Ever wondered what’s the deal with ERP 2.0 and OBU? You’re not alone.
As we move into new technology, these in-vehicle tech updates have left many scratching their heads. But don’t panic.
This guide covers everything you need to know about the changes coming your way.
Whether you’re keen to embrace the new tech or feel like you’re being left behind, arm yourself with the facts because you will have to switch eventually.
TL;DR: Ultimate Guide to ERP 2.0 and the New On-Board Unit (OBU)
Here’s what the article covers:
- What is ERP 2.0?
- New On-Board Unit Vs In-Vehicle Unit
- How much does it cost to install the new OBU?
- FAQs about ERP 2.0 and OBU
Electronic Road Pricing (ERP) 2.0 at a Glance
ERP 2.0 is set to replace Singapore’s current Electronic Road Pricing (ERP) system in the coming months.
So, what’s different about ERP 2.0?
Unlike the current system, which uses entry or point-based charging, ERP 2.0 utilises the Global Navigation Satellite System. This system calculates charges based on the distance travelled, eliminating the need for physical gantries, which occupy space and are expensive to maintain.
According to the Land Transport Authority (LTA), these gantries will be gradually removed by the end of 2025, and there will be visual markers and signage to inform motorists of the ERP charging locations.
ERP 2.0 Vs ERP
ERP 2.0 introduces a new onboard unit (OBU) that enhances the driver’s navigation experience.
It offers real-time traffic data, accident reports, and mapping updates to provide the most efficient routes. The optional onboard touchscreen display or head-up display provides turn-by-turn directions with clear instructions, reducing reliance on outdated maps and minimising unexpected delays.
This is a summary of the upcoming features you can expect:
| Advanced Safety Systems | To improve road safety, ERP 2.0 includes advanced driver assistance systems (ADAS) like emergency braking, lane-keeping assist, and blind spot monitoring. These features detect potential collisions and take action to avoid or mitigate them. |
Enhanced Connectivity |
ERP 2.0 offers greater connectivity between your vehicle and mobile devices. The onboard touchscreen allows you to access music streaming, social media, and navigation. Some vehicles may even provide Wi-Fi hotspots for internet access on the go. |
Over-the-Air Updates |
With ERP 2.0, software and map updates can be downloaded over the air, so you’ll always have the latest features and functionality without visiting a service centre. |
The New On-Board Unit (OBU)
Undoubtedly, the biggest change in ERP 2.0 is the new OBU. Unlike its predecessor, the In-Vehicle Unit (IU), which could only deduct charges in preset amounts, the OBU offers more flexible pricing that reflects actual road usage.
The new OBU comprises an antenna, a processing unit, and an optional touchscreen display.
From 1 May 2024, all new vehicles will be fitted with OBUs, and existing vehicles will be progressively notified in the latter part of 2024. You can pair your phone with the OBU by registering your smartphone on OneMotoring Digital Services and pairing it via Bluetooth.
Are OBUs Different for Cars and Motorcycles?
Yes, motorcycle OBUs are smaller and often integrated into the instrument cluster or handlebars. They focus on safety features like collision detection, lane-keeping, and adaptive cruise control.
How Much Does OBU Cost, and What is its Installation Cost?
Free OBU and Installation
Most Singapore-registered vehicles will receive an OBU free of charge. If mandatory, the LTA will notify you to replace your current IU within your allocated installation period. New vehicles registered from 1 May 2024 will come with OBUs.
Installation Fees
LTA will send you a letter, email, and/or SMS notifying you of your two-month installation period and inviting you to book your installation appointment.
If you miss your allocated installation period, you will be required to pay part of the installation fees, which are $35 for motorcycles and $70 for other vehicles.
Installation Process
Installing the OBU at approved fitment centres takes about two to three hours.
In terms of configuration, the antenna will be mounted on the windscreen, and the processing unit, responsible for handling all payment-related transactions, is typically mounted on the side of the front passenger footwell or driver’s footwell, depending on your car model.
If you prefer, you can also replace the optional touchscreen display with a mobile application on your smartphone.
Payment and Privacy
How Payment Works
All vehicle owners must register their vehicles for an account, providing details like the vehicle number plate and a preferred payment method (credit card, debit card, or GIRO).
Charges for road usage will be deducted automatically, and itemised statements will be available on the ERP website or app. You can set a maximum charge limit to avoid unexpectedly high bills.
Privacy and Data Protection
To safeguard your privacy and personal information, strong security measures—including data encryption and access control—will be in place. Only non-identifiable data may be used for traffic monitoring and optimisation.
FAQs About ERP 2.0 and OBU
Do I have to switch to ERP 2.0 and OBU?
Yes, all vehicles using priced roads must install an OBU by the end of 2025.
Will I still need to display an ERP cash card?
With the new OBU, you can’t use a regular cash card, but you can still use a valid CEPAS card.
To avoid manual top-ups, it is recommended that you sign up for the NETS auto-top-up option. While ERP payments can also be made via backend payment options, not all carparks support this, so keep a valid CEPAS card for parking payments if necessary.
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