27/02/2026
District Heating Tariff Update
Following yesterday’s radio interview on BBC Radio Shetland, we wanted to provide some additional context around the upcoming tariff adjustment.
SHEAP operates on a cost-recovery basis. Our pricing reflects the cost of running, maintaining and upgrading the district heating network over the long term so that it remains reliable and secure for customers.
There are several factors behind this year’s adjustment:
• Variations in overall heat demand across the year
• A planned upgrade to the shared control system with the Energy Recovery Plant
• The phased installation of smart meters across the network
• General increases in the cost of maintaining and operating infrastructure
Like all utilities, we must plan ahead. Changes in heat use from year to year affect income, and tariffs are set to ensure the network remains financially stable and properly maintained without creating future shortfalls.
Our focus is long-term reliability, affordability and community benefit.
If anyone would like more detail about how pricing works, please contact us directly. We are always happy to explain.