Concern for Broadband Upgrades as UK Councils Eye New Charges for Roadworks

Deploying new broadband networks around parts of England could soon become more costly unless both operators and councils take extra care with a new power, which could allow them to charge utility companies by the hour for civil engineering work that causes significant disruption (traffic congestion etc.).

The Government is currently seeking views on the removal of a sunset clause from their existing Lane Rental Scheme, which is currently being trialled in London and Kent but would otherwise be due to close in March 2019. On top of that they’re also proposing that other local authorities be allowed to introduce lane rental schemes.

A related impact assessment for the scheme states that there are around 2.5 million road works carried out in England each year causing significant disruption and delay to road users, with delays caused by works estimated to cost more than £4 billion a year. In addition, delays increase the likelihood of an accident and lead to greater carbon emissions and pollution.

As such lane rental involves charging the promoters who carry out road works during lane rental periods for the time their works occupy the road. Charges are focused on the busiest streets at the busiest times (e.g. encouraging work to take place at night etc.).

Government Statement on Lane Rental

The current designs of the lane rental schemes for Kent and TfL allows them to impose a charge of up to £2,500 for each day their roads are occupied by the works. The charge was set at a level that reflected the costs of congestion caused by the works, and that would encourage works promoters to: reduce the length of time taken to carry out the works; improve planning, coordination and working methods; carry out more works outside of peak times; complete works to the required standard first time.

The policy objectives and intended effects of those policies set out in this Impact Assessment are to reduce the negative impact on road users and wider society from road works by encouraging works promoters to reduce the time spent carrying out works on the busiest roads at the busiest times.

The proposed options for the future of lane rental are a) do nothing (end it entirely), b) retain it but only in London and Kent, c) continue the scheme and roll it out to other local authority areas or d) use permit schemes to deliver the key objectives of lane rental (i.e. adding a new ‘super permit’ for works on the most congested local roads).

The Government currently appears minded to retain and extend the scheme to other local authorities, not least because in some areas it has helped to reduce traffic congestion by more than 50%. However there’s a fear that this could also slow the roll-out of new broadband infrastructure and make it more expensive, which is exactly the sort of change that infrastructure providers will be concerned about.

A recent report from Analysys Mason, which was published by the Broadband Stakeholders Group (BSG), highlighted the importance of making it easier and cheaper to deploy such networks (i.e. encouraging wider deployments of new “full fibre” FTTP/H networks). The same report also proposed numerous changes and warned that variations between how different local authorities handle noticing and permit schemes needed to be resolved (here).

The Government’s consultation, which will remain open for responses until 16th September 2017, does at least say that it would only extend the measure to local authorities if they agreed to operate a permit scheme “in line with ‘best in class’, for example, where permit fees are proportionate and the offering of discounts for joint works, full compliance with permitting regulations and guidance and schemes fully supported the delivery of national infrastructure projects like HS2 and broadband roll-out.” Sadly they don’t spell out what is meant by “fully support“.

The importance of all this should not be understated. Gigaclear recently had to pull out of their commercial plans to roll-out 1Gbps FTTH/P broadband services in parts of Worcestershire because of a dispute with the local authority over road closures (here), which ultimately appears to have made it too expensive for the ISP to proceed.