A new Department for Business and Trade (DBT) support scheme could provide relief on electricity costs for eligible businesses within the shipbuilding industry.
From 2027, the British Industrial Competitiveness Scheme (BICS) is intended to exempt thousands of qualifying businesses from costs associated with the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. As a result, participating businesses could see electricity cost reductions of approximately 20–25%. This initiative aims to bring GB industrial electricity prices more in line with European comparators.
A DBT consultation for businesses in England, Scotland, and Wales has now been launched for the scheme, which can provide support to businesses operating within the eight growth-driving sectors identified in the UK Industrial Strategy (including Defence, Advanced Manufacturing, and Clean Energy Industries), as well as the foundational sectors that support them.
To help ensure that the approach put in place is workable for businesses and that support is directed to where it will have the biggest impact on economic growth, DBT will be gathering views through a consultation process. This consultation seeks views on how to determine which businesses within manufacturing frontier industries of the Industrial Strategy growth sectors and manufacturing foundational industries in the frontier industries supply chains, should be eligible for the scheme.
The consultation is open until 19 January. You can access it at: British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach – GOV.UK
SMC Briefing Summary
The Scottish Maritime Cluster attended a DBT briefing this morning on this topic. The session was recorded, and we will distribute the link/slides if requested.  Written details are provided on the consultation page – see below.  In the meantime, here is a quick summary:
Rationale – BICS is being introduced because of link between high energy prices and reduced economic activity, and higher relative electricity costs in UK than other countries.
Savings – BICS will reduce electricity costs by c.£35-40/MWh. DBT say that electricity costs could fall by c25% for eligible businesses and estimates benefits for c7000 businesses across UK (not Northern Ireland).
BICS Timeline – The consultation period is from Monday 24 Nov – Monday 19 Jan 2026.   The response will be published within 12 weeks.  BICS won’t open until April 2027 (as it requires legislation), it will be reviewed in 2030, and run until 2035.
Eligibility – Three factors:
  • Carrying out manufacturing activities – Manufacturing activity will be assessed on your reported SIC codes (which don’t distinguish between commercial and naval shipbuilding).
Pro-rata measures may be available for businesses which make a mix or eligible and non-eligible products. For non-eligible businesses, it may be worth looking at adjacent schemes, inc British Industry Supercharger; AI Growth zones (for data centres, which are out of BICS scope); and other Industrial Strategy measures (Energy intensive industry compensation scheme; Corporate power purchase agreements market; and new Connections Accelerator Service). See gov.uk for more info.
Application process – It is unlikely to start until well into FY26-27.  The focus will be around SIC code (you will need to ensure your reporting to Companies House is aligned), energy supplier, and evidence of percentage revenue generated by eligible activities.  It aims to be simple, accessible and fraud-proof.
Further information – we recommend you engage directly with DBT.  Options are: