Monday (February 4, 2008) saw the introduction of the UK’s first LEZ. It means vehicle operators that have failed to fit emissions abatement equipment to HGVs over 12 tonnes that don’t meet Euro III standards for particulate matter must pay a £200 daily charge if they wish to drive the vehicle in Greater London.

Non-payment of the charge could lead to a £1,000 penalty charge per day, which will be reduced to £500 if paid within 14 calendar days, but increased to £1,500 if not paid within 28 calendar days. However, operators have a 28-day warning period from the launch of the scheme to bring their vehicles into compliance before penalty charges apply.

But, from July vehicles over 3.5 tonnes and buses and coaches over five tonnes must also comply with the LEZ regulations, prompting warnings from Northgate Vehicle Hire, Britain’s largest daily rental company with a fleet of more than 65,000 vehicles, to take steps now to ensure compliance.

Phil Moorhouse, managing director of Northgate’s operations in UK and Ireland, which focuses on commercial vehicle hire up to 7.5 tonnes, although it does have some 12-tonne units on its fleet, said: “Fleets that operate older vehicles will find administration increasing significantly as a result of the London LEZ. To ensure regulatory compliance, the avoidance of any penalties and reduced fleet administration operating the ‘cleanest’ vehicles is essential - and for many fleet operators renting and getting access to a modern range of vehicles should form part of their decision-making process.”

As LEZ rules impacting on vehicles of 12 tonnes and above kick in, Transport for London has introduced the 28-day period of grace to provide vehicle operators with more time to either pay for emissions abatement equipment to be fitted, to obtain a Reduced Pollution Certificate or a Low Emission Certificate from the Vehicle and Operator Services Agency, or add replacement vehicles to their fleet.

Mr Moorhouse said: “This can be a hugely time consuming and laborious process that can impact on the operating efficiency of a company’s fleet as vehicles are taken off the road to enable remedial work to be carried out.

“Additionally, fleet operators need to consider whether replacement vehicles are required.”

Such issues further strengthen the argument for fleet owners to change their thinking from “ownership to usership” by giving greater consideration to vehicle rental as a long-term method of vehicle acquisition rather than just a short-term fix, according to Mr Moorhouse, who said: “The newest and most environmentally-friendly commercial vehicles are on the Northgate fleet.

“Cost management is crucial for all commercial vehicle fleets and that is where our van vehicle solutions score. Commercial vehicle operators should use the introduction of the LEZ to review their fleet acquisition methods and they will find that rental is extremely price competitive in comparison with other funding methods.

“Fleets pay for a vehicle on a weekly basis and can return it whenever they want unhindered by the contractual terms imposed by leasing companies. Equally, if companies have previously purchased vehicles they now no longer have cash tied up in a depreciating asset or carry the risks of ownership.

“The flexibility of our service means that businesses can hire vehicles on a cost-effective basis to manage periods of peak demand or to meet the specific requirements of a new contract win without fear of being lumbered with commercial vehicles when their use is no longer required.

“Vehicle rental takes the headache of LEZ compliance away from vehicle operators and ensures that they will remain on the right side of the law with no threat of fines.

“While the standard impacting on 12-tonne lorries came into effect this week, it is only a few months before regulations are tightened to include commercial vehicles over 3.5 tonnes. Operators should start planning for that eventuality now.”

In addition, from October 2010 the LEZ regulations will hit larger vans (1.2-3.5 tonnes) and minibuses, and from January 2012 regulations governing trucks over 12 tonnes, buses and coaches will tighten so they have to meet Euro IV standards for particulate matter. Cars, motorcycles and small vans are not affected by the introducion of the London LEZ.