'Fine companies for road chaos'

Senior MPs today called for water, power and phone companies to be hit with financial penalties for failing to coordinate roadworks.

The all-party Public Accounts Committee voiced the frustration of drivers who find the same roads being dug up over and over again by different utilities.

In a report, the committee claims the companies could save money by planning joint works programmes. It urges regulators to calculate the money being wasted and then force companies to slash customer bills by the same amount, providing the firms with an incentive to cooperate.

The Government already fines companies whose roadworks overrun their completion dates. Ministers have also ordered a trial "lane rental" scheme. But today's report goes further by suggesting utility companies should be hit where it hurts - in the charges they are allowed to levy on customers.

It calls on regulators Ofgem, Oftel and Ofwat to act, saying: "Roadworks can impose costs in terms of delays and noise and can be particularly frustrating where it appears companies have not coordinated their roadworks to minimise disruption to the public. The regulators should consider whether they can improve the incentive for regulated companies to minimise the costs to customers and the public."

The recommendation comes in a report on the monopoly operators of Britain's pipes and wires and the regulators that oversee them. The MPs call for a cut in the £69 million-a-year running cost of the three regulators.