In Singapore, the current Electronic Road Pricing (ERP) system is being upgraded to the ERP 2.0 system, supported by Global Navigation Satellite System (GNSS) technology. This transition began in November 2023 with fleet vehicles and is set to be implemented across all vehicles by the end of 2025. The new system involves replacing the existing in-vehicle unit (IU) with an On-Board Unit (OBU), which offers enhanced features like real-time traffic updates, road safety notifications, and the ability to handle payments for ERP charges and roadside parking through a touchscreen display or compatible mobile applications.
The installation of the OBU is free during the designated two-month period specified in the notification each vehicle owner will receive. The ERP 2.0 system will retain the current charging framework during the transition, meaning there will be no immediate shift to distance-based charging, although the technology would allow for this in the future.
Once fully implemented, ERP 2.0 will eliminate the need for physical gantries, which are space-consuming and costly to maintain. This system is designed to be more efficient and to provide better data for traffic management and planning [[❞]](https://www.lta.gov.sg/content/ltagov/en/newsroom/2024/3/news-releases/on-board_unit_installation_extended.html) [[❞]](https://www.lta.gov.sg/content/ltagov/en/newsroom/2023/10/news-releases/erp-2-0-on-board-unit-installation-starting-in-november-with-fle.html) [[❞]](https://onemotoring.lta.gov.sg/content/onemotoring/home/driving/ERP/erp-2-0.html) [[❞]](https://mothership.sg/2023/10/new-erp-on-board-units/).
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