Utility firms may have to pre-book and pay to carry out roadworks across the West Midlands – and could be fined if they overrun.

The West Midlands-wide plans would ensure better regulation of projects to dig up roads in a bid to reduce disruption. Gas, water and power companies would be charged to shut roads across the region and pre-book their time on the highways to avoid clashes. If the Permit Operator Scheme was adopted, it could raise up to £2.5 million a year in revenue for councils.

At present utility companies simply have to give councils notice of where they will be carrying out work and how long it will last.

But under the new scheme companies would only be allowed on the roads after buying a permit.

The proposals fall under the Traffic Management Act (TMA) 2004, which was brought into effect in April 2008.

Councils are only now being actively encouraged to become permit operators by the Government.

Giving the local authorities more control over roadworks, bosses will have to approve applications, can set conditions on the work and have the power to issue fines if work overruns.

The project was discussed last night at a meeting of Walsall’s full council.

Cabinet member for highways councillor Tom Ansell said: “We are working with neighbouring authorities to develop a scheme for the West Midlands as a whole. Officers are investigating the benefits.”

He added: “While I agree there is a potential for income it is unquantifiable at the moment.

“Once we join we will actively pursue any further income into the authority.”

Each local authority can decide whether or not to become a PSO.

They can also decide the scope of their permit schemes, and the level of permit fees.