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Periodic review 2013: Consultation on incentives

Reference: ORR/020/2011
Date published: 14 December 2011
Start date: 14 December 2011
Closing date: 8 February 2012

On 14 December 2011, we published a consultation document on detailed issues and proposals relating to incentives as part of our work on PR13. This follows our first consultation document on PR13 which we published in May.

The Rail Value for Money study highlighted a lack of alignment in the incentives between the key players in the rail industry. The main purpose of this consultation is to set out for comment our more detailed plans for improving the alignment of incentives and encouraging better outcomes for customers, funders and society.

The key areas of the document are set out in Part B, which contains our detailed policy proposals. These include:

  • Aligning Network Rail and train operators’ incentives to increase efficiency;
  • Aligning incentives in the performance and possessions regimes;
  • Using incentives to improve capacity utilisation;
  • Consideration of the most efficient way of financing the Network Rail and ensuring its financial arrangements are transparent; and
  • Encouraging innovation and better environmental outcomes.

The document sets out specific questions on which we would appreciate stakeholders’ views but we also invite comments on any aspect of the document.

Next steps

We are now analysing the consultation responses which will help inform our April 2012 publication on our Framework for Setting Network Rail’s Funding. This will conclude on the incentive issues on which we consulted in December 2011 as well as our consultation on on-rail competition.

Consultation document

Responses