Current £2,500 daily charge to rise to up to £25,000 a day.
Plans have been published to increase penalties for firms whose road-works overrun, from the current £2,500 maximum daily charge to up to £25,000 a day.
The proposals are intended to provide utility companies with a strong incentive to finish works on time. Utility firms will not be permitted to pass the cost of these charges on to their customers.
The proposed increases in maximum charges would apply specifically to the busiest ‘traffic-sensitive’ streets, which is where the disruption caused by street works is most costly.
The announcement forms part of the Department for Transport's street works action plan published in December 2009, which aims to reduce the disruption caused by street works.
The Government also set out proposals for a tougher inspection regime giving local councils more powers to charge utility companies for inspecting road works in their streets.
The new inspection regime will mean that utility firms that consistently fail to keep their sites safe, or fail to replace the road surface properly, could be required to pay for additional inspections by local councils.
Transport Minister Sadiq Khan said: "There is no excuse for those companies who allow their works to drag on for longer than they should, causing inconvenience and frustration for the travelling public."
"The new charges and tougher inspection regime will provide a strong incentive for utilities to finish works on time or pay for the disruption they cause."
Department for Transport consultation