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New ERP 2.0 system

Did you know that back in 1975, all cars had to get a licence in order to enter the central business district (CBD), but you were exempt if you had at least four people in your car? Those were the days of motorists sticking their hands out of their car windows to indicate with their fingers how many passengers they still needed to hit that quota. What a sight!

Whoosh, time flies and we’re now in 2024, and while we’re sadly not all commuting to work on hoverboards, the ERP system we’ve known and loved (okay, to be honest it’s perhaps more of a love-hate relationship) is getting a complete upgrade to ERP 2.0.

What will ERP 2.0 mean for you, and what are some important things you should absolutely pay attention to?

In this article, we cover everything you need to know about ERP 2.0 and how it will affect motorists in Singapore in these next 21 questions (and answers!).


1. What’s the biggest change for motorists with ERP 2.0?

Replacing your In-Vehicle Unit (IU) with new On-Board Units (OBU) is probably going to be the greatest change for motorists with ERP 2.0.

The new OBU for cars is made up of three pieces:

  • A processing unit
  • An antenna mounted on the windscreen
  • A touchscreen display

Meanwhile, the OBU for motorcycles is a single-piece unit mounted on the handlebar.

The OBU comes with a five-year warranty.

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Source: LTA


 

2. Why is the OBU different for cars vs motorcycles?

The LTA has explained that each OBU has been created to adapt to the indoor vs outdoor environment, taking into consideration the heat that accumulates within a car’s interior, which is not a problem when it comes to motorcycles.

An OBU created for cars will not work for motorcycles; and vice versa, the single-piece OBU for motorcycles will not be effective in a car either.
 

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3. How will these new on-board units be installed?

All new vehicles (including motorcycles and scooters) from 1 May onwards will already come with this new OBU pre-installed.

For older vehicles, this change will take place in batches. This will begin with existing local motorcycles from 1 May 2024 onwards. Owners can expect to receive a notification from LTA via letter, email or SMS when it's their turn to install the new OBU, together with instructions on how to book an appointment. Their installation phase for existing cars will come after.

This installation exercise will continue until the end of 2025, so don’t be alarmed if you have not received a notification yet.
 

4. How much will the new OBU cost to install?

Installation of the new OBU in your vehicle will remain completely free as long as it’s installed within the two-month timeframe extended to you in your notification from LTA. Vehicle owners who miss their stipulated period will be charged a subsidised installation fee of $35 for motorcycle owners and $70 for other vehicles.

Until the transition to ERP 2.0 is completed, the OBU for all new vehicles will continue to be charged at a subsidised rate of $158.70 inclusive of GST (same as IUs). This rate excludes installation fee. A final price of the OBU will be announced by LTA after the transition to ERP 2.0.
 

5. Must you install all three components of the new OBUs?

Some feedback has suggested that the public find the three-piece set a little too bulky, and in response, the LTA has said that “motorists can opt out of installing the touchscreen display and get key information via mobile apps on their smartphones instead.” However, the processing unit and antenna must still be installed.
 

6. What’s the benefit of installing the touchscreen display over using a mobile app?

The LTA has cited a few examples where having the touchscreen display may be better than relying on your mobile app: for example, if your phone app crashes, your phone battery may be dead, or you are unable to connect to your cellular network while driving.

On the other hand, the OBU is connected to your car’s battery and is satellite-based, reducing mid-drive operational fallout.

Installing the touchscreen display allows motorists to access the full suite of charging-related information and traffic alerts, easily deactivate CEPAS card when using complimentary parking ticket, and pay for roadside parking in the future. The mobile app provides limited access to charging-related information and traffic alerts.
 

7. Is it safe to have another touchscreen display installed?

The LTA has done the backend research to ensure that the position where the touchscreen display is installed on a vehicle’s windscreen does not actually obstruct a driver’s field of vision. In addition, the touchscreen interface is automatically disabled when the vehicle is moving at speeds above 15 km/h. Of course, motorists can also choose not to install the touchscreen display and use a mobile app instead

However, if you wish to install the touchscreen display after the initial OBU installation, you are required to pay for the service as it is beyond the scope of the initial free OBU installation. The service fee would be determined by the workshops individually and may not be uniform across the industry. Do check with a few workshops before making your decision.
 

8. Which mobile apps are compatible with ERP 2.0?

According to the LTA, three apps that are currently compatible with the new ERP 2.0 system include ERP 2.0, Breeze, Galactio and Motorist Super App, and they can be paired via Bluetooth.

However, LTA has also released a software development kit to allow more developers to create ERP 2.0-integrated apps, so perhaps we’ll see more coming up in the future.
 

9. What kind of information will the new OBU provide?

Besides information on ERP locations and charges, the OBU will be able to provide real-time road traffic updates, point out nearby school zones and silver zones, speed cameras and bus lanes.

In future, the OBU will also support additional features such as roadside parking payment, and real-time traffic alerts of road closures, accidents, or heavy traffic. Toll payment when driving into Malaysia will also be implemented in time to come.
 

10. Does it matter where the processing unit is installed?

It has been suggested that you can install it under your dashboard, or on the side of the front passenger footwell. If these areas are not feasible, the authorised workshop will suggest a suitable alternative and confirm with you before installing.

If your OBU was installed on or before 8 May 2024, you are eligible for a one-time change in the position of your processing unit for free. This free repositioning of your OBU will be up till 31 August 2024. 

Contact LTA Call Assist Service at 6377-2255 and they will advise you on the specific OBU Care Centre to contact for the repositioning of your processing unit.
 

11. How does payment work with the new OBU system?

Motorists who usually pay ERP charges via a CEPAS card with stored value on it, such as the EZ-Link Motoring Card, or NETS Flashpay or NETS Motoring Card, will still have to insert the card directly into the processing unit.

If you prefer backend payment options, such as EZ-Link Motoring Service, or NETS Virtual CashCard, then you will continue to receive your ERP charges billed directly to your credit or debit card.

One new feature the OBU presents is the possibility for drivers to temporarily disable their CEPAS card by pressing a button on a touchscreen display instead of having to manually remove the card when it's not needed in certain carparks.
 

12. Will the new OBU drain the car’s battery?

The new OBU will require more power to run than its predecessor, the current IU. However, this difference should be minimal and “unlikely to draw more power than, say, a security camera system,” according to LTA.
 

13. How long does it take to install the new OBU?

Currently, installation times may vary, depending on the make & model and the condition of the vehicle and the selected workshop. The authorised workshop will be better able to give you an estimated installation time when you arrive there. You will also be given an introductory e-brochure and a brief by the workshop on the OBU and its features.
 

14. Will ERP charges increase with this new ERP 2.0 system?

The LTA has announced that there will be no changes to ERP charging framework for now.
 

15. What do you have to do after the new OBU is installed?

Nothing. The transition has been designed to be seamless, with no difference whether you’re parking at a multi-storey car park (MSCP) or entering into an ERP zone. As the OBU number will be the same as your old IU number, arrangements such as season parking will be ported over automatically.
 

16. Are there vehicle owners that are exempt from having to install an OBU?

Yes. Installation of the OBU is optional for owners of classic and vintage cars. However, the LTA has also made clear that those who choose not to will be subject to “further usage restrictions as well as separate congestion fees.”
 

17. Will we be seeing distance-based charging being implemented soon?

The LTA has said that while the new ERP system can support distance-based charging, it won’t be something they will be implementing in the next few years, so motorists will just have to wait to see this become a reality some time in the future.
 

18. Why is there even a need to go from ERP 1.0 to ERP 2.0?

The short version is: Our current ERP system is old. ERP has been up and about since 1998, so that’s been 26 years without a tech upgrade, essentially. ERP 2.0 will not only upgrade the framework, but also completely eliminate the need for more bulky ERP gantries to be built around the island, since it runs on Global Navigation Satellite System (GNSS).

ERP 2.0's GNSS capabilities will also provide useful data for LTA to further improve congestion management and transport planning in Singapore, to create smoother driving for all citizens.
 

19. Will we see ERP gantries being phased out?

ERP gantries will gradually be removed once all vehicles – an estimated one million vehicles in Singapore, by the way! – are fitted with the new OBUs.

However, some gantries will still remain in place, especially the ones in the CBD area. The sheer number of skyscrapers crowded in this area may distort satellite location signals, so some street-level gantries will still be needed.

Post-installation period, enforcement cameras are likely to be placed to ensure that all motorists have their new OBU correctly installed.

For areas that are truly gantry-less, the LTA is currently researching the best way to place signage along the roads to indicate clearly where ERP zones begin and end.
 

20. What kind of inconveniences might we encounter?

The new OBU will be compatible with all Electronic Parking System (EPS) car parks that are supported by CEPAS cards. However, certain car parks may still have to upgrade their systems to support the new OBU. In the transition period, it is recommended that all motorists — even those who currently use backend payment methods — to have a CEPAS card on hand and to tap in and out manually if that particular car park system has yet to be upgraded.

Note also that the removal of the IU hardware and replacement with the new OBU system may cause minor damages to the solar film on your windscreen if you have one.
 

21. Are there any privacy concerns with the new ERP 2.0 system?

The new ERP 2.0 system collects user data, but the LTA has stressed that data privacy is a huge concern for them, and that they have put in “strict safeguards” in the way such data is handled.

According to the LTA, most of the data is anonymised, removing any “personally identifiable information”. The only time vehicle-specific data is accessed will be to ensure correct payments.

Third-party mobile apps will only have one-way access to key ERP information from the OBU, and will not be able to read other personal data or make any changes. Motorists who use these third-party apps will also need to provide consent for sharing their OBU data.

To find out more about your OBU and how to book your installation appointment: Click here for the LTA OBU brochure

For any other questions on ERP 2.0, contact LTA’s Call Assist Service at 6377-2255.

Looking to install your OBU or upgrade to the new ERP 2.0 system? Make your booking now at https://www.vicom.com.sg/OBU for a quick and hassle-free installation.


Sources:

https://www.straitstimes.com/singapore/transport/next-gen-erp-on-board-units-to-be-installed-from-nov-motorists-can-opt-out-of-touchscreen-display
https://www.straitstimes.com/singapore/transport/new-erp-system-to-start-2023-but-no-distance-based-charging-just-yet

https://www.straitstimes.com/singapore/transport/what-you-need-to-know-about-the-next-generation-erp-system-and-new-on-board-unit

https://www.straitstimes.com/lifestyle/motoring/10-things-you-should-know-about-erp-20

https://www.straitstimes.com/singapore/transport/new-erp-system-motorists-think-3-piece-onboard-unit-too-big-and-clunky

https://onemotoring.lta.gov.sg/content/onemotoring/home/driving/ERP/erp-2-0.html