Hole Story
Utility companies exaggerate estimates to avoid fines
Utility companies may be exaggerating the duration of road works by up to 50% to avoid fines and half of their resurfacing work is not up to quality, according to the RAC Foundation.
These claims are made in a new study for the Department for Transport to assess the extent of street works and in a consultation from the Scottish Executive.
The first study looked at Section 74 of the New Roads and Street Works Act, which provides a highway authority with the powers to charge a utility for occupying the highway beyond a set period and found :
- There are twice as many excavations per month from the water sector compared to gas, telecoms or electricity sectors.
- These other sectors display similar levels and patterns of activity.
- The utilities have increased the estimates of time that their work will take to avoid charges, but the authorities are not challenging the estimates.
- The report estimates that there are at least 1.1 million street works per year
- Utilities appear to be over-estimating the duration of major and standard works by at least 35% and up to 50% more than the actual durations of these works
- The overestimate exceeds the actual duration by up to 50%.
- Co-ordination is weak as most authorities are unable to monitor, challenge and co-ordinate because of limited resources and bad management.
As a result of this study the RAC Foundation is calling for new legislation to cut the two billion pounds worth of delays caused by utility companies digging up the UK’s roads. A new bill, designed to tackle the street works nightmare, may be included in the Queen’s Speech later this month.
The new bill is also expected to increase the level of fines that utility companies will have to pay if they abuse their powers. At the moment, many utility companies are believed to claim that their work is an emergency to avoid having it monitored by the local authority.
Current laws to control the disruption caused by holes in the road were introduced twelve years ago when only a handful of utilities existed but the increasing popularity of high speed internet and the de-regulation of gas and electricity services has meant that over a hundred and fifty companies are now allowed to dig up the highway.
Problem solved, it would even be self-financing, the local governments could employ somebody to monitor all road works in its area and levy the charges accordingly.
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