Water firm counts cost of work delay (From Oxford Mail)

Water firm counts cost of work delay

6:00pm Wednesday 1st February 2012 in Banbury By Oliver Evans

Thames Water has seen a near tenfold increase in its fines for not completing roadworks on time.

The firm has been fined £43,450 by Oxfordshire County Council for 18 projects that overran since April – compared to £4,800 the previous year.

Critics say existing fines – which total £49,800 so far this financial year for three utility firms – are not enough of a deterrent.

The Thames Water fines included £4,750 for overrunning by 19 days in May in The Phelps, Kidlington, and £3,750 for 15 days in April in Brandon Close, also in Kidlington.

The firm, which recorded £117m after tax profits for April to September, was also fined £5,750 for a 23-day overrun in Mill Street, Islip, in April. Other fines were for work in Minster Lovell and Banbury.

Thames spokesman Becky Johnson said: “We are sorry to anyone who was inconvenienced as a result of these overruns. We are working with our contractors to improve.”

The council last week demanded Thames Water stop using traffic lights for leak repairs in peak times in Abingdon Road, Oxford.

It has until Friday to complete the job and faces a fine unless it can justify an unforseen overrun.

David Williams, a Green Oxford City Council member for the area, said: “The fines are too small for them to get their act together.

“They are obviously not taking any notice.”

Councils can fine firms up to £2,500 a day for major and £500 a day for minor works depending on the number of streets affected.

The Government proposed raising this to a maximum £25,000 in 2010 but no final decisions have been made.

Transport Minister Norman Baker said he would make an announcement on new charges “shortly”.

RAC spokesman John Franklin said: “If they are still overrunning then the fines aren’t working to the level they should do.”

But he warned fines that are too high could be passed on to consumers in higher prices.

Rodney Rose, the county council cabinet member for transport, said: “Utilities do need to understand that if they say they’re going to have their job done by a certain time then they need to do precisely that.”

In the 2010/11 financial year, BT was the worst county offender, fined £10,100 for 15 overruns and £2,600 for six breaches this financial year.

Energy firm Scottish and Southern was fined £3,750 for one breach this year and £2,500 for four last year.

Wales & West Utilities was fined £100 for one breach and Southern Gas £6,750 for two last year.