Two Questions and Answers Pertaining Metrology License for Parking

Two Questions and Answers Pertaining Metrology License for Parking

1. If a parking site only collects monthly season pass fees (no casual parking), does it still need a Metrology license?

  • Usually NO – but only if it is pure season parking.
  • YES – immediately if any time-based or per-use measurement exists.

Why season parking is generally exempt

Legal Metrology applies when measurement determines price.

true season pass has these characteristics:

  • Fixed fee (e.g. RM150/month)
  • Fixed validity period (e.g. 1–31 January)
  • Unlimited entries/exits
  • No time measurement affecting charges
  • No overstay penalty calculation
  • No hourly, daily, or block-based logic

In this case:

  • You are selling access rights, not measuring usage
  • It is contract-based, not transaction-measured
  • Comparable to a gym membership or office tenancy parking

Metrology is normally NOT required.

Where operators accidentally trigger Metrology

You WILL need a Metrology license if any of the following exists:

ScenarioMetrology Triggered?Why
Season pass + casual visitors✅ YESCasual parking is time-measured
Season pass with hourly overstay penalty✅ YESTime → money
Season pass limited to X hours/day✅ YESMeasurement affects price
Season pass + per-entry charges✅ YESTransactional measurement
Mixed-use site (even 1 casual bay)✅ YES (site-wide)System calculates fees

Regulators look at system capability, not your marketing label.

If the system can calculate time-based fees, the site is usually considered within scope.

Recommendation:

If you want to stay exempt:

  • Configure the system as season-only
  • Disable all casual logic at system level
  • Document this clearly for audit purposes

If not, don’t gamble—apply the license.

2. How does dynamic parking rate (peak-hour pricing) comply with Metrology requirements?

This is where many people think:

“Dynamic pricing = impossible to regulate”

That assumption is wrong.

The Key principle: Metrology does NOT prohibit dynamic pricing. It enforces transparency, determinism, and auditability.

What Metrology requires are: 

1. Rates are predefined, not arbitrary

  • Peak / off-peak rates must be configured in advance
  • Example:
    • 8:00–10:00 → RM4/hour
    • 10:00–18:00 → RM2/hour
  • No “AI decided to charge more today” logic

 Real-time demand-based surge pricing (like ride-hailing) is NOT acceptable

2. Time boundaries are clearly defined

  • Rate change rules must be:
    • Time-based
    • Calendar-based
    • Event-based (if approved)
  • System must calculate exact cut-over points

Example:

Parked at 9:30, exited at 10:30
30 min at peak rate + 30 min at normal rate

That calculation must be:

  • Deterministic
  • Repeatable
  • Provable

3. Rates are clearly displayed to users

Before or during parking, users must be able to see:

  • Peak vs off-peak definition
  • Applicable rates
  • How the fee is derived

This can be via:

  • Signage
  • On-screen display
  • QR payment screen
  • App interface

Hidden logic = non-compliant

4. Calculation logic is locked & auditable

Metrology officers care about:

  • Tariff tables
  • Time rules
  • Rounding logic
  • Minimum charge blocks

They do not care whether it runs on:

  • Windows
  • Linux
  • Cloud
  • On-prem
  • LPR or ticket

They care that:

Same input → same output, every time.

What will fail Metrology immediately

  • “Smart AI pricing” with no fixed rules
  • Admin changing rates on the fly without audit trail
  • Rates depending on occupancy % in real time
  • Dynamic logic that cannot be reproduced later
  • Different fee shown vs fee charged

Summary

Question 1 — Season Parking

  • Pure season only → Metrology usually NOT required
  • Any time-based charging → Metrology required
  • Mixed-use sites → Almost always required

Question 2 — Dynamic Rates

  • Predefined time-based peak rates → Allowed
  • Rule-based & transparent → Compliant
  • AI / surge / demand-based pricing → Non-compliant

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