LTA to waive S$10 admin fee for missed ERP payments if paid within 5 days

LTA to waive S$10 administrative fee for missed ERP payments if paid within 5 days

Motorists can breathe a sigh of relief with the Land Transport Authority’s (LTA) latest update.

Starting from 1 Oct 2024, the S$10 administrative fee for missing an Electronic Road Pricing (ERP) payment will be waived if the payment is made within a five-day grace period.

Under the new ERP 2.0 system, the On-Board Unit (OBU) will detect and process missed ERP payments, streamlining the process and reducing backend processing costs.

Reduces costs & enhances efficiency

Currently, motorists who miss an ERP charge receive notifications via physical letters, which involve printing and postage costs.

According to Channel NewsAsia (CNA), Transport Minister Chee Hong Tat said that approximately 500,000 of these letters are sent annually, which amounts to about S$5 million in administrative fees.

Mr Chee indicated that avoiding the costs associated with sending physical letters would allow LTA to allocate resources, time, and manpower more effectively to other important areas of work.

He added that this change would benefit both government departments and the public, enhancing efficiency for citizens and businesses alike.

Digital notifications of missed payments

Under the new system, motorists will receive notifications via SMS instead.

To ensure timely receipt of these messages, they should keep their mobile numbers updated on Singpass.

LTA is also working on an upgrade to the OBU that will notify motorists of missed ERP payments directly through the unit.

The rollout of this feature will begin in mid-2025, and LTA aims to complete full OBU installation by 2026.

Mr Chee noted that SMS notifications will serve as an interim measure until the OBU installation is fully implemented.

If a missed payment is made within the five-day grace period, the S$10 administrative fee will be waived.

However, after this period, LTA will revert to sending physical letters, and the administrative charge will apply.

There will still be a S$70 fine for failure to settle outstanding ERP charges.

Also read: ERP in focus: How S’pore became the first to develop an electronic road pricing system

ERP in focus: How S’pore became the first to develop an electronic road pricing system

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Featured image adapted from Wikipedia.