New ERP System Will Charge Drivers By Distance Travelled

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ERP In-Vehicle Units Will Be Replaced For Free Starting 2020

UDPATE (18 Jun): Images of the ‘new’ ERP readers in this article are not the final versions but photo illustrations from 2016.

The Electronic Road Pricing (ERP) system has been a fairly efficient way of reducing congestion for many years.

In a bid to make the system ‘fairer’, a distance-based charging system will be replacing the current fixed-location one.

The current in-vehicle units (IUs) will be replaced free-of-charge at vehicle inspection centres and designated workshops with new on-board units (OBUs) “progressively” from 2020.


Starting 2020, there will be an 18-month “switchover period” for road users to replaced their IUs with the new OBUs. This will ensure that by the time the new distance-based charging system is up and running, everyone would have had an OBU installed.

Pay based on distance travelled

Instead of being charged when you pass an ERP gantry, the new system will charge you based on the distance you travel on congested roads.

The charging process in 4 steps

This means that you won’t be charged the full price if you’re taking a quick turn into the CBD for a shortcut.


Once the new system is fully in place, you can expect the current ERP gantries to be removed.

In-vehicle units replaced for free

According to the Straits Times, the first replacement will be done for free at appointed workshops and vehicle inspection centres around Singapore.

The new system will also offer other functions as well.

Not only does it track your distance travelled, you can also check on live traffic information and use it for coupon-less parking.


The live traffic information will tell you when there’s an accident or a road closure so you can plan your route better. Basically, GPS without wasting your phone’s battery.


Potentially more expensive Grab & cab rides

Though this may make the trips cheaper for car-owners, private-hire vehicle drivers and taxi drivers may suffer as they travel great distances every day.

So for those of you who regularly use Grab or cab, these additional costs may be borne by you.


As for car owners, you may want to start planning for new routes to save money.

Featured image from Facebook and Google Maps.

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