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Bus Service Operators Grant (BSOG) reform in England

Volvo Bus

Background

The Bus Service Operators Grant (BSOG) is a government-funded support mechanism for the operation of bus services in England. DfT pays c£251m to local authorities and bus operators to facilitate more accessible and affordable local bus services. The core financial support is based on the volume of fuel consumed by bus operators with rates of 35p/litre for diesel and 18.8p/kg for CNG. An additional BSOG Low Carbon Emission Bus (LCEB) 6p/km incentive is paid to certified LCEB operators. The incentive is a flat rate regardless of fuel efficiency or the zero emission mileage capability of the vehicle. As such efficient diesel vehicles currently receive more BSOG support than other lower carbon and zero emission capable models.

A DfT consultation on reforming BSOG is ongoing.  LowCVP aims to engage directly with its members on a range of proposals to reshape both BSOG and BSOG LCEB to encourage more zero emission mileage to improve air quality in towns and cities and reduce GHG emissions from bus services in line with the Department’s Road-to-Zero Strategy objectives.

Objectives

  • To identify and present a range of proposals that will encourage the uptake of zero emission capable vehicles in the UK bus fleet through the current BSOG budget. 

  • To consult the stakeholders relevant to English BSOG on the proposals through interviews and workshops and seek to agree a consensus for recommendation to government.

  • To produce key recommendations to DfT based on feedback from members highlighting the most appropriate changes to BSOG structure to encourage a shift to ULEB technologies.

Project management and stakeholder engagement

LowCVP Secretariat with BWG member collaboration including OEMs, operators, local authorities, fuel suppliers, technology and infrastructure providers.

Timeline and Deliverables

April – August 2019

Deliverables

Date

Consultation Workshops (depending on level of engagement) June 2019 - Complete
Final recommendations report August 2019

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A member view...

As a Tier 1 supplier we value our membership of LowCVP which allows access to the full supply chain
Eman Martin-Vignerte, Director, Bosch UK