London is to see a major overhaul later this year in the way the congestion charge is paid, with the planned scrapping of the existing payment machines. Currently these machines allow drivers to pay the daily £8 charge at car parks throughout the city.

Some of the alternatives being considered for collecting the charge are automatic and account-based payment, toll-style car tagging, and off-peak rates. Transport for London (TfL) says that the change will help reduce the number of drivers being fined for forgetting to pay the congestion charge, by taking the money directly from drivers’ congestion-charge accounts.

In 2008, penalty charges incurred by drivers entering the congestion zone amounted to £73 million, representing a huge source of revenue that the government will have to find elsewhere if the new charging system is a success.

The changes to the system will come into effect in November, at which time IBM will take over the five-year management contract from Capita, the current operator. IBM will be responsible for operating TfL’s Congestion Charging and Low Emission Zone schemes, including all the technologies concerning payments and all customer contact points. IBM’s consortium partner, NCP Services, will be responsible for the schemes’ enforcement.

A TfL spokesman said that TfL were looking forward to working with IBM in the development of more flexible congestion charging technology with automated and account-based payments. IBM executive Paul Robb said that “IBM will bring its transformational capabilities and extensive experience of road charging and intelligent transportation systems” to bear in this deal.

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