Installation of On-Board Units for Next-Generation ERP System to Commence in Second Half of 2021

News Releases 08 Sep 2020 In-vehicle Unit (IU) ERP system Coronavirus Disease 19 (COVID-19)

No changes to congestion pricing framework

The Electronic Road Pricing (ERP) system was first introduced more than 20 years ago in 1998 and the infrastructure is reaching the end of its operational life. In the meantime, technology has advanced and offers us better solutions. The Land Transport Authority (LTA) will therefore be replacing the existing system with a next-generation ERP (nexgen ERP) system that leverages Global Navigation Satellite System (GNSS). It does away with the need for bulky gantries on our roads. It can incorporate value-added services such as traffic information. While the technology and system have been replaced and upgraded, the way congestion pricing is being levied today will not change.

Existing Owners to Receive First On-Board Unit Free

2     The nexgen ERP system will use a new on-board unit (OBU) instead of the current in-vehicle unit (IU). Besides providing information on ERP charging locations and rates, the OBU will provide additional information such as real-time road traffic updates, and locations of nearby School Zones and Silver Zones to alert motorists to look out for more vulnerable road users.

3     The first OBU will be installed free of charge for existing Singapore-registered vehicles. Due to the impact of COVID-19 on global supply chains, the installation exercise will commence in the second half of 2021 and take place over a period of 18 months.

No Change to Current Congestion Pricing Framework

4     Road pricing forms part of our efforts to control congestion and keep traffic as smooth-flowing as possible. Motorists are familiar with the existing system of cordon-based congestion pricing, such as for the Central Business District, and point-based congestion pricing for specific roads and expressways.

5     The existing cordon-based and point-based congestion pricing framework will remain when we switch over to the nexgen ERP system in mid-2023. ERP rates will continue to be reviewed based on traffic speeds and congestion levels. ERP charging locations will also be clearly indicated, just like now, but with smaller and slimmer gantries.

Seamless Transition for Motorists

6     Since the OBU is needed to detect if the vehicle is travelling on an ERP-priced road and deduct any applicable ERP charges, it will be mandatory for Singapore-registered motor vehicles to have the new OBU following the end of the OBU installation exercise[1]. The new OBU will have two designs:

a)    Motorcycles: A single-piece design tailored for mounting on a motorcycle.

b)    All other vehicles: A three-piece design, comprising an antenna and a touchscreen display tailored for mounting to the windscreen, and a separate processing unit that can be mounted beneath the dashboard.

See Annex A for photographs of the OBUs.

7     The new OBU is designed to be compatible with existing systems, including ERP charges and parking. Motorists can continue to use their CEPAS cards (NETS FlashPay and EZ-Link cards), or credit or debit cards to make payment.

Strict Safeguards for Data Privacy

8     Like all GNSS, GPS and payment systems, nexgen ERP will collect data from users. LTA will only use anonymised or aggregated data for traffic management and transport planning purposes. Vehicle-specific data will be used only for payment, charges and enforcement, such as against non-payment of ERP charges. Summons related to such non-payments will largely be auto-generated, like today. To prevent unauthorised access and improper use of the data, there will be robust security and strict safeguards in place, including penalties under the Public Service (Governance) Act.

9     LTA will continue to monitor the impact of COVID-19 on the OBU installation timeline and will provide the motor vehicle industry and motorists with sufficient notice for a smooth transition.


[1] Certain vehicles will be exempted from the mandatory OBU requirement – see Annex B for details. 

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