London EV Car Clubs Warn of Major Setback as Congestion Charge Exemption Ends

Electric vehicle (EV) car clubs in London could face a sharp decline in fleet numbers if Transport for London (TfL) follows through on its plan to remove the congestion charge exemption for EVs starting in January, according to an industry leader.

Richard Dilks, CEO of CoMoUK, the shared transport industry association, has expressed concern that the removal of the cleaner vehicle discount will eliminate one of the final incentives for electric car use in the capital. “This was the last real policy benefit keeping EVs competitive in the urban transport landscape,” Dilks stated.

Since the launch of the congestion charge in 2003 under then-Mayor Ken Livingstone, fully electric vehicles have benefited from a 100% discount. However, TfL has been consulting on ending this exemption, meaning EV drivers would need to pay the full £13.50 daily charge to access central London. EV van users would face a £9 daily fee.

TfL has acknowledged the shift could generate up to £75 million annually from EV drivers alone. The move has sparked opposition, with the Evening Standard’s Leading the Charge campaign calling for the policy to be reconsidered in the interest of cleaner air and sustainable transport.

Car clubs, which have played a key role in promoting greener travel options, are expected to be disproportionately affected. The sector could see an additional £1 million or more in annual costs, which may be difficult to offset or pass on to members, particularly as broader operational expenses continue to rise.

Dilks noted a troubling trend in car club electrification: for the first time, the share of electric vehicles in UK car club fleets has declined, falling from 35% to 30% this year. Although that rate is still significantly higher than the general vehicle fleet's electrification in London, he sees it as a warning sign.

He attributes the drop largely to increasing costs of operating EVs. Research by CoMoUK estimates that running an electric car now costs approximately £6,000 more per year than maintaining a comparable petrol or diesel vehicle.