Operators will be familiar with the Bus Service Operators Grant (BSOG), a discretionary payment to operators of eligible local bus services to help them recover some of their fuel costs. Up to now, the amount each bus operator receives has been based on the amount of fuel they use, but a change brought in by the Government at the start of April means that for the first time, zero-emission buses will also qualify, on a per kilometre basis, having previously been excluded from the scheme.
With the new zero-emission bus (ZEB) incentive, operators of vehicles that hold a zero-emission bus certificate may be eligible for a 22p per kilometre rate of BSOG for those vehicles. Eligible buses must meet the normal BSOG rules, demonstrate zero tailpipe emissions and have no internal combustion engine. Vehicles will need to be verified by certification, which builds on the existing testing and certification process for the LCEB (Low Carbon Emission Bus) incentive. Operators which operate under Section 19 permits may also be eligible. Vehicles for which operators receive the ZEB incentive will not be eligible for any other incentives.
Operators of internal combustion engined vehicles may also receive an 8% increase in their BSOG rate for vehicles that have operational smartcard systems installed and a further 2% increase for vehicles that are fitted with AVL equipment, and operators of vehicles that hold a low carbon emission (LCEB) certificate may be eligible for an additional 6p per kilometre for those vehicles. However, vehicles for which an operator receives the new ZEB payment will not be eligible for other incentives under the scheme. The new grants will also cover buses which have been repowered with electric drivelines, as well as new build vehicles.
Powertrain specialist Equipmake, which offers new build e-buses and repower technology, welcomed the news but called for more incentives to accelerate e-bus transition. Managing Director Ian Foley said: “The Bus Service Operators Grant being updated to include electrified buses is a welcome and necessary step in the right direction and one Equipmake has advocated for some time. Along with new electric buses, repowered buses represent a historic opportunity to deliver a transformation to sustainable mobility that must not be wasted.
“We know there is a clear appetite for this. While national new bus sales are massively down, we are seeing strong demand and have plans to expand our facility, creating 180 jobs, bringing the total number of staff employed at Equipmake to 255. The changes to BSOG will only increase interest and will hopefully help repowered electric buses consign the diesel-powered bus to the history books, where it belongs.”
