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Do Fleet EVs Have to Pay London Congestion Charges?

Posted 11th October 2024

Do Fleet EVs Have to Pay London Congestion Charges?

For many businesses managing vehicle fleets, one of the big questions we often get asked is “Do electric fleet vehicles need to pay the London Congestion Charge?”

As of today, the answer is no. EVs are exempt from this charge. However, this exemption will end in 2025. We think it’s essential for fleet managers, business owners, and those considering electrification to understand how these regulations work, the exemptions available, and the financial and environmental impacts as they plan for the future.

What Is the London Congestion Charge?

The London Congestion Charge was introduced in 2003 as a policy aimed at managing traffic congestion in central London. It has evolved into a tool not only for reducing traffic but also for improving air quality. Non Electric Vehicles entering the Congestion Charge Zone (CCZ) between 07:00 and 22:00, Monday to Friday, are subject to a £15 daily fee.

For fleet managers, these fees can quickly add up, making the Cleaner Vehicle Discount for EVs an attractive option. Exemptions for electric vehicles make EV adoption financially appealing, especially for companies with vehicles frequently entering central London.

Understanding the Ultra Low Emission Zone (ULEZ)

As it stand EV’s are also exempt from the ULEZ and LEZ charges. The Ultra Low Emission Zone (ULEZ) is another key regulation designed to cut vehicle emissions in the city. Covering a much larger area than the CCZ, the ULEZ operates 24/7 and applies to all vehicles that fail to meet the required emissions standards. The latest ULEZ expansions mean that even outer boroughs are affected, so it’s essential for companies with EV fleets to understand where the ULEZ and CCZ boundaries intersect. 

Congestion Charge Exemptions for EV Fleets

For now, the Cleaner Vehicle Discount (CVD) allows electric vehicles to avoid the daily Congestion Charge. This exemption can amount to significant savings, especially for businesses with fleets regularly operating within the CCZ. But it’s important to note that starting from 25 December 2025, all vehicles—EVs included—will be required to pay the charge.

Edmund King, the president of the AA, expressed concerns about this change, noting that it may discourage businesses from adopting zero-emission vehicles: “We still need to encourage zero-emission transport rather than deter it.” We believe this shift will impact London’s clean air initiatives and hope to see supportive measures for businesses making the green transition​(EV Fleet World)

How to Apply for Congestion Charge Exemptions

Applying for the Cleaner Vehicle Discount is pretty straightforward. Fleet managers can register each eligible vehicle through Transport for London (TfL), submitting the vehicle’s V5C registration certificate. The exemption is renewable annually, so staying on top of application deadlines is critical. 

Advantages of Using an EV Fleet in London

Sizable Savings

Switching to an EV fleet can bring about substantial financial savings. With exemptions from the Congestion Charge and ULEZ fees, companies can be set to save thousands annually. Take a fleet of ten vehicles operating five days a week in the CCZ—at £15 daily per vehicle, this translates to nearly £40,000 annually in savings. Additionally, EVs have lower maintenance costs compared to traditional vehicles, making them a long-term investment for sustainable operations.

Positive Environmental Impact

The environmental benefits of electric fleets are undeniable. EVs produce zero tailpipe emissions, significantly contributing to improved air quality. At ElectrAssure, we’re committed to promoting cleaner transport options, and we’re proud to help businesses contribute to a healthier London by going electric.

Corporate Social Responsibility (CSR) Focused

Beyond financial and environmental advantages, switching to EVs supports broader CSR initiatives. Using an EV fleet demonstrates a commitment to sustainability, aligns with green certifications, and appeals to environmentally conscious customers and partners. We believe that investing in EVs shows that a business is forward-thinking and committed to positive change.

The Future of London’s Congestion Charge and EV Exemptions

As we approach the 2025 deadline, TfL has decided to end the Congestion Charge exemption for EVs, a move that has sparked some debate. Oliver Lord, UK Head of Clean Cities, has voiced opposition, arguing that treating EVs the same as diesel vehicles goes against London’s climate goals. He suggests that maintaining exemptions would encourage more businesses to adopt zero-emission vehicles, stating, “Charging EVs the same as diesel vans defies logic and best international practice”​(EV Fleet World).

TfL, however, asserts that applying the Congestion Charge to all vehicles, including EVs, is essential for managing traffic in central London. According to a TfL spokesperson, this change will “maintain the effectiveness” of the charge by reducing traffic and preventing congestion as EV numbers increase ​(EV Powered).

Some Additional Costs and Considerations for EV Fleets in London

ULEZ vs Congestion Charge Fees

While the ULEZ and Congestion Charge both aim to reduce pollution, they target different vehicle categories and areas. The ULEZ applies across a larger area and runs 24/7, while the Congestion Charge operates within the central zone during specific hours. Companies with EV fleets should understand these differences to optimise routes and reduce costs.

Charging Infrastructure Costs

While public EV charging options are expanding in London, we often advise clients to consider on-site charging infrastructure. Installing workplace chargers can provide convenience and long-term savings, allowing businesses to benefit from the Workplace Charging Scheme, which offers grants to offset installation costs.

Government Incentives and Grants

Numerous government schemes support businesses making the switch to EVs. For example, the Plug-In Van Grant covers up to 35% of the purchase price of electric vans, and the WCS provides grants for workplace charger installations. We recommend taking a look at our article about government incentives and grants specifically.

Top Tips for Managing an EV Fleet in London’s Regulated Zones

Route Optimisation Tools

Fleet management apps, such as Fleetio and Samsara, can help businesses avoid high-fee zones. These tools not only reduce costs but also enhance operational efficiency. We encourage clients to explore these technologies to maximise savings and ensure smooth operations.

Keeping Up with Regulatory Changes

As London’s transportation policies continue to change, staying up to date is crucial. By following updates from TfL and industry groups, fleet managers can adapt to regulatory changes. At ElectrAssure, we will continue to provide resources and guidance to help our clients stay one step ahead at all times.

Final Thoughts

By understanding these considerations and planning strategically, commercial fleets can make informed decisions about fleet electrification, aligning with both financial goals and sustainability objectives. As well as keeping up to date via us, we recommend the following resources in order to stay up to date with the latest industry news – EV Fleet World and EV Powered

For ongoing insights and updates on the future of EV regulations, please feel free to reach out to our team. We’re dedicated to helping you invest in your EV infrastructure. If you have any questions or are looking for expertise around turning your fleet electric then please contact our team by filling out the form below.

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