Ask Motorist: When Will The New ERP System Start? How Much Will I Be Charged?

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Motorist Ask Motorist How Much Will I Be Charged Under Erp 2 July 2020
(Photo Credit: Straits Times)

Since there has been much buzz online recently from our previous article about the new ERP system, here’s an updated FAQ about what we know so far, and how it will affect you!

How much will I be charged under the new ERP system?

We are aware that there is discussion online that the price of “S$0.50 per kilometre” will be charged under the new ERP system. This assumption probably started because of alleged photos from a 2016 Land Transport Authority (LTA) study circulating on an online forum, which depicted a mock-up On-Board Unit (OBU) with a charge of “S$0.50/km” displayed on the screen.

LTA has already clarified that these photos are NOT actual depictions of the new on-board unit. No pricing details about the new ERP system have been revealed by LTA at this time either.

How will distance-based charging work under ERP2?

According to the Ministry of Transport (MOT), the next generation ERP system “will accommodate distance-based road pricing, where motorists are charged according to the distance travelled on the congested stretch”.

Based on this statement, it seems that motorists will only have to pay distance-based charging in congestion zones, rather than having charges imposed on them wherever they drive as some online have claimed.

MOT hopes that this method “will be more equitable than the current system, which charges all motorists the same amount regardless of the distance they travel on the congested road”.

Source: MOT

How will the congestion areas be determined?

LTA applies the 85th percentile speed measurement method to determine whether ERP rate changes are necessary. This method is an international traffic engineering practice for assessing traffic conditions.

What this means is that with the imposition of ERP in the congested areas, 85% of motorists will experience speeds above the threshold limit.

Source: MOT

When will ERP2 come into effect?

ERP2 was initially planned to be rolled out progressively this year, however, Deputy Prime Minister Heng Swee Keat announced during the Singapore Budget 2020 that “distance-based charging using ERP is still several years away”.

Source: The Straits Times

What are your thoughts about the soon-to-be-introduced ERP2? Share with us what your views on Motorist Community, our Telegram chat!

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1 Comment

Gordon Ho
One of the most concise write-up in simple to understand FAQ format I have came across regarding the topic so far👍🏼👍🏼

almost 4 years ago