However, the Government does exercise flexibility in ERP charging. ERP reviews are conducted quarterly, and changes are made to optimise traffic flow according to the latest road conditions. Aside from ERP, changing road conditions can also bring about improvements in the road network. These road enhancements however, can only bring about limited relief to congestion as wider roads will likely attract more motorists.
The Government's priority is still to build roads to serve new developments and facilitate the movement of buses for public transport commuters. Contrary to popular belief, ERP rates have varied minimally over the years.
CBD ERP charges have also remained the same since , although wages and the cost of living have increased since. All in all, the ERP system is an effective traffic speed booster. Data indicate that speeds have generally improved when ERP rates are increased, and vice versa. Without the ERP, traffic will not be as smooth as it is today. View all. It serves as an effective tool to manage traffic congestion by internalising the external costs of driving, which includes the impact on other road users.
In doing so, motorists are more aware of the true costs of driving. Road pricing was first implemented in the form of the Area Licensing System in , which levied a flat charge on all vehicles entering the Central Business District CBD. In , this was replaced by the ERP system, which leverages on technology to allow for a more effective and flexible method of congestion charging.
The Radio Frequency Identification RFID technology used also allows an automatic deduction of congestion charge on any vehicle passing under a road pricing gantry during its operating hours. As charges are levied on a per-pass basis, motorists are more aware of the true cost of using their vehicles. The ERP system provides a targeted solution for congestion pricing. It allows us to pinpoint specific congested spots and vary the congestion charge and operating hours according to prevailing traffic conditions.
Therefore, the charges can either increase or decrease according to the demand of usage of the priced-road or expressway, which is reviewed quarterly. By pricing congested stretches, the ERP system helps to moderate vehicle usage and optimises the road network by encouraging motorists to consider switching their time, route or mode of travel. Since its introduction, the ERP system has been effective in managing traffic congestion and keeping traffic speeds within the optimal range.
However, it has to continue working in tandem with vehicle ownership control measures, road capacity optimisation and increasing public transport use to maintain smooth-flowing traffic. Since July , LTA has applied the 85th percentile speed measurement method instead of average mean speeds to determine whether ERP rate changes are necessary. To create a buffer, LTA decided to use a more representative method of measuring actual traffic conditions for ERP rate reviews, with speeds determined using the 85th percentile method.
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