Lerwick District Heating – Tariff Review 2026

Following our annual review of pricing, we have taken the decision to increase our tariffs with effect from 1 April 2026 as follows:

• Standard tariff: from 8.3p/kWh + VAT to 8.8p/kWh + VAT
• Prepayment tariff: from 10.29p/kWh (9.8p + VAT) to 10.9p/kWh (10.38p+VAT)
• Standing charge: increasing by 6%.  For domestic customers: from £160 per annum to £170 per annum + VAT.

At SHEAP we very much appreciate being a community company and always look to provide high standards of customer service.  We charge only what is required to operate and maintain the network safely and effectively.  Like all organisations, the costs of materials and systems continue to rise over time.   

Alongside these ongoing costs, we are investing in essential upgrades to the network. This includes a project which will see all customers provided with modern meters and a new billing portal. These will improve visibility of energy use, help customers manage their consumption more effectively, and ensure compliance with new Ofgem heat network regulations. Our existing meter stock is now becoming obsolete, so this upgrade is both necessary and timely.  We are also upgrading our Distribution Control System which operates the network, this too is becoming obsolete.

This tariff review supports essential improvements to strengthen long-term resilience, improve service standards, and maintain a reliable heat supply to Lerwick.