Media release
Safety must always be the top priority when working on the electricity network, but the escalating cost of temporary traffic management (TTM) faced by electricity networks is extraordinary.
A report commissioned by Electricity Networks Aotearoa has analysed the cost of working in the road corridor for lines companies. It shows that the cost of temporary traffic management per day has increased by around 208% from 2019 to 2024.
The report forecasts that the average cost per day for temporary traffic management is expected to rise from $785 in 2019, to $2,947 in 2026 — an increase of around 275% over the period.
Electricity Networks Aotearoa Chief Executive, Tracey Kai, says costs for temporary traffic management have been rising at an alarming rate.
“If nothing changes, costs will keep soaring — and every cost that lines companies face, flows through to consumer power bills.
“Most of the time, costs are essential, like maintaining all the poles and wires and future-proofing to ensure our electricity infrastructure is resilient to things like floods and storms.
“However, some of the costs imposed on lines companies are unnecessarily high due to outdated rules. These added expenses make running lines companies more expensive, and ultimately, drive up power prices for consumers.” says Kai.
ENA welcomes the recent changes the government is making to temporary traffic management which require contractors to adopt a ‘risk-based approach.'
This report gives us a national benchmark for the cost that lines companies pay for temporary traffic management when working in the road corridor. ENA plans to repeat the report in 18-24 months to assess how the new approach to temporary traffic management is tracking.
If costs continue to rise during this period, ENA will seek to work with the Government to maintain safety standards and push for further changes to the system.
“Ways to reduce the cost of power need to be a key focus for the entire energy sector,” says Kai.
“We can’t pretend that inflation and the cost of doing business have not gone up rapidly. Everyone’s feeling the pinch and power price increases from April this year make fixing some of our regulations even more pressing. We need to find cost savings to keep the price of power down for everyone,” says Kai.
The report was undertaken by Beca and it assessed the project costs of 17 lines companies over the last five years. The report is available on the ENA website here.
ENDS
Below is a table that sets out the current approach to temporary traffic management vs the new approach that has been introduced.
Temporary Traffic Management (TTM) in New Zealand: Current vs New Approach
| Aspect | Old Approach (Code of Practice for Temporary Traffic Management) |
New Approach (The New Zealand Guide to Temporary Traffic Management) |
|---|---|---|
| Focus | Compliance-driven, focusing on prescriptive rules. | Risk-based, prioritising safety outcomes. |
| Decision-making | Rules-based decision-making with limited flexibility. | Risk-based decision-making with greater flexibility. |
| Training and accreditation | Workers require multiple training levels with lengthy courses. | Streamlined training focusing on practical application and risk assessment. |
| Site management | Uniform setups mandated for different road types. | Tailored setups based on specific site risks. |
| Cost efficiency | Higher costs due to rigid compliance requirements. | Potential cost savings through proportional risk-based measures. |
| Innovation and technology | Limited adoption of modern technology and innovation. | Encourages use of smart technologies (e.g., automated TTM, remote monitoring). |
| Roles and responsibilities | Clear but rigidly defined roles with little adaptability. | Greater empowerment for decision-makers on-site. |
| Public impact | Sometimes results in excessive road closures and disruption. | Aims to minimise public disruption while ensuring safety. |
| Implementation timeline | Longstanding approach with periodic updates. | Phased rollout starting 2024, with full implementation over time. |
Summary: The new TTM approach shifts from a prescriptive, rules-based system to a risk-based framework. This allows for more flexibility, greater emphasis on real-world safety outcomes, and the use of modern technology to enhance efficiency and reduce disruption.