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Tuesday, 09 June 2015 13:25

UK regulators consult on infrastructure crossover works by utilities

The UK Regulators Network has launched a new consultation seeking views on its proposals to help make the process of crossing or working near the pipes, wires and other equipment of utility network operators easier, quicker and cheaper.

Over £300 billion will be spent on infrastructure projects by 2020/21, according to the data in the National Infrastructure Ppeline – potentially, over £13 billion of this investment is spent on asset protection and diversionary works. The UKRN says that uncertainty or delay with this process could harm new infrastructure projects.

The consultation sets out a package of remedies to help address issues affecting infrastructure and other works when installation must cross or work near the in-situ assets of regulated network operators, including water, gas, electricity and rail networks.

Introducing the consultation, UKRN said it is concerned with two specific issues:

  • Whether the sectors its members regulate, which invest significant sums in new infrastructure, are facing higher costs when they interact with other regulated sectors; and
  • Whether regulated utility networks overall are raising the cost for other types of infrastructure investment, for example renewable energy, highways, environmental improvements amongst others

According to the regulators, the experience of those working with utility networks highlights a number of concerns, including:

  • getting the right point of contact;
  • the process and consistency for approval of designs or provision of works;
  • transparency of charges or fees for works; accuracy of asset information; and
  • concerns with some of the obligations or terms that must be met.

Th UKRN proposals are aimed at strengthening and spreading good practice, and include:

  • A statement of best practice principles, to be adopted by network operators and ideally other infrastructure operators to guide or influence their practices and behaviours towards clients crossing their assets;
  • An annual report by network operators, affecting networks above a minimum scale and proportionate to the effect on clients, with the first report expected within 12 months of UKRN’s  final proposals, outlining how operators have adopted the principles and improved the experience of clients; and
  • A follow-up review of outcomes by UKRN for the 2016-17 business year, to judge the success of these measures and any others that industry may have adopted.

The regulators are also raising a number of other issues, including: how to address concerns with the quality of information about network assets, the indemnity required of crossing parties and whether further steps can be taken by networks or others to raise the profile and importance of interactions.

The proposals are targeted at regulated network operators i.e. the businesses that operate the monopoly gas, electricity and water distribution networks, together with other important sectors including railways and telecommunication companies. The UKRN said:

“As stewards of our national infrastructure, we consider that operators should facilitate other infrastructure projects.  Utility networks also stand to benefit from these proposals, as many networks must also cross existing assets as they manage and develop their own networks.”

UKRN said the consultation is likely to be of particular interest to regulated networks, their trade associations, professional bodies concerned with infrastructure and civil engineering, construction contractors, those involved with off-shore infrastructure and landowners that work regularly near utility assets.

Deadline for responses to the consultation is 16th July and the UKRN is aiming to publish final proposals in the summer.

Click here to access the consultation online.

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