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
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
"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 firstname.lastname@example.org
- A map showing key routes affected is available for download here
- A copy of the Transport For London Lane Rental Scheme is
- A copy of the relevant Department for Transport press release
is available here
Back to News