ERP 2.0 in 2020?



Get ready for ERP 2.0 .... or may be not.



The rumour mill is going at top speed.  LTA may introduce Distance base pricing in 2020



* Updated 18 06 - LTA had clarified that the device in the pictures is a trial unit. Nonetheless, distance base travel is still on the cards for a progressive roll out in 2020.


With the aim of making every car a grab car implementing distance based ERP ( otherwise known as milking you for every step you take) , LTA will be introducing  satellite-based Electronic Road Pricing System  for vehicles. According to reports, the first  replacement will be done 'free of charge' and can be done at vehicle inspections centers and selected approved workshops.
Base on trial unit, these seem to be on the wishlist of LTA.

Cash Card Balance
Unlike the previous version, it will show your balance in full colour. Green for normal balances and Red for low balances.

Possible GPS?
There is a distance and road indicator on the menu. It might have a GPS feature attached.

Distance based charging

It seems like the distance base is going to be a reality. From the screenshots, it looks like it might be $.50 for every km. With this distance-based travel charges, it feels more like taking a taxi instead of driving your own car.

At $0.50 per Km, it is indeed pricey. Average car usage is about 10,000 km per year. That would easily mean an increase of $5000 per year on usage. Given that some cars are depreciating for that amount of money, it would deem a little too high. We hope this is not the new reality.

Roadside EPS


 This is interesting, it this is true, it could replace the parking coupons or the parking.sg app.

Traffic information Feed
Another indication that GPS might be in the system with Traffic Information feed. This could be a good way to save time on the road. However, traffic diversion usually involves a longer route. That would mean more cost per trip. Would someone now choose to be stuck in traffic rather than paying the higher price to travel?

The upgrade to ERP 2.0 might be advance in technology. Given that modern cars now comes with a host of screens on the dashboard. Adding another screen might be a bane rather than a boon. You might end up watching the screens and not the road like you are supposed to!

What happens after 2020 implementation? 

Higher Taxi  / Grab fares in the future?
With distance base ERP, taxis or Grab drivers might pass the extra cost to customers. With this implementation in 2020, there might be a shakeup in the private hire/taxi segment.

Lower COE ?
As the price of travelling becomes more unattractive, it might be a short term nudge downwards on the COE of cards. Already , we are seeing lower COE across the board with this rumour of distance base travel.  Nonetheless, we think it may be short term as the alternatives such as taxi or grab would probably increase in prices. Unless the locals are planning to use more buses and trains, COE should eventually rebound. Look out for lower COE if you are planning to get a car.


So, what do you think of ERP 2.0? 

All Photos Credit to My Car Forum

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