Eroad hails charging shift
Transport technology services company Eroad has welcomed the government’s plan to transition all New Zealand vehicles to electronic road user charging (eRUC) in the near future.
It says the move represents a “smarter, fairer, and more sustainable approach to road funding” and eRUC is a system already used by commercial fleets.
Mark Heine, pictured, co-chief executive officer of Eroad, adds: “As New Zealand transitions away from fuel excise taxes, eRUC offers a future-ready and proven solution that reflects how we actually use our roads.
“It’s a system that’s not only more equitable, but also more efficient and better aligned with our climate and infrastructure goals.”
Chris Bishop, Minister of Transport, announced the reforms on August 6. He says the “once-in-a-generation change” will ensure all road users, regardless of fuel type, contribute fairly to the cost of maintaining and improving the transport network.
The government’s plans will put an extra 3.5 million vehicles into the eRUC system, which is in addition to about 1 million vehicles already subject to such charges.
Eroad has played a role in bringing eRUC to commercial fleets in New Zealand and believes the country is well-positioned to lead the way in rolling out a charging solution for all vehicle types.
It says the benefits of an electronic charging programme include:
• Fairness: Charges are based on actual road use, ensuring all vehicle types, including EVs, contribute proportionately.
• Efficiency: Digital systems automate compliance, reduce administrative burden and eliminate manual processes.
• Transparency: Real-time data empowers users and policymakers with actionable insights to improve safety, reduce congestion and guide investment.
• Sustainability: Decoupling road funding from fossil fuel use supports New Zealand’s low-emissions transport transition.
Bishop also announced the government will enable private sector providers to offer integrated billing solutions, including tolls and time-of-use pricing, with flexible payment options such as monthly billing and post-pay models.
Heine notes the technology to do this is well established and Eroad hopes to collaborate with policymakers, industry and communities to deliver a system that is fair, future-proof and fit for purpose.
