Toll operators warned of penalties, suspension over RFID woes

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NLEX Karuhatan Toll Plaza in Valenzuela City. Photo from NLEX Corp.
  • The Toll Regulatory Board will penalize toll operators and even suspend their toll collection if they continue to violate rules on mandatory cashless transaction on toll expressways
  • TRB said the suspension by the Valenzuela City government of NLEX Corp.’s business permit “is a matter between the City of Valenzuela and the NLEX operator”
  • TRB has identified actions operators need to take “to achieve least inconvenience” in implementing cashless transaction

The Toll Regulatory Board (TRB) warned toll operators they face penalties and even suspension if they continue to violate the implementing rules and regulations (IRR) of the mandatory cashless transactions on the expressways.

TRB in a statement said its continuing operations and systems audit of the enforcement of mandatory cashless transaction at toll plazas has identified glitches which have been brought to the attention of toll operators.

Implementation of the mandatory cashless payment started on December 1.

The regulatory board said these glitches, admitted by toll operator NLEX Corp. to be happening, “are not new to TRB management and were subject to notices to correct.”

TRB said it is poised to impose penalties and even suspend toll collection by toll operators that continue to violate the IRR on mandatory cashless transaction on toll expressways.

NLEX Corp. earlier acknowledged that the start of mandatory cashless toll collection on December 1 has been marked by birth pains and technical problems.

“These glitches that are occurring at the toll booths are simply a result of some adjustments that should be expected because the RFID [radio frequency identification] implementation took effect only eight days ago,” NLEX Corp. president and general manager J. Luigi Bautista had said.

He earlier told motorists the company was “working to eliminate the inconvenience caused to our customers by the new compulsory tollway cashless transaction system using RFID that is required by the Department Order of the Department of Transportation (DOTr).”

The use of RFID stickers for cashless transaction starting December 1 on all Luzon expressways was ordered by DOTr and TRB as part of their toll collection interoperability project launched in 2017.

Under DOTr Department Order 2020-012, TRB should ensure that toll operators install electronic tags or other cashless systems for all motorists and motor vehicles using the expressways, and that they transact only through a cashless mode of payment.

The program, however, started to cause heavy traffic at toll plazas even prior to December 1 with motorists scrambling to get their RFID stickers before the deadline. Toll operator San Miguel Corp. earlier requested to have the full implementation of the project moved to February 2021 to give motorists more time to secure their RFID stickers.

The heavy traffic and glitches prompted the Valenzuela City government to suspend NLEX Corp.’s business permit on December 7 until the toll operator submits an action plan addressing issues with the mandatory cashless transaction.

READ: Valenzuela suspends NLEX operator’s permit over ‘abysmal’ RFID system

NLEX earlier said it would implement several measures to resolve the heavy traffic at its North Luzon Expressway (NLEX) interchanges, including “amicable and cooperative initiatives between the tollway company and the City of Valenzuela.”

READ: Toll operator to implement NLEX traffic measures

Although NLEX Corp.’s business permit is suspended, motorists can still pass through the NLEX interchanges in Valenzuela City without the need to pay the toll fee.

TRB for its part said the suspension by the Valenzuela City government of NLEX Corp.’s business permit “is a matter between the City of Valenzuela and the NLEX operator.”

“We have been assured that this is being given appropriate attention and [is] hoped to be resolved very soon,” TRB said.

The regulatory board has identified actions operators need to take “to achieve least inconvenience” in the implementation of cashless transaction.

These include immediate replacement of worn-out/defective sensors (readers), related RFID equipment and RFID tags. Another is the relocation/repositioning of RFID installation sites and reloading lanes that hamper traffic flow.

TRB also ordered toll operators to maintain, improve, and upgrade systems software, enhance traffic management, and improve customer service assistance.

DOTr earlier said no apprehensions would be made until January 11, and that the tollways may practice leniency toward motorists with no RFID stickers.