ADD2738 Fees associated with utilities receiving a streetworks collaboration incentive

1.1.    The Infrastructure Coordination Service (ICS) has become an established programme, relied upon within London’s infrastructure sector. It is currently funded by £10m from the London Lane Rental Scheme surplus income, under MD3080. The ICS also receives income from various external sources. 

1.2.    The ICS, in partnership with London’s gas and electricity companies, worked with the Office of Gas and Electricity Markets (Ofgem) to support the introduction of a financial incentive, encouraging utilities to collaborate on streetworks with other asset owners across London. This promotes a “dig once” approach, and reduces repeated works and disruption to Londoners. 
1.3.    The Streetworks Collaboration Incentive was introduced into utilities’ business plans in 2021. To help cover the ICS’s costs around delivering these collaborative streetworks, and providing oversight associated with the incentive, the ICS secured fees from Cadent, SGN and UK Power Networks (UKPN). 
1.4.    These fees began in August 2021, with acceptance and expenditure approved under MD2880 and DD2659. Current arrangements end on 31 December 2024. Cadent, SGN and UKPN have each agreed to pay another £24,033 to cover the rest of the financial year (January-March 2025). Arrangements for the next financial year will be arranged in due course.
1.5.    Convening collaborative streetworks is a key workstream within the Upgrading London’s Infrastructure mandate and delivery plan. Reducing disruption on London’s roads is a Mayoral priority.
 

2.1.    The fees allow the ICS to facilitate and increase the opportunities for streetworks collaborations across London.
2.2.    Activities include: project management for streetworks schemes; engaging and convening stakeholders across the industry; running workshops to identify future collaborative streetworks schemes, and assess their viability; supporting joint communications; and piloting innovative approaches to streetworks.
2.3.    The ICS also maintains its Infrastructure Mapping Application, while developing other data platforms. These allow utilities to rapidly identify future opportunities for collaboration.
2.4.    At the end of each collaborative streetworks scheme, the ICS runs a thorough benefits evaluation using a specially designed tool. This captures (among other things) how many days of disruption to Londoners have been saved. 
2.5.    Collaborative streetworks result in:
•    reduced road network congestion, and fewer days of disruption
•    improved wellbeing of local residents
•    fewer business losses
•    lower emissions and air pollution
•    increased resilience for London’s infrastructure
•    cost savings to works promoters.
2.6.    The ICS’s efforts to convene collaborative streetworks have resulted in over 1,300 days of disruption avoided by Londoners, since the programme began in 2019.
2.7.    The ICS also works with utilities to help them scale up these approaches across their businesses.
 

3.1.    In line with the Mayor’s ambitions, the ICS aims to improve all Londoners’ access to essential services, housing and the city. Reducing disruption on the road network creates benefits such as reduced noise and air pollution – issues particularly felt in neighbourhoods with the most vulnerable residents. Increasingly, we are seeing that these collaborations have a positive impact for various beneficiaries, including residents and businesses. 
3.2.    Infrastructure and streetworks often make roads and the public realm less accessible. This has a negative impact on several groups with protected characteristics. The ICS aims to minimise impacts on these groups; and ensure their needs are considered, wherever possible, early in the project planning. Making streetworks quicker by working collaboratively will also help improve accessibility across London. The ICS looks to improve road conditions, with Healthy Streets interventions that raise the quality of London’s public realm to ensure it caters to the needs of all Londoners – but particularly those with protected characteristics, who may otherwise find navigating roads a challenge.
 

Risk assessment
4.1.    The table below covers risks related to collaborative streetworks delivery, and the receipt of income:

Links to Mayoral strategies and priorities
4.2.    This work links to the following Mayoral strategies and priorities:

4.3.    No one involved in the drafting or clearance of this document has any conflicts of interest to declare.

5.1.    Approval is sought to receive and spend up to £72,099 of additional external income in the form of fees associated with utilities receiving the Streetworks Collaboration Incentive. 
5.2.    The income is set out below:

5.3.    The fees will be spent by the ICS to facilitate streetworks collaboration schemes. It is anticipated that the expenditure will be incurred in the 2024-25 financial year. However, the agreement allows for any unspent money to be carried over into the next financial year, subject to agreement by the utilities companies.

6.1.    The foregoing sections of this report indicate that the decisions requested of the Assistant Director of Connectivity, Air Quality, Transport and Infrastructure concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further, or that are facilitative of, or conducive or incidental to, the promotion of economic development and wealth creation, social development, and the improvement of the environment in Greater London. In formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to: 
•    pay due regard to the principle that there should be equality of opportunity for all people 
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the UK 
•    consult with appropriate bodies. 
6.2.    In taking this decision, the Assistant Director of Connectivity, Air Quality, Transport and Infrastructure should have due regard to the public sector equality duty under section 149 of the Equality Act 2010 – namely, the need to eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act; and to advance equality of opportunity, and foster good relations, between persons who share a relevant protected characteristic and persons who do not. This requirement is addressed at section 3, above.
6.3.    The utility companies (Cadent, SGN and UKPN) will sign a legal letter to extend the existing agreement. They will do so ahead of paying the subscription fee (£24,033 each) to cover the rest of this financial year (January 2025 to March 2025).
 

7.1.    The following table sets out the timeline for receiving and spending the income: