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Introduced in 1998 by the LTA?, the Electronic Road Pricing (ERP) system replaced the Area Licensing Scheme (ALS). With 80 gantrys around Singapore, ERP located on all of the roads linking into the CBD¹. Every car is required to have an In-vehicle Unit (IU), which costs $150 to install. When cars pass through ERP gantries during peak hours, they will be charged a certain amount depending on the road and the time. If the vehicle owner does not have enough money in his CashCard, he would receive a fine of the ERP charges and an additional $10, which is reduced to $8 if payment is made electronically. Singapore is the first country to implement such a open road tolling system for the purpose of congestion pricing. The policy was introduced as there would be great congestion around the CBD district and major expressways during the peak hours, as most people travelling to and from work use the roads as they are the most efficient and fastest route compared to the other highways and roads. As a result, large scale traffic gridlocks along these roads were extremely common back in the day. As a result, this greatly impacted the businesses around the area negatively. Apart from this, it is to make car ownership in Singapore more of a luxury instead of a necessity. Due to the little space Singapore has, there is insufficient space for a substantial number of roads to support cars. The ERP was also introduced due to the incapabilities of the ALS system. The ALS system also had gantries, which were monitored by auxiliary police officers². Commuters were to display their special paper license which could be purchased easily. Those without the license would be fined $70 manually by the officers. This system is ineffective as it was highly prone to human error, and the fining process required the cars to stop, which is extremely inefficient, and this need for change resulted in the implementation of the first ever open road tolling, which now no longer requires the cars to stop The policy’s intended purpose is to help manage the heavy congestion which occurs at the CBD and major expressways such as the AYE¹ during the morning peak hours. It charges drivers entering the major expressways, which persuades them to use alternate roads to avoid traffic congestion. It also charges drivers a surplus entering the CBD around 8am to get drivers to enter the CBD earlier and discourage congestion. Lastly, the Electronic Road Pricing system aims to get more commuters to switch to taking public transport instead of driving, as the ERP charges are often more expensive than taking the train.

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