PR13 update: incentives to improve rail performance and value for money

21 December 2012

Network Rail and train operators will be incentivised in the future to collaborate more effectively to achieve the best possible performance, improving both service and value for money for passengers and taxpayers, the Office of Rail Regulation has confirmed.

The regulator has published three documents as part of the Periodic Review 2013 (PR13). PR13 will determine what new projects and performance targets Network Rail must achieve during 2014-19 (Control Period 5), the money it needs to do so, and the incentives required to encourage efficient delivery and outperformance. 

• Aligning incentives: decisions
  This introduces new incentives to encourage Network Rail and train operators to work more closely together. In future, train operators will be able to receive capped financial rewards in return for helping Network Rail to identify and deliver greater efficiencies and cost savings.
• Financial issues for Network Rail in CP5: decisions
  This document details changes to Network Rail’s financial framework, providing a more commercial and transparent approach. This will further incentivise the industry to control and reduce its expenditure.
• Volume Incentive Consultation
  A consultation on changes to existing incentives to improve the company’s management of capacity on the railways, and be more responsive to unexpected demand for use of network capacity.
  This consultation closes on 5 February 2013.

For more information about PR13: http://www.rail-reg.gov.uk/pr13/about/index.php