Incentivising EVs

In 2008, the Government of Jersey began its Eco-Permit Scheme offering parking discounts for those who register a new low carbon vehicle on[AP1] [AP2]  the island. At the end of August 2023, the Electric Vehicle Purchase Incentive (EVPI) was launched to accelerate Jersey’s transition to electric vehicles by bringing down the cost of buying a new electric vehicles.

Reviewing the Cost of the Eco-Permit Scheme

Since the EVPI was introduced, it has had a notable effect on the registration of new EVs on the island. This too has impacted on the uptake of the Eco-Permit. Applications for Eco-Permits tripled[AP3] [AP4]  in September 2023 compared to the applications in previous months.

While the success of the EVPI is to be lauded, it presents a clear issue for the long-term parking revenue on the island.

Options for the Future

Galle Saliman were engaged to help inform the decision as to whether, and how, the scheme may be framed to continue in the future. Working with local officers, we confirmed five options:

Option 1: Continue as per 2022

Option 2: Hard Stop – All Eco Permits End Dec-24

Option 3: Taper Out – Eco Permits End Dec-24

Option 4: Enhanced Taper Out – Eco Permits End 31st Dec 25

Option 5: Continue 2024, Half Price 2025 -Eco Permits End 31 Dec 25

For each option we estimated the parking revenue loss for future options of the Eco-Permit Scheme.   [AP5] This was based on the number of Eco-Permits that may be expected to be in use over subsequent years and using forecasts of the uptake of the EVPI and existing EV purchase trends.

Outcome

The project was delivered to a short timeframe to support the Minister’s decision. The Eco Permit Scheme ceased in December 2024.

Government of Jersey, 2023