Transport technology company EROAD has welcomed the Government’s plan to transition all vehicles in New Zealand to an electronic road user charges (eRUC) system, describing it as a “smarter, fairer, and more sustainable approach” to funding transport infrastructure.
EROAD co-chief executive Mark Heine says the announcement is a strong endorsement of a system already widely used by commercial fleets.
“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. We applaud Minister Bishop for taking a step towards modernising how New Zealand funds its transport infrastructure,” Heine says.
New Zealand’s current RUC system already applies to approximately one million diesel and heavy vehicles. The Government’s proposal would bring an additional 3.5 million vehicles into the system.
Heine says EROAD is well positioned to support the transition, having pioneered the world’s first GPS-enabled nationwide eRUC system for commercial vehicles.
“The technology to do this is well established, for example EROAD’s GPS-based platform helps thousands of commercial fleet operators in New Zealand and abroad reduce compliance costs, improve safety, and gain real-time insights into road use,” he says.
The transition to electronic charging will charge all vehicles based on actual road use. That includes electric vehicles, which currently avoid fuel tax but still contribute to wear on roads. The shift is expected to make compliance more efficient by automating payments and removing manual processes such as pre-purchased distance licences and odometer checks.
Real-time data would also help both users and policymakers to better manage congestion, improve safety, and direct investment. Meanwhile, decoupling road funding from fossil fuel use would help support New Zealand’s low-emissions transport goals.
Bishop confirmed the Government will also allow private sector providers to offer integrated billing solutions. These would combine tolls, time-of-use pricing, and road charges into flexible billing systems such as monthly payments and post-pay models.
With legislation expected in 2026 and full implementation targeted for 2027, Heine says EROAD is ready to support the roll-out in partnership with government and industry stakeholders.
“With EROAD collecting over $900 million in eRUC last year alone from commercial fleets and heavy vehicles in New Zealand, on behalf of the Government, the technology is already well proven and can help support the Government’s transport funding ambitions.”
