New highway “lane rental” scheme could add up to £2,500 a day to utility installation costs.

 A new highway "lane rental" scheme being pioneered in London from Monday 11th June could add up to £2,500 a day to utility installation costs when work has to take place at peak travel times on the busiest roads.

Transport for London are the first local authority in Britain to introduce new lane rental charges under Street Works regulations designed to reduce traffic congestion when roads need to be dug up. 

The new fee scheme covers over 200 miles, 57%, of "Red Route" London roads including major arterial routes into and out of central London. Charges will be based on a sliding scale depending on how busy the relevant road section is, the duration and what time of day works are carried out, how much of the carriageway is affected and if they affect key traffic "pinch points".

Commenting on the new regulations, Fulcrum's Associate Director of Operations, Ian Foster, said it was inevitable some London installation contracts would cost more.

"These new regulations will affect the cost of works carried out by all utility companies operating at key points on designated roads and streets in the Transport for London area. Clearly the intention is to persuade utility companies and others undertaking carriageway works to try to complete activity outside peak traffic times.

"As a responsible utilities infrastructure company, Fulcrum will do everything in its power to minimise additional costs to clients caused by the new regulations. Where possible, we will seek to work with clients to avoid routes and times attracting the lane rental levy - but in some cases, due to the nature, precise location and duration of the required works, additional customer costs may be unavoidable.

"As the exact amount of potential additional cost will vary significantly for individual contracts, depending on their scale, location and duration, we urge customers to speak to Fulcrum early in the planning and design stage.

"We can then confirm whether their proposal may be affected by lane rental, explain the extent of the implications and support customers by jointly exploring the works options and any available alternative routes which might reduce or eliminate the new Transport for London fees."

The Department of Transport is currently looking to gather evidence of the effectiveness of lane rental in reducing traffic disruption and is seeking to trial the scheme in at least two other, as yet unnamed, local authority areas.

The selected authorities will need to have exhausted other options, including using a permit scheme.

The Department of Transport says lane rental schemes will be evaluated annually and revenue raised used to reduce future road works disruption through new infrastructure, research or measures to improve works management.

Additional information and guidance:

• Customers seeking advice on potential lane charges affecting their development can read our specific FAQs, contact us on 0845 641 3010  or email us at enquiries@fulcrum.co.uk
• A map showing key routes affected is available for download here
• A copy of the Transport For London Lane Rental Scheme is available here
• A copy of the relevant Department for Transport press release is available here