The much anticipated next-generation electronic road pricing system (ERP)—ERP 2 system, which was rolled out in phases starting 1 November 2023, will be mandatory for all Singapore-registered vehicles from 1 January 2027.
The current gantry-based ERP system was first introduced 25 years ago, in 1998, to manage road congestion by charging a fee whenever a vehicle passes through the ERP gantry during operational hours.
However, as the current system has reached the end of its shelf life, a tech refresh is needed to maintain operational efficiency. The new ERP 2 system, which leverages the Global Navigation Satellite System (GNSS), is not only expected to be a more feature-rich system that goes beyond congestion charging but also improves traffic management and transport planning and provides value-added services to motorists.
Here’s what you need to know about ERP 2.0.
ERP 2.0 System Leverages New Technology That Removes The Need For Physical Gantries
With the ageing of the current ERP system, which over time has become increasingly expensive to maintain, the new ERP 2.0 system can be seen as a much-needed tech refresh that incorporates new technologies and capabilities.
Unlike the current ERP system, which uses entry-or point-based charging, the ERP 2.0 leverages the Global Navigation Satellite System (GNSS). This allows it to determine the location and process a distance-based ERP charge, thereby eliminating the need for physical gantries that take up space and are costly to maintain. According to LTA, there are 95 physical gantries, of which only 22 are operational. These gantries would be gradually removed by the end of 2026. In their place, other visual markers/signages will be placed to inform motorists of the ERP charging locations.
Strict Safeguards Are Put In Place For Data Privacy In ERP 2.0
While the ERP 2.0 system will collect data from users like all GNSS, GPS, and payment systems, there are strict safeguards for data privacy to ensure charging transactions and data are handled securely.
LTA will only use anonymised or aggregated data for traffic management and transport planning purposes, meaning personally identifiable information is removed. According to LTA, it will only use vehicle-specific data for payment, charges, and enforcement, such as against non-payment of ERP charges.
Motorists Will Be Able To Access More Features With New On-Board Unit (OBU)
In addition to the current features, motorists with the new OBU would be able to receive real-time road safety information such as the locations of nearby school zones, Silver Zones (residential areas that have a high proportion of seniors), bus lanes, and speed cameras. This would provide better warning to motorists to regulate their speeds in these zones.
The OBU will also provide alerts when approaching ERP-charging locations and display real-time traffic incident alerts that can help motorists with plan their travel route. The OBU also allows motorists to pay for usage licences such as off-peak cars, classic/vintage vehicles, tolls (for Singapore-registered vehicles only) at existing Woodlands and Tuas checkpoints, and roadside parking.
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The OBU Configuration Depends On Your Vehicle Type And Choice
Unlike the current single-piece In-vehicle Unit (IU), the new three-piece OBU for cars and other vehicles comprises an Antenna, Processing Unit, and an optional Touchscreen Display.
The Antenna, which will be mounted on the windscreen, communicates with the satellite system and carpark gantries. For the Processing unit, which processes all payment-related transactions, and where your valid CEPAS should be inserted, it will (typically) be mounted on the side of the front passenger footwell. However, you can also install it at the driver’s footwell depending on the car model.
As for the Touchscreen Display, the only optional component of the OBU, you also have the option to download the mobile application on your smartphone and pair it with your OBU. It provides a host of benefits to motorists in terms of accessing information and making the relevant payments.
New three-piece OBU design for cars and all other vehicles–Source: LTA
As for the new OBU design for motorcycles, it will be integrated into a single-piece design that includes a Processing Unit and a small touchscreen for riders to toggle different functions. Similar to the current IUs, the new OBU will be mounted on handlebars.
New single-piece OBU design for motorcycles–Source: LTA
No Immediate Plans To Change The Current ERP Charging Framework
According to LTA, there are no immediate plans to impose distance-based road pricing, and any plans for such pricing using ERP 2.0 are still several years away. Hence, even after the installation of the OBU, motorists can expect the current form of congestion pricing to continue.
However, the ERP 2.0 will enable authorities to introduce new toll charging points and spread out the ERP charges in smaller amounts across multiple locations rather than be limited to one location. This will enable the authorities to be more precise in targeting road congestions compared to the current system.
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Free Installation Of OBU For Singapore-Registered Vehicles To Be Completed By End-2026
Existing individual vehicle owners who have not installed an OBU will receive a final reminder from LTA from 15 February 2026. They will have 3 months from the date of reminder to install the OBU free of charge; thereafter, a fee of $35 for motorcycles and $70 for all other vehicles will apply.
All OBU-related services such as installation, modification, repositioning, repair and advertising must be performed by authorised technicians. Unauthorised servicing or tampering with an OBU may result in a fine of up to $20,000, jail term of up to 12 months, or both.
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Daily-Flat ERP Fee Will Apply To Vehicles That Forgo The OBU Installation
Classic or vintage cars and vehicles under the Restricted Use Scheme – such as airport and port vehicles and construction equipment – are exempt from installing an OBU. However, owners of these vehicles, as well as owners of foreign-registered vehicles who forgo OBU installation, will be required to pay a daily flat rate for each day the vehicle is used on roads while the ERP is in operation.
According to LTA, the fee is $3 for motorcycles and $10 for all other vehicles.
This article was first published on 9 November 2023 and was updated with new information.
