Electronic Road Pricing
[1][2] The ERP was implemented by the Land Transport Authority (LTA) on April 1, 1998[3] to replace the preceding Singapore Area Licensing Scheme (ALS) that was first introduced on 11 August 1974 after successfully stress-testing the system with vehicles running at high speed.
[4][5] Singapore was the first city in the world to implement an electronic road toll collection system for purposes of congestion pricing.
A device known as an In-vehicle Unit (IU) is affixed on the lower right corner of the front windscreen within sight of the driver, in which a stored-value card, the NETS CashCard, is inserted for payment of the road usage charges.
Mitsubishi Heavy Industries Ltd sold the IU technology to Singapore, and the project was spearheaded by a consortium comprising Philips Singapore Pte Ltd., Mitsubishi Heavy Industries Ltd., Miyoshi Electronic Corporation and CEI Systems and Engineering (now known as CSE Global Ltd.) in 1995 through an open tender.
[10][11][12] Co-developed by NCS Group and MHI Engine System, the Onboard Unit (OBU) will be rolled out in phases and the installation is slated to be completed by 2025.
The OBU is expected to have various features, including being able to display real-time traffic information, and facilitate couponless parking and automatic payment.
Foreign visitors driving foreign-registered private vehicles on priced roads, during the ERP operating hours, could choose to either rent an IU or pay a daily flat fee of S$5 regardless how many ERP gantries entered, the payment is done and information is stored by Autopass Card until the vehicle leaves Singapore.
[citation needed] In an effort to improve the pricing mechanism and to introduce real-time variable pricing,[17] Singapore's Land Transport Authority, together with IBM, ran a pilot from December 2006 to April 2007, with a traffic estimation and prediction tool (TrEPS), which uses historical traffic data and real-time feeds with flow conditions from several sources, to predict the levels of congestion up to an hour in advance.
[21] In 2021, the LTA stated that the existing ERP system, which was about 22 years old at that time, was "reaching the end of its operational life".
The new OBU was intended to be able to provide real-time traffic information and alert drivers of toll roads and the associated charges well in advance.
[23] It was also reported that as a result of the COVID-19 pandemic in Singapore in 2020, the fitting of the new OBUs would be delayed to the second half of 2021, with the new ERP system expected to become operational in mid 2023.
[25] Then-Deputy Prime Minister Heng Swee Keat also stated that the technology required for distance-based charging "is still several years away".
[26] In March 2024, it was reported that various motorists using the ERP 2.0 system had complained about the location of the card reader component of the OBU.
The LTA also stated that it would allow drivers to decide where to install the card reader component, subject to space constraints in the relevant vehicle and technical feasibility.
According to the LTA, the OBU had been tested against the International Electrotechnical Commission’s IEC-60068 and IEC-60529 and therefore "meets the relevant global benchmarks for electronic devices" and "when properly installed, it is safe and reliable to use in our operating environment".
The rising traffic has prompted the LTA to encourage more Singaporeans to switch to public transport as part of the country's general "car-lite society" plan, by building more MRT train lines and introducing more bus services.
[34] The ERP system attracted the attention of transport planners and managers in other metropolitan areas, particularly those in Europe and the United States.
[35] The congestion tax was implemented on a permanent basis on 1 August 2007,[36][37] after a seven-month trial period was held between 3 January 2006 and 31 July 2006.
[38] In 2007, Dubai, in the United Arab Emirates, implemented a corridor congestion pricing scheme called Salik which works on similar principles.
