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Cordon and Area Pricing
10. Central London Congestion Charging
Greater London (or London) is a vast urban region comprising the City of London and
32 London boroughs. It has a population of about 7.5 million. Central London refers to
the innermost part of London characterized by high density and land values, though with
varying, unofficial boundaries that generally contain significant central government offices,
primary financial and business services, and cultural institutions.
The Greater London Authority (GLA) Act, passed by Parliament in 1999, sought to return cen-
tral governorship to London's 33 boroughs, not had since the abolition of the Greater London
Council in 1986. The GLA Act established the Greater London Authority, comprising the London
Assembly and a Mayor of London. The London Assembly is an elected body that scrutinizes the
Mayor's activities and has the power to amend the Mayor's budget. The GLA Act also established
Transport for London (TfL), an executive agency under the Mayor's purview responsible for buses,
the major road network, traffic control, the Docklands Light Rail, and, later, the London Under-
ground. Finally, the GLA also authorized TfL to ". . . establish and operate schemes for imposing
charges in respect of the keeping or use of motor vehicles on roads in its area" (Greater London
Authority Act 1999, Part IV, Chapter XV).
Following the GLA's enactment, Ken Livingston became the first directly elected Mayor of
London in May 2000. One of his campaign platforms was to improve congestion and the condi-
tion of the transportation system in London. At the same time, in preparation for the Mayoral
elections, the Government Office for London established a working group--the ROad Charg-
ing Options for London (ROCOL) Working Group--to investigate how the newly granted road
user charging powers might be applied in practice. They developed a plan for an "area licensing
scheme" for central London controlled through the use of a camera-based number-recognition
system to monitor vehicle license plates. A congestion charge could then be assessed on vehicles
that crossed a set boundary. They believed the system could be in place by September 2003.
Mayor Livingston acted quickly on his campaign promise and the work of ROCOL. While
seeking to capitalize on the new revenue source, the charging system would provide for reinvest-
ment in an improved transportation system. He adopted the charging strategy in his official
Transport Strategy in late 2000 and set in motion the steps taken to ultimately put the system in
place in February 2003.
10.1. Overview of Central London Congestion Charging
Congestion charging was instituted in Central London in February 2003 for the 8-square-mile
central business district inside the Inner Ring Road (a linked collection of major roads that sur-
round the centermost part of London), containing the entire City of London, the financial dis-
153
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154 Evaluation and Performance Measurement of Congestion Pricing Projects
trict, and the West End. The flat rate, per-day charge is levied to enter the Congestion Charge
Zone weekdays from 7 AM to 6 PM.7 The rate was initially set at £5 and was increased to £8 in
July 2005. Private vehicles entering the zone must pay the charge on the day of travel, or the next
day for £10, online, through text message, on the phone, or at certain stores. Certain vehicles
including taxis, London licensed private hire vehicles, motorcycles, and buses, are exempt from
the charge. Other categories of vehicle users can register for discounts, including a 90-percent
discount for residents inside the zone and a 100-percent discount for eligible persons with dis-
abilities and alternative fuel vehicles.
A system of cameras located along the cordon is equipped with Automatic Number Plate
Recognition (ANPR) technology. License plate numbers are captured and compared with a data-
base of payees. Some plates not recognized by the cameras require manual checking. Those that
enter the zone without paying trigger a penalty notice to be sent to the vehicle's registered owner,
identified from a Driver and Vehicle Licensing Agency database.
Given the success of the original central zone, and again following though on a (re)election
campaign promise to examine possible extensions of congestion charging, Mayor Livingstone
acted on TfL studies indicating the greatest benefits of extending the zone would come from a
western extension. Planning and infrastructure implementation took place throughout 2005 and
2006. The Western Extension charging commenced in February 2007, effectively doubling the
charging zone to include Westminster and Kensington and Chelsea. An uncharged through-route
bisects the two zones.
Overall, the goals of the congestion charging program, as outlined in the Mayor's Transport
Strategy, have been to
· Reduce congestion
· Make radical improvements to bus services
· Improve journey time reliability for car users
· Make the distribution of goods and services more efficient
In addition, a reduction in traffic was expected to lead to a reduction in emissions, and net
revenue would be available for reinvestment in London's transportation network.
Revenue from the congestion charging program was approximately £268 million in fiscal year
200708, with operational costs of about £131 million, resulting in net revenues of £137 million.
Net revenues since inception through fiscal year 200708 have roughly totaled £440 million. By
law, these revenues have been and continue to be reinvested in measures outlined in the Mayor's
Transport Strategy. Since its implementation in 2003, this reinvestment has substantially com-
prised bus network improvements at roughly 80 percent of net revenues. Other investments have
included road and bridge reconstruction, road safety projects, infrastructure improvements for
pedestrians and bicyclists, and transportation technology to improve the environment.
Several proposed changes to the charging program have recently been proposed and are under
evaluation. The primary proposal initiated by Mayor Boris Johnson, elected in 2008, is the review
and removal of the Western Extension. Concerns exist over effects on the local economy and the
zone's residents, despite measurable reductions in traffic, increased use of alternative transporta-
tion modes, and improvements to the environment. Other proposed changes include a rate
increase to £9 and the implementation of an automated payment system, whereby drivers can
register with a debit or credit card and not have to remember to pay the charge on the day of
travel. The rate to use the old method of payment would increase to £10, and payment on the
day after travel would increase to £12.
7The original hours of charging were from 7 AM to 6:30 PM. After the implementation of the Western Extension, the charging
hours were changed to 7 AM to 6 PM, applied to both zones.
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Congestion Pricing Case Studies 155
10.2. What Is Monitored?
The full spectrum of performance monitoring activities for London's congestion charging is
provided in the accompanying Facility Performance Monitoring Summary Matrix. The matrix
is a comprehensive record of all current, known metrics used to monitor performance on the
facility, organized by evaluation category. Provided in the matrix for each metric used are fre-
quency of collection, purpose, and particular characterizations of the metric that relate back to
agency/facility goals or applications. An expanded version of the matrix providing sources of
information and other notes is included in the Final Report for NCHRP 08-75 which is available
on line. The matrix is intended to be a visual overview of London's complete monitoring effort,
easily comparable to other cordon or area priced facilities with similar matrix summaries.
A comprehensive 5-year monitoring program was put into place by TfL to assess the effects of the
charging scheme. The 5-year program resulted in the publication of six annual reports from 2003
to 2008, each progressively building on one another, with the fifth in 2007 introducing additional
monitoring of the effects of the Western Extension, as well as a one-time benefit-cost analysis. The
program was designed to assess key traffic, transport, business, economic, social, and environmen-
tal impacts of the scheme by consolidating information from over 100 specially designed surveys
and studies, while making use of existing surveys and data sources. Sources included
· Data generated from traffic management and scheme operation functions
· Moving car observer surveys
· The use of monitoring and enforcement cameras
· A wide range of traffic counts across various areas, sites, screenlines, and cordons
· Various counts of buses and bus passengers, plus data from other public transport providers
· Trip diaries, a wide range of travel surveys, as well as data from parking providers, the Public
Carriage Office (taxi licensing), and the London Accident Analysis Unit (part of TfL)
· Business surveys, economic case study work, plus data on a range of key environmental
indicators
The purpose of the 5-year monitoring program was to provide much of the information that
enabled the Mayor and other interested parties to assess the effects and implications of conges-
tion charging and whether or not adjustments to the scheme should be considered. Baseline con-
ditions were measured before the charging scheme was put into place. The work was managed
by a team of permanent TfL staff, with independent contractors undertaking most of the main
data collection elements.
The individual metrics and their specifics are provided in the Facility Performance Monitor-
ing Summary Matrix, along with those that constitute the ongoing monitoring effort by TfL.
Since the official conclusion of the 5-year program, TfL continues to monitor the congestion
charging scheme and has published the results in its newly introduced Travel in London annual
report on the city's transportation network. Report 2, published in 2010, states that during 2008
and 2009, TfL has "continued core elements of traffic and congestion monitoring in relation to
the scheme."
10.3. Why Performance Evaluation Takes Place and How
Performance Monitoring Data Is Used
The main purpose of performance evaluation was to assess the effects of the scheme and make
necessary changes to its operation. Several principles guided the performance monitoring program:
· Monitoring should robustly detect and characterize the main expected effects of congestion
charging.
· Monitoring should enable unexpected or unanticipated effects to be determined.
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156 Evaluation and Performance Measurement of Congestion Pricing Projects
· Monitoring should seek to understand as well as measure.
· Monitoring should aim to meet the legitimate needs of all stakeholders for information.
· Monitoring should provide Best Value.
Changes to the congestion charge must be made to its Scheme Order, the legal framework
behind the charge, that contains the definitions of what the charge is, where it applies, details on
discounts and exemptions from the scheme, penalty charges, refunds, etc. Scheme Orders are
made under the powers established in the GLA Act. Changes to the Scheme Order occur through
a procedure known as a Variation Order, of which many have been proposed and instituted since
the charge's inception, altering and improving the scheme based on the results of monitoring,
including those to operations, the payment structure, the charge itself (e.g., when increased from
£5 to £8), the implementation of the Western Extension, and others. Each Variation Order is
subject to public consultation before the Mayor considers TfL's response to the representations
received and decides whether to confirm the change (with or without modifications) and make
it part of the Scheme Order. Monitoring then continues to evaluate the effects of these changes
after they are put into place.
TfL continued the core elements of traffic and congestion monitoring in relation to the scheme
in 2008 and 2009. New traffic level and congestion data has allowed TfL to study the relationships
between traffic volumes and road network performance in Central London in detail and derive
fundamental relationships which provide a better understanding of the factors behind recent
trends in Central London road network performance.
10.4. Other Data Gathering Activities
Beyond the comprehensive monitoring program and ongoing efforts of TfL, several other
evaluations of the original congestion charge have taken place. However, as these were not part
of the official monitoring of the program by its operating agency, TfL, they are not included in
the Facility Performance Monitoring Summary Matrix.
Prior to the implementation of congestion charging, the London Assembly recommended
eight criteria on which to judge London's congestion charge. London's congestion charge
· Must deliver a real and sustained reduction in congestion
· Must not have an adverse impact on the areas outside the charging zone
· Must not disadvantage Londoners (particularly low-income groups)
· Must deliver a real improvement to bus journeys in London
· Should not have an adverse effect on London's economy or services
· Should not have an adverse effect on London's environment
· Should not penalize "innocent" drivers
· Should deliver net revenue to fund transport initiatives
A report published in February 2004 evaluated the extent to which each criterion had been met
10 months into the scheme's implementation through results from a focus group, TfL data, and
various surveys. Through mostly qualitative discussions, the report summarized the following:
· Impacts on congestion within central London and outside the charging zone
· Impacts on Londoners, especially low-income groups
· Effects on public transportation, especially buses
· Impacts on the economy and the environment
· Remarks on customer service and enforcement
· Net revenue to fund transportation initiatives
The report concluded with recommendations for further monitoring and policy consider-
ations for TfL. Although the report makes multiple mentions of future monitoring by the
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Congestion Pricing Case Studies 157
London Assembly, no further reports specifically on the congestion charge monitoring have
been published.
Another monitoring effort, commissioned in 2002 by the Association of London Government
(ALG)--renamed the London Councils in October 2006, was performed by Ove Arup & Part-
ners. The London Councils is a local government association comprising representatives from
the 32 London Boroughs and the City of London, as well as the police authority and fire brigade.
This review by the London Councils was intended to act as an independent audit of the conges-
tion charging scheme, as TfL's ability to carry out the scheme's primary performance monitor-
ing was thought to potentially become influenced by its administration and collection of the
charge.
Five study elements were selected as a focus of the monitoring program, and data was gath-
ered and analyzed before and after the scheme's implementation in 2002 and 2003, respectively:
· An independent assessment of the impact of the congestion charging scheme on traffic levels
inside and immediately outside the zone
· An independent assessment of any traffic diversion to parallel routes around the charging zone
· An examination of the impacts of the scheme on parking usage and revenue in and around
the congestion charging zone
· An examination of the effect of the scheme on parking around stations in outer London
· An examination of bus occupancy levels following the introduction of the scheme
Evaluation measures and performance metrics incorporated in this effort included traffic lev-
els measured in vehicle kilometers traveled inside and outside the zone, along the cordon, and
diverted to parallel routes around the zone. Parking activity inside and outside the zone and on
street near rail stations as measured by counts, parking charge revenue, the number and cost of
resident permits, and violation and enforcement data were also tracked. Finally, bus occupancy
and measures of overcrowding were manually counted using videotape.
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158 Evaluation and Performance Measurement of Congestion Pricing Projects Congestion Pricing Case Studies 159
Table 10-1. Central London congestion charging summary matrix.
