ERP admin fee waived from Oct 1 for payments made within 5 days
From Oct 1, the $10 administrative charge levied on motorists who fail to pay Electronic Road Pricing (ERP) charges when they pass gantries will be waived if they settle their missed toll charges within a five-day grace period, Transport Minister Chee Hong Tat said on Aug 30.
The move comes ahead of a new feature that will be rolled out in mid-2025 on the next-generation ERP 2.0 on-board unit (OBU) that will alert motorists to missed payments as well as facilitate payments, the Land Transport Authority (LTA) said on the same day.
Mr Chee told reporters that the roll-out of the satellite-based ERP 2.0 system means motorists can eventually make such payments via the OBU display.
“With the installation of ERP 2.0, there’s no longer a need for us to send them a letter, and therefore, there’s no longer a need for LTA to charge them the $10 admin fee,” Mr Chee said at the Ministry of Transport’s office in Alexandra Road.
The installation of OBUs will be completed by 2026, with about 100,000 vehicles having them to date, Mr Chee said.
As only about 10 per cent of Singapore’s total vehicle population is fitted with the new OBUs, Mr Chee said the move to waive the administrative charge was an interim solution for motorists – whether they have the new units in their vehicles or not.
At present, if a motorist does not pay ERP charges due to a defective in-vehicle unit, an expired or improperly inserted stored-value card, or insufficient value in the card, the motorist will receive a letter within several days.
The motorist will be required to settle the missed ERP charge, along with the $10 administrative charge. The charge is $8 if the motorist pays online, such as through LTA’s One Motoring website.
This charge is meant to cover the costs LTA incurs to recover outstanding payments, said the authority. Failure to settle the missed ERP charge and administrative fee will result in a $70 fine.
Right now, some 500,000 such letters notifying motorists of their missed ERP charges are sent every year, said Mr Chee.
From Oct 1, LTA will send motorists SMS notifications for missed ERP payments instead of the current practice of mailing letters, thereby allowing the waiver of the administrative charge within the grace period.
Motorists will have five days from the date the SMS is sent to pay the missed ERP charges. They will not be required to pay the $10 administrative charge if they make payment during this grace period.
But if the missed ERP payment is not settled within this five-day period, LTA will issue a letter to the motorist who must pay the missed ERP charge, on top of the $10 administrative charge. If the motorist still fails to do so, he will be fined $70.
Describing the changes as a “win-win outcome” for the Government and the people, Mr Chee said LTA can use the resources, such as the time and labour saved from mailing letters, to focus on other important areas.
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