Govt increases overrun fines for utility works

Date: 14/3/2012

Utility companies will now face tougher penalties if they take too long to complete scheduled works.

Firms have to agree a timeframe for their project if they need to dig up roads and currently, if they go past their end date, they receive a maximum daily charge of £2,500.

However, Transport Minister Norman Baker has announced this will rise to £5,000 a day for the first three days on the UK's busiest roads.

From the fourth day onward, the figure will increase to £10,000, which local councils must then spend on introducing new transport policies.

"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," said Mr Baker.

The changes will come into effect on October 1st 2012.

At the end of last year, the Department for Transport approved a new road works permit scheme in the north-west, which means St Helens Borough Council has greater powers to issue fines when road works overrun.

Posted by Mary Treen