06/03/2002 Local Authorities to charge Utility companies for digging up roads
Two pilot schemes allowing local authorities to charge utility companies 'lane rental' when they dig up roads have started today in Middlesborough and Camden. Other local Authorities will be monitoring the scheme and may adopt it.
Gas, water, electricity and cable companies will face a daily lane rental charge of up to £650 each time they dig up the road to install or maintain their equipment. Councils will be allowed to keep the money raised through these charges and spend it for transport purposes.
John
Spellar, the Minister for Transport, said that
" the new charges were designed to encourage utilities to carry out works as quickly as possible to minimise the nuisance that they cause to drivers, pedestrians and residents".
: "Anyone who drives knows the frustration of being caught in traffic jams caused by companies digging up the roads. These works also often cause pedestrians inconvenience as well, to say nothing of those living near work sites. When I launched a consultation last August on the possible use of these powers, I explained that whilst no decision has been taken on the national use of lane rental, we wished to use pilot schemes to test the effect it might have in encouraging utility companies to reduce the overall disruption caused by their works. Having weighed up the responses to the consultation, I am clear that it makes sense to test these powers now. That is why we have decided to go ahead with the pilot schemes in Middlesborough and Camden which are starting today."
The Minister acknowledged that much of the work carried out by utility companies was in response to customer demand and included vital work to repair gas and water mains. He added:
"Our aim is not to stop utilities carrying out these works, many of which - such as repairs to leaking gas and water mains - need to be carried out urgently, but to encourage them to carry them out more quickly than at present. "We will be monitoring the progress of these pilot schemes very closely to see whether lane rental is successful in reducing disruption and to measure the costs it imposes on utility companies. We are already monitoring additional powers which we introduced in April 2001 to allow highway authorities to impose a daily charge on utility companies every time work overruns an agreed deadline; powers which over 110 local authorities have already taken up. "If it becomes clear that overrun charging does not reduce disruption sufficiently and that lane rental is an effective and practical answer then we are prepared to make the lane rental powers available to local authorities across England."
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John Spellar, the Minister for Transport