New Regime – Utilities Work on Roads

We reported on the Infrastructure Bill (Bill) in August 2009 and April 2010.  The Bill has since been divided into four separate Acts that all became law on 6 August 2010.  The two Acts of most interest are the Infrastructure (Amendments Relating to Utilities Access) Act 2010 and the Utilities Access Act 2010.

It appears there has been little change since we last reported, but it is important that readers are aware of the outcome.

The key aim is to facilitate infrastructure development by removing unnecessary barriers and improving the consistency of regulatory arrangements.  By enacting these changes the Government is seeking to better organise dealings between those responsible for transport corridors (road and rail) and other utility operators wishing to get access to those corridors to install and maintain their equipment, lines and pipes.

The Infrastructure (Amendments Relating to Utilities Access) Act 2010 makes it clear that all utility operators (including gas and electricity operators) may only exercise their powers to access and work on a road in accordance with such reasonable conditions as may be prescribed by the local authority or other body or person having jurisdiction over the road. 

Although this clarifies the power of local authorities to have some control over how the utility operators carry out their work the new amendments have placed limits on this power. In particular, local council's may only impose a condition requiring the utility operator to increase amenity values where "the work to be done is in an area identified in a district plan as an area in relation to which, under the district plan, there are particular considerations, or rules or requirements, relating to amenity values".

As we suggested in the April 2010 article, local councils should conduct a review of their district plans and consider areas where particular considerations, or rules or requirements, relating to amenity values could apply to the installation or maintenance of utility services.  This could enable local authorities to have greater control over the quality of the work the utility operators carry out without the local authority having to carry the cost.

The Utilities Access Act 2010 establishes the national code of practice to regulate access to transport corridors which utility operators and corridor managers will be required to comply with when working on roads.  The code will set out the rules which, it is hoped, will better coordinate the work carried out by utilities on roads.

The Select Committee made it clear that there will be proper consultation with local authorities before any code is implemented.  It is important that local government play an active role in this consultation process to ensure that their concerns are properly taken into account as this code will be the standard nationwide, and they will not be able to impose their own rules once it is implemented. 

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Last updated: 2 September 2010

The contents of this publication are general in nature and are not intended to serve as a substitute for legal advice on a specific matter. In the absence of such advice no responsibility is accepted by Brookfields for reliance on any of the information provided in this publication.