London congestion charge scheme

The Mayor of London, Boris Johnson, has confirmed that he will remove the western extension of the London congestion charge zone. The last charging day will be 24 December.

A host of other changes to the operation of the London congestion charging scheme will come into effect on 4 January 2011, including:

• an increase in the daily charge from £8 to £10, if paid in advance or on the day of travel, and an increase from £10 to £12 if the charge is paid the next day.
• a 100% discount from the charge for all cars that emit 100g/km of CO2 or less and meet the Euro 5 standard for air quality. Cars will need to be registered with Transport for London on an annual basis at a cost of £10 a vehicle. There is also a commitment to review the level of CO2 required to qualify for the 100% discount by the end of 2012 and possibly tighten the standard to 80g/km.
• introduce ‘CC Auto Pay’ to allow motorists to register vehicles against a payment card that will be billed each month for the days travelled within the congestion charging zone. Vehicles registered on CC Auto Pay will get a £1 discount from the normal daily charge of £10. The discount scheme does not appear to be a viable option for fleets, as a maximum of five vehicles will be allowed for each registrant.

Further detail

CC Autopay

Ahead of CC Auto Pay going live in January, motorists can pre-register on the TfL website for a CC Auto Pay account from 22 November. This will make paying the congestion charge easier and ensure that no penalty charge notices (PCNs) are issued. To register drivers will need a credit or debit card and will have to pay a £10 registration charge for each vehicle on the account. Drivers will only be charged for the days they travel within the zone and will be billed each month.

Alternative fuel discount

The current alternative fuel discount provides a 100% discount to some vehicles that are powered by an alternative fuel (including LPG, natural gas and petrol-electric hybrids). However, some of the benefits of the alternative fuel discount have been outpaced by technological developments in other vehicles. This means that some new vehicles that do not qualify for the alternative fuel discount have better environmental performance than some vehicles that do qualify.The alternative fuel discount will be closed to new registrations on 24 December 2010. However, owners of vehicles registered with TfL before that date will continue to receive a 100% discount for a two year period.

Residents

Residents registered for the resident’s discount will be able to register for CC Auto Pay and will then be entitled to a 90% discount of the £9 daily charge. Under this system, a resident’s account will be charged £0.90 for every day that their vehicle is used within the congestion charging zone. This works out cheaper than the current payment method which requires residents to purchase weekly, monthly or annual charges at set prices. Those people who receive the 90% resident’s discount because they reside within the western extension, or immediately adjacent to the western extension boundary, will no longer qualify for a 90% discount from the charge, reverting to the position prior to the western extension.

Minibuses

Vehicles with 9 or more seats will attract a £10 annual registration fee to register for a 100% discount to bring them in line with all other vehicles which are eligible for a 100% discount.

BVRLA comment

The BVRLA is pleased the Mayor has delivered on his manifesto pledge to remove the western extension and is encouraged by the early indications provided with regards to future changes to the level of CO2 required to qualify for the 100% discount. However, we are disappointed that he has continued with the £10 administration charge to register vehicles for discounts and fleet schemes when it is completely unnecessary and that the fleet scheme has not been devleoped to assist rental and leasing companies by removing the burden on members and TfL of transferring liability for fines to the customer. It is something we will continue to lobby on.

To view our response to the consultation click here.

Contact
Amanda Brandon, amanda@bvrla.co.uk
tel: 01494 545701

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