for the maximum protection of our clients we maintain professional liability insurance with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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