THE Land Transport Authority (LTA) announced on Friday (Aug 30) that from October, it will waive the administrative charge for missed Electronic Road Pricing (ERP) payments that are settled within a grace period of five days.
Currently, motorists who fail to pay an ERP charge at the point of passing a gantry receive a letter a few days later, asking that they pay a S$10 administrative charge on top of the missed payment. This charge is levied to cover the costs incurred by LTA to recover outstanding payments.
From Oct 1, LTA will first send SMS notifications for missed payments. Motorists will be given five days from the date the SMS is sent to pay the missed charge. They will no longer be billed for the administrative fee if payment is made during the grace period.
If the payment is not made in that time, LTA will issue the letter to ask for the missed payment and the S$10 administrative fee. If the motorist fails to do pay these, a S$70 fine will be imposed.
This move comes as the government is reviewing existing rules and processes to ease regulatory burden and lower the costs for businesses and individuals.
From mid-2025, notifications and payments will be facilitated by the On-Board Unit under LTA’s move to the new ERP 2.0 system, which aims to reduce backend processing costs.
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The unit will detect and process missed ERP payments directly. LTA is developing a feature on the On-Board Unit so that it notifies motorists of missed ERP payments and facilitates these accordingly.
The ERP 2.0 system requires all Singapore-registered vehicles to switch to a new On-Board Unit. LTA said this transition is “seamless”, with no difference in how motorists are currently charged for ERP and parking.
“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 S$10 admin fee,” said Transport Minister Chee Hong Tat on Friday.
He said this change would be a “win-win outcome” for the government and motorists, with LTA being able to use its resources to focus on other more pressing matters.
Currently, about 500,000 letters are sent out each year to notify motorists of their missed ERP charges.
To ensure that motorists receive the SMS from LTA and can benefit from the five-day grace period, motorists are reminded to keep their Singapore-registered mobile number updated on the Singpass website.
