Everything You Need To Know About The New ERP That’ll Turn Every Car In S’pore Into A Taxi In The Future

The Land Transport Authority (LTA) announced earlier this month of a new Electronic Road Pricing (ERP) system.

On Sept 8, they unveiled ERP 2.0, which will mark a new phase in road pricing. Touted as a next-gen, technologically-advanced system, its news came riddled with jargons like satellite-tracking and congestion pricing.

It will also supposedly turn every car into a metered taxi?

Fret not, there’s still plenty of time to familiarize with this new overlord, which won’t be reigning our wallets till mid-2023.

So, here are ten things about the new system. Start getting acquainted!

A brief history of ERP 2.0

The new system has in fact been decades in the making. LTA soon began developing a satellite-based, gantry-less ERP system after rolling out the current one in 1998.

Around 2006 and 2007, trials were conducted but concluded unsatisfactorily in terms of precision. Another round of trials in 2011, which cost about S$12 million to carry out, proved that the technology has sufficiently matured.

In 2016, NCS and MHI Engine won a S$556 million contract to build the system, which was due to be implemented this year.

However, the pandemic disrupted global supply chains, causing the launch to be postponed to 2023.

Why do we need ERP 2.0?

The current system, which is more than 20 years old, is expensive to operate and maintain, as it requires more gantries to be periodically erected.

Plus, as the distance travelled by a driver past a gantry is unaccounted for in ERP charges, pricing remains rather rigid.

The new system focuses on omitting the need for street infrastructure. Hardware could be deployed islandwide at a relatively low cost without taking up much physical estate.

In addition, it replaces the existing static cordon-based system with a congestion-pricing tool, charging drivers by distance instead of entry.

Personally, that’s going to give me anxiety every time I get behind the wheels. From then on, my friends need to jio me 3-5 business days prior so that I have time to research the shortest route and save a couple of bucks.

Will we end up paying more with distance-charging?

Short answer: it depends on usage, which is the basic concept of congestion pricing.

Distance-charging promotes fairness, which is not unlike the timed carpark charging system. As fees are incurred based on minutes parked, it can be cheaper than the previous block-based charges.

If you are willing to research and be more judicious when driving (like I said I would), you can plan for the most efficient routes to save money.

The public may also become motivated to opt for public transport when possible, which is great for the environment.

Sadly, distance-charging is ultimately stressful for Grab drivers and transport operators everywhere. Those who clock high mileages need to brace for heftier bills.

Why don’t we start distance-charging now?

Simply put, because the gahmen can hear everyone’s groans from miles away.

Since it takes some getting used to, the system will probably receive highly polarized reception during the initial adoption period.

Though the contractor has been ceaselessly running tests in a deserted location in Tuas South, they still anticipate some hiccups when it goes live.

Real-world conditions may pose unforeseen challenges to its precision.

If the hiccups amount to a fiasco of any scale while people are still skeptical of the system, it could have serious political implications.

Thus, it’s crucial that the gahmen finds the right time to start distance-charging, which according to Deputy Prime Minister Heng Swee Keat earlier this year, won’t be till a few years later.

Time to say goodbye to gantries… or not.

Unfortunately, we’re not quite ready to completely bid gantries adieu.

One of the aforementioned real-world conditions that are making the gahmen and contractor nervous is signal distortion.

Built-up areas such as the Central Business District could have a canyon effect which distorts satellite location signals.

To mitigate this, street beacons are required.

On top of that, there will be street signs alerting drivers to entering a charged zone. Enforcement cameras will also be put in place to spot those brave (or stupid) enough to tamper with or forgo their on-board unit (OBU).

You’re a metered taxi now, you gotta look the part

With the OBU, not only are we charged like metered taxis, but we also look the part.

On the dashboard perches a touchscreen with a front-facing antenna. Meanwhile, the centre console will be attached to a processing unit, which requires additional wiring and dismantling of dashboard components.

Car enthusiasts: *angry noises*

Though LTA is trying to devise a less obtrusive installation method, we’re stuck with the three-piece as of now.

Power drain of the three-piece on car battery

With a processor and monitor, drivers may worry of a potential battery drain.

While it may draw more power to work, the battery usage is comparable to that of a security camera system.

In short, nothing to fuss about.

OBU to display ERP charges

It would certainly be great if the OBU has functions akin to Waze, the popular mobile navigation app.

For instance, it could provide information on the charges along an intended route. Better yet, it displays alternatives for direct comparison.

According to LTA, the unit will indeed inform of charging location and rates, as well as real-time traffic updates.

Payment modes and data charges

The payment system for ERP 2.0 is similar to that of the public transit system.

OBU accepts contactless stored value cards, which is parallel to EZ Link cards. In the same vein as SimplyGo, drivers can also go card-less by registering their credit or debit cards to automatic deduction.

LTA assures that users will not incur data charges.

Carparks to be modified

The new OBU calls for an update on carpark systems so that the two can be compatible.

Otherwise, users will have to physically tap in and out.

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