21.1.2013 Proposed Congestion Charge changes

Transport for London (TfL) has proposed to make changes to London's Congestion Charge scheme, to ensure that it continues to reduce traffic congestion and emissions in the capital in the most efficient way.

TfL are considering an Ultra Low Emission Discount to replace the existing Greener Vehicle and Electric Vehicle Discounts. They also wish to increase the penalty charge by £10 to £130 and remove the option of paying in retail outlets.

The public consultation for the proposed Congestion Charge changes will end on 8th February 2013, if the Mayor decides to approve the proposals, with or without modifications, they will come into effect from spring 2013. To get involved and add your input, visit TfL consultations website.

At present, the Congestion Charge applies to all vehicles entering the zone from 7am to 6pm Monday to Friday, unless they are exempt or registered for a discount. The £10 daily charge is payable in advance or before midnight on the day of travel. To see a list of vehicles that are currently exempt then visit our Congestion Charge exempt list.

The most surprising aspect of the proposals is the plan to replace the Greener Vehicle Discount and Electric Vehicle Discount with an Ultra Low Emission Discount – from the 1st July 2013. The reasoning is that the Greener Vehicle Discount has achieved its aim of accelerating the uptake of sub 100 gCO2/km cars in the capital, helping to reduce CO2 and other air pollutants.

The number of qualifying cars has tripled since the discount scheme was introduced January 2012, and without tightening the emissions criteria there could be a significant increase in the number of vehicles within the Congestion Charge Zone, undermining the purpose of the discount.

The Ultra Low Emission Discount proposes that all electric vehicles and cars and vans which emit 75g/km of CO2 or less and meet the Euro 5 standard for air quality, would qualify for a 100% discount from the Congestion Charge if they are registered with TfL.

Plug-in hybrid electric cars and vans that are on the TfL approved list are currently eligible for the Electric Vehicle Discount and would qualify for the new Ultra Low Emission Discount too. An annual payment of £10 per vehicle would be required at the point of registration for the Ultra Low Emission Discount and for each subsequent year that the discount is renewed.

The Ultra Low Emission Discount would offer a technology neutral approach and, unlike the Greener Vehicle Discount, both cars and vans that meet the emissions criteria would be eligible for the discount. Including vans in the discount should encourage the uptake of ultra low emission commercial vehicles. In the future, hydrogen, petrol or diesel vehicles may become available that also meet the eligibility criteria for the Ultra Low Emission Discount.

The Ultra Low Emission Discount contributes to the Mayor's policy to promote electric vehicles and his aspiration to make London the European capital for electric vehicles. It would also align with Government policy to encourage the use of ultra low emission vehicles.

Creating a new Ultra Low Emission Discount to replace the current Greener and Electric Vehicle Discounts has the potential to:

* Reduce traffic volumes and congestion in the Congestion Charging zone from the increasing numbers of cars eligible for the Greener Vehicle Discount
* Further reduce air pollutant and CO2 emissions from traffic in the Congestion Charging zone
* Offer a technology neutral discount, open to any fuel type
* Encourage a shift to the cleanest ultra low emission vehicles.

TfL proposes that the Greener and Electric Vehicle Discounts would be closed to new registrations on 28 June 2013. Vehicles already registered for the Greener Vehicle Discount would continue to receive the 100% discount for two years, until 26 June 2015. However, if a vehicle owner sells the vehicle during this period, the new owner would not be eligible for the Greener Vehicle Discount. Owners of vehicles currently registered for the Greener Vehicle Discount would have to pay the daily Congestion Charge from 29 June 2015.

Vehicles registered for the current Electric Vehicle Discount would automatically qualify for the new Ultra Low Emission Discount. Drivers of these vehicles would not need to take any action as TfL would automatically transfer the vehicle to the new discount type.

Should the Mayor decide to proceed, the scheme changes would be introduced as follows;

* Penalty charge increase – 29 April 2013
* Closure of the Greener Vehicle Discount to new registrations, closure of the Electric Vehicle Discount and closure of retail payment – 28 June 2013
* Introduction of the Ultra Low Emission Discount – 1 July 2013
* Closure of the Greener Vehicle Discount – 26 June 2015.

An information campaign would be launched to help ensure that drivers are aware of the changes to the way that the Congestion Charging scheme would operate.

Transport for London