TfL to extend congestion charge to electric vehicles

Electric vehicles (EVs) will no longer be exempt from the London congestion charge from 2 January, Transport for London (TfL) has confirmed – with electric HGVs and vans set to face a £9 daily levy for entering the inner part of the capital.

While this will be 50 per cent lower than the rate for diesel and petrol vehicles – which will rise by 20 per cent in January from £15 to £18 – it is the first time that EVs have been subject to the levy, a shift which has attracted criticism from trade associations.

Electric cars will also come within scope for the first time, but at 75 per cent of the standard rate, meaning they will be liable for a £13.50 levy.

The congestion charging zone, which covers the area within the London Inner Ring Road, operates from 7am to 6pm Monday to Friday, and 12pm to 6pm at weekends.

Chris Yarsley, senior policy manager for road freight regulation at Logistics UK, told Transport Operator: “Logistics UK is glad that TfL has recognised commercial vehicles should be treated differently to private cars in its decision to provide a 50 per cent discount for electric vans from the raise in the congestion charge.”

But he added: “The decision to remove the clean vehicle discount and extend the congestion charge to EVs, penalising businesses moving goods through the capital that have no other means of accessing their customers, is disappointing, particularly as they have made significant efforts to introduce zero-emission vehicles to the previous deadlines set by TfL.

“The logistics industry is undergoing a transition to decarbonise fleets, but the market is not yet mature, and businesses should not be made to shoulder the financial burden in isolation.”

Meanwhile the Sustainable Urban Freight Association (SUFA) said it was “deeply disappointed” by TfL’s decision to extend the congestion charge to EVs.

It cited TfL data suggesting that only 2.1 per cent of all vehicles on the road in inner London were electric vans. Introducing a congestion charge would undermine the business case for electrifying freight and lead to more diesel vans on London’s roads, it warned.

“Travelling by car in London is a choice,” said SUFA in a statement issued yesterday.

“Transport by van and HGV is often not. Other clean freight options can take on some of the mileage from vans and it is disappointing that TfL did not use this announcement to take any positive steps to incentivise uptake of other freight options such as cargo bikes, which can both reduce congestion and pollution across the city.

“A congestion charge on electric vehicles will not reduce the number of freight journeys taking place. It will lead to more diesel vehicles being used to offset the additional costs of operating electric fleets.

“Diesel vans are now the largest source of transport-related NOx in central London, and it is essential that freight operators are supported, not penalised, as they continue to invest in cleaner vehicles and infrastructure.

“While we acknowledge TfL’s recognition of the role that electric vans and eHGVs play in reducing emissions, and the decision to prioritise them within a two-phase discount system, this decision will be counterproductive to TfL’s own environment objectives.”

Kirsten Zoe Smith, co-chair of SUFA and net zero strategist at waste and recycling specialist Recorra, added: “Freight operators across London want to transition to zero-emissions vehicles. They currently face significant cost barriers to doing so, from the difficulties of securing grid connections, to weight regulations and energy costs.

“Introducing a congestion charge for electric vans and HGVs will at best slow that progress, and at worst reverse it.

“Penalising operators trying to do the right thing will not reduce congestion, but make it harder for them, and others, to make the shift to zero-emissions fleets.”

TfL confirmed that the existing 100 per cent cleaner vehicle discount would end on Christmas Day 2025, but that there would be no charges from Christmas Day to New Year’s Day inclusive. The new charging policy will therefore take effect on 2 January.

“To continue incentivising the important switch to electric vehicles and ensure that the congestion charge remains effective at managing traffic and congestion within central London, there will be a new tiered system of discounts,” said TfL.

“The discounts are only available for electric vehicles registered for Auto Pay.”

Justifying the policy shift, it said: “Without these changes, we estimate there could be more than 2,000 additional vehicles driving during operating hours in the congestion charge zone on an average weekday. This is compared to an estimated ‘do nothing’ scenario…

“This would undermine the benefits of the congestion charge – leading to more queues and delays, and negatively impacting London’s economy, local businesses, bus passengers and other essential services.”

It is currently expected that the 50 per cent discount for electric HGVs and vans will further reduce to 25 per cent in March 2030.