
How to calculate ILI, step by step
A worked ILI calculation: build the water balance, find the four UARL inputs and check the result with a practical network example.
Industry · 27 August 2026
A water meter is easy to ignore until the numbers stop adding up. Housing associations across Europe are replacing manual readings with remote-readable meters – partly because a EU deadline requires it for heat and hot water, but mostly for reasons that show up directly in the association's budget. Here is what actually changes, and what to ask before choosing a system.
The EU Energy Efficiency Directive (2023/1791, carrying forward the 2018 rules) requires that meters and heat cost allocators for heating and domestic hot water are remotely readable. Devices installed since late 2020 already had to be; existing ones must be converted or replaced by 1 January 2027.
One point is often mixed up in public discussion: the directive covers heating, cooling and hot water – it does not require in-apartment cold-water meters to be remotely readable. When housing associations put those on remote reading too, it is a practical choice, not a legal one. The practical reasons are usually stronger than the legal ones anyway.
The most common surprise in a building’s water accounting is the difference between the utility’s main meter and the sum of the apartment meters.
The main meter at the building’s inlet is typically already remote-read: the utility records its value automatically, on a fixed date and time. If the apartments are still read by hand, those readings arrive on different days – or not at all, in which case someone estimates. The result is a gap between what the building bought and what the apartments reported, and that gap lands on the association’s shared costs.
An illustrative example: a 40-apartment building with around two residents per apartment and typical consumption of roughly 90 litres per person per day uses about 2,600 m³ of water a year. At a combined water-and-wastewater price of ~3.50 €/m³, the building’s annual water bill is around 9,000 €. If the gap between the main meter and the apartment meters is 10%, that is roughly 900 € a year that nobody in particular consumed – but the association still pays. (The figures vary by building and by country; the mechanism does not.)
When apartment meters are read automatically at the same moment as the main meter, most of the timing-related gap simply disappears. What remains points at real issues – a leak, or a meter that needs attention – instead of being noise.
With hourly or daily readings, unusual consumption stands out immediately: a toilet that never stops running, a slow drip behind a wall, a meter that has stopped counting. The platform flags it and notifies the board or property manager the same day.
One of our municipal customers put it plainly after catching a leak of nearly 900 litres per hour at an end user: the fault was found and fixed within four days of starting – because somebody saw the data, not the bill.
A remote-metering setup in an apartment building has three moving parts, none of which require new cabling:
Where a building or a single meter has no network coverage, walk-by or drive-by collection fills the gap – the readings end up in the same system either way.
Alongside remote reading, many associations take the opportunity to move from mechanical to ultrasonic water meters. A mechanical meter measures flow with a rotating impeller, which wears over time and is sensitive to particles in the water. An ultrasonic meter has no moving parts: accuracy stays stable over the years, service life is longer, and many models also detect reverse flow, empty pipe and tampering attempts on their own.
Ultrasonic meters cost more per device, but over the full life of the system – fewer replacements, fewer disputes about accuracy – the total cost is often lower. Divako’s device library is manufacturer-neutral: the platform works with the major meter brands on the market, so the meter choice can follow the building’s needs rather than the software’s limitations.
A remote water meter is rarely the end state. The same LoRaWAN network that carries water readings can later carry heat, electricity and gas meters, and building sensors such as temperature or humidity. On the platform side, the same data feeds cost distribution between apartments, a resident portal where each household sees its own consumption, and exports to the accounting or billing system the association already uses.
That is worth checking before committing: a system chosen only for today’s water meters can become a dead end when the heating meters need to join in 2027.
If a supplier has clear answers to all five, the technology choice itself is rarely the hard part.

A worked ILI calculation: build the water balance, find the four UARL inputs and check the result with a practical network example.

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For housing associations
Tell us how many apartments you have and which billing or accounting system you use. We'll walk you through what a remote-metering setup would look like for your building – in about 30 minutes.