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Electric fleets could cost TfL £17m in lost congestion charges

01 February 2021

Fleets could save more than £17 million per year in lost London Congestion Charge Zone payments by switching to electric vehicles according to new research.

Analysis of data from Transport for London (TfL) by Citroen, obtained by a Freedom of Information request, revealed that despite a freeze in payments last year (2020) from March 23 to May 17 due to Covid-19 restrictions businesses spent more than £1.4 million per month to enter and operate in central London. 

In total, TfL collected £17.4m in business payments for use of the Congestion Charge Zone between October 2019 and September 2020. 

The standard charge for vehicles is £11.50 – although this was temporarily increased to £15 from June 2020 due to the Coronavirus pandemic. 

At present, the Congestion Charge Zone in London is free for all vehicles that meet the current Euro 6 emissions criteria, emit less than 75g/km of CO2 and have a minimum 20-mile zero emissions range. 

As of October 25 2021 this will change to mean that only purely electric vehicles will be allowed free entry into the Congestion Zone. But, with the 2030 deadline looming and more fleets switching to electric, TfL could still be facing a huge loss on congestion charges. 

Managing director of Citroen UK Eurig Druce said, “Electric vehicles such as New e-C4 and e-Dispatch van are ideal for business and fleet users. Not only do they suit a variety of driving conditions, their zero emissions capability results in no Benefit-in-Kind (BIK) payments. As our latest research shows, businesses also stand to make significant savings in other areas – including Congestion Charge Zone payments.”

The team at Marshall Leasing are committed to helping our customers prepare for the deadline for electrification.  If you would like advice from our team of experts, please do not hesitate to get in touch with us at info@marshall-leasing.co.uk or by calling 01480 414541. 

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