Utility companies
who take too long to complete their road works will face higher
charges, Transport Minister Norman Baker announced today.
All utility companies who dig up the road must agree a time frame
for their works with the local council. If a firm overstays this
period and has not negotiated the additional time with the local
council then they face an 'overrun charge' for
each additional day they spend on the road.
Currently, the maximum daily overrun charge is £2,500, depending
on the type of works and the sort of street being occupied. From 1
st October 2012 this will rise on the busiest roads to £5,000 a
day for the first three extra days, rising to £10,000 a day from
the fourth extra day onward. Councils must spend overrun charge
income on implementing transport policies.
Norman Baker said:
"We know that utility firms need to dig up the road to
maintain the infrastructure we all rely upon but sometimes this
work takes far too long to complete, causing disruption and
frustration for everyone using the road.
"Increasing these charges means that utilities will pay
penalties which reflect the cost of the disruption suffered when
works go on longer than they should.
"The increases will also provide an incentive for
utilities to finish works on time and prevent people sitting in
unnecessary traffic jams in the first place."
The Department is also changing the way overrun charges are
structured to reflect the fact that all overruns cause the same
level of disruption regardless of how long the work was originally
planned for.
The Government's response to the consultation on overrun
charges can be found here: www.dft.gov.uk/consultations/dft-2010-13.
Regulations will be laid in Parliament shortly and are due to come
in to force in October 2012.
The Government has also recently put forward proposals for
councils to use lane rental schemes which would see utilities pay
a daily charge to do works on the busiest roads as well as
measures to reduce bureaucracy for councils wanting to implement
road works permit schemes. Both consultations can be found on the
Department's website.
Notes to Editors
1. The legislation which allows overrun charges to be levied by
local authorities is the New Roads and Street Works Act 1991,
s.74. New regulations will be required to effect these changes and
these will be laid shortly. 2. Chapter 10 of the Co-ordination
Code of Practice will be updated to reflect the change in charges.
3. Local authorities can use their discretion and do not have to
charge the maximum charge in all circumstances. Press Enquiries:
020 7944 3066Out of Hours: 020 7944 4292Public Enquiries: 0300 330
3000Department for Transport Website:
http://www.dft.gov.ukwww.twitter.com/transportgovuk |
www.youtube.com/transportgovuk | www.flickr.com/transportgovuk
Contacts:
DfT Press Office - Roads
Phone: DfT Press Office 020 7944 3066
nds.dft@coi.gsi.gov.uk