The present paper describes the development of a method where simulations combined with measurement of parameters for each apartment such as temperatures and relative humidity in the exhaust air and electricity consumption, are used as a basis for individual energy billing. With simulations a transfer function between total heat consumption in the building and in the measured parameters for each apartment is calculated for estimating the individual contribution to the total heating energy used in the building. Transfer functions between humidity in exhaust air from each apartment and individual domestic hot water consumption are found by process identification. The aim with this development is to establish a method for a just distribution of the energy cost at a minimum cost, i.e. with as few measurement points as possible and without having to enter the apartments for installation and service of the system.