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How Singapore Connects | ERP 2, On-Board Units and Road Pricing

Bukit Timah Road near Sixth Avenue with traffic, shops and bank branches

How Singapore connects is not only about building more roads.

Sometimes connectivity improves when a city manages how existing roads are used.

Did you know that Singapore’s next-generation Electronic Road Pricing system will no longer depend on physical gantries to identify charging locations?

ERP 2 uses satellite-based positioning together with an On-Board Unit installed in vehicles. The vehicle knows when it passes a designated charging location, the applicable charge can be determined, and the same in-vehicle system can support traffic information and other road services.

The driver sees a road sign, road marking or OBU display.

The transport system sees location, time, vehicle movement and road-pricing rules.

This article follows Singapore’s road-pricing connection layer: ERP 2, GNSS, On-Board Units, charging locations, road markings, traffic information and the wider idea of using price and information to manage scarce road capacity.

The road network itself is explored in How Singapore Connects | Roads, Expressways and Junctions. Here the question is how road use becomes measurable and manageable without every charging point needing a physical gantry overhead.


Did You Know? ERP 2 Is Scheduled to Launch on 1 January 2027

LTA announced on 28 September 2026 that the ERP 2 system will launch on 1 January 2027.

From October 2026, motorists are progressively seeing new road markings and road signs at ERP charging locations before the new system begins.

LTA’s current announcement is available at New Road Markings and Signs to Support Transition to ERP 2.

The date matters because this article is being written during the transition, not after it.


The New System Uses GNSS Instead of Physical Gantries

GNSS means Global Navigation Satellite System.

The On-Board Unit uses positioning technology to determine when the vehicle passes a designated ERP charging location.

That removes the need for a large physical gantry to act as the charging detector.

The road-pricing boundary becomes digital geography.


Did You Know? More Than 98% of Eligible Singapore-Registered Vehicles Had Been Fitted by Late September 2026

LTA said on 28 September 2026 that more than 98% of eligible Singapore-registered vehicles had already been fitted with the ERP 2 On-Board Unit.

That installation programme is what converts millions of individual vehicles into participants in the new system.

Infrastructure is not only roadside hardware.

Sometimes infrastructure is distributed across the vehicle fleet.


The OBU Is a Road-Network Interface Inside the Vehicle

The On-Board Unit does more than identify ERP charging events.

It can also support traffic-related notifications and road information.

The vehicle gains a direct interface to transport-system data.

Road infrastructure moves partly from the roadside into the dashboard.


Road Markings Replace the Gantry as the Visual Cue

A physical gantry made an ERP charging point visually obvious.

ERP 2 changes that.

LTA is introducing new signs and road markings so motorists can recognise charging locations even though the charging system itself uses GNSS.

This is a useful interface principle.

When invisible digital infrastructure replaces visible hardware, the user still needs a visible cue.


Pricing Is a Demand-Management Tool

Road space is finite.

At peak times, too many vehicles trying to use the same corridor can create congestion.

ERP applies charges at selected locations and times as part of Singapore’s wider road-demand management approach.

The objective is not to create more asphalt at the charging point.

It is to influence the timing and route choices of some journeys.


Did You Know? Time Is Part of the Price

An ERP charge is not simply attached to a road forever at one fixed rate.

Charges can vary by location and time according to prevailing policy and traffic conditions.

That means one road can have different economic signals at different times of day.

Space stays fixed.

Demand changes.

The price can respond.


ERP Connects Location and Time

A road-pricing event needs to know:

  • which vehicle or OBU is involved;
  • which charging location was crossed;
  • when the crossing occurred;
  • which charge applied at that time; and
  • how the transaction should be settled.

This is why ERP is fundamentally a space-time system.


GNSS Makes Charging Geography More Flexible

A gantry is a fixed physical structure.

A GNSS-defined charging location is represented digitally.

That can make the system more flexible in how charging points are represented and updated, subject to policy, operational and legal requirements.

The charging boundary is encoded in the system rather than only in steel above the road.


ERP 2 Does Not Mean Distance-Based Charging Starts Immediately

A satellite-capable system can technically support more sophisticated charging models.

That does not mean every possible model is automatically implemented at launch.

The actual charging structure depends on the rules announced by LTA and the authorities.

This distinction matters.

Technology creates capability.

Policy decides how the capability is used.


Traffic Information Makes the OBU More Than a Charging Device

OneMotoring’s October 2026 service notices describe ERP 2 OBU traffic notifications such as travel time, traffic-road alerts and parking availability.

That turns the OBU into a mobility-information interface as well as a pricing interface.

The car becomes another connected node in the road-information network.


Travel-Time Information Connects Pricing to Route Choice

A driver deciding whether to use one route or another may consider:

  • travel time;
  • congestion;
  • ERP charge;
  • incident information;
  • parking availability; and
  • the final destination.

The journey decision therefore combines price and information.


ERP Connects to Real-Time Traffic Data

Singapore’s road-sensor and camera layer is explored in How Singapore Connects | Traffic Cameras, Road Sensors and Real-Time Traffic.

Road pricing is more meaningful when the transport authority understands how roads are actually performing.

Measurement supports management.


ERP Connects to Traffic Signals

Signal control in How Singapore Connects | Street Lighting, Traffic Signals and Night-Time Streets manages flow locally at junctions.

ERP operates at another scale.

Signals allocate time within a junction.

Road pricing influences demand across routes and periods.

Different tools manage different parts of the congestion problem.


ERP Connects to Public Transport

A road-pricing system does not exist in isolation.

Drivers can only change travel behaviour meaningfully when alternatives exist.

MRT, buses, walking, cycling and point-to-point transport all affect the choices available to a traveller.

That places ERP inside the wider network described by How Singapore Connects | Bus Interchanges, MRT Stations and Transfer Hubs.


ERP Connects to Parking

A driver’s journey does not end when the ERP charging point is crossed. How Singapore Connects | Parking.sg, Car Parks and Kerb Space explains the next problem: where the vehicle waits after arrival.

ERP 2 OBU services can also present selected parking-availability information.

Road demand and parking demand begin to share one digital interface.


The OBU Depends on Power and Electronics

A roadside gantry and an in-vehicle device have different maintenance profiles.

The OBU has hardware, software and communications functions that have to remain operational.

The system therefore adds another electronic subsystem to the vehicle.


The OBU Depends on Digital Mapping

GNSS tells the system position.

The charging database tells the system which positions correspond to charging locations.

This is another example of geospatial information becoming operational infrastructure.

The wider location layer is explored in How Singapore Connects | OneMap, Addresses and Location Intelligence.


Did You Know? A Charging Location Can Be Invisible to the Machine but Visible to the Driver

The machine recognises coordinates.

The driver recognises signs and road markings.

Both descriptions refer to the same event.

This is human-machine interface design in transport.


A Small Example: Morning Commute

A driver approaches a charging location.

Road signs and markings indicate the ERP zone.

The OBU detects the location through GNSS.

The applicable charge is determined according to the current ERP rules.

Traffic information may also help the driver understand conditions ahead.

One morning commute becomes a digital road event.


A Small Example: Route Choice

Two routes lead toward the same destination.

One is faster but carries an ERP charge.

Another is slower but avoids the charged location.

The driver chooses based on time, cost and preference.

Road pricing changes the decision landscape.


A Small Example: Parking Search

A driver nears the destination.

The OBU or another service provides parking-availability information where supported.

The vehicle leaves the road network and enters a car park.

Movement becomes storage.


What Can Break the ERP 2 Connection?

  • OBU hardware fault;
  • positioning problem;
  • software or service outage;
  • incorrect system configuration;
  • payment or account issue;
  • unclear road markings;
  • driver misunderstanding of a charging location;
  • vehicle not properly fitted where required; and
  • temporary maintenance affecting OBU e-services or traffic notifications.

Digital road pricing depends on several electronic and informational layers working together.


How to Read ERP 2 Like a Systems Thinker

1. Find the location

Where is the charging point defined?

2. Find the time rule

When does a charge apply?

3. Find the vehicle interface

How does the OBU recognise and display the event?

4. Find the user cue

Which sign or road marking tells the driver the location is approaching?

5. Find the payment path

How is the charge settled?

6. Find the traffic-information layer

What other information does the OBU provide?

7. Find the alternative

What other route or transport mode is available?


The eduKate Singapore Graph: Road Pricing Is a Connection Between Economics and Traffic

Roads are physical.

Congestion is a flow problem.

ERP adds an economic signal.

GNSS adds location.

The OBU adds an in-vehicle interface.

Traffic systems add real-time information.

Public transport adds alternatives.

One congestion-management tool therefore sits inside a much larger mobility graph.


Frequently Asked Questions

When will ERP 2 launch?

LTA announced that ERP 2 will launch on 1 January 2027.

What technology does ERP 2 use?

It uses Global Navigation Satellite System technology together with an On-Board Unit installed in vehicles.

Will ERP 2 still use physical gantries?

The GNSS-based system eliminates the need for physical gantries to detect charging events.

How will drivers know where charging locations are?

LTA is introducing new road signs and road markings to provide visible cues.

How many eligible vehicles had OBUs by late September 2026?

LTA said more than 98% of eligible Singapore-registered vehicles had been fitted by 28 September 2026.

Does ERP 2 automatically mean distance-based charging?

No. The technology can support more flexible charging models, but the charging rules are determined by policy and official implementation decisions.

What else can the OBU show?

Current ERP 2 service information includes selected traffic notifications such as travel time, road alerts and parking availability.

Why is road pricing connected to public transport?

Travel behaviour depends on the alternatives available to road users.

Is this the main eduKateSG road-network article?

No. Read How Singapore Connects | Roads, Expressways and Junctions for the physical network.

Where can I check the latest official transition information?

LTA | ERP 2 transition announcement.


Helpful Reading and Singapore Graph Connections


How Singapore Connects: The Charging Point Becomes a Coordinate

Did you know that one of Singapore’s most visible transport structures is about to become less physically necessary?

The gantry used to tell both human and machine where charging happened.

ERP 2 separates those roles.

GNSS tells the machine.

Signs and markings tell the driver.

The road stays where it is.

The charging logic moves into software and the vehicle.

That is a very 21st-century kind of connection.