Regulator requires more and better information from Railtrack

8 March 2001

ORR/03/01

Regulator requires more and better information from Railtrack

The Rail Regulator, Tom Winsor, announced today that he intends to make several changes to Railtrack's network licence next month. He has initiated a 28-day statutory consultation period on changes to Railtrack's licence that would require Railtrack to produce better, more reliable information about the company's activities, its assets, and its financial position.

Three new licence conditions provide for:

• a system of reporters to supply an independent assessment of the robustness of company information that the company supplies about its stewardship of the rail network;
• an annual return of information from Railtrack on network capability and performance, asset serviceability and condition, and maintenance and renewal activities; and
• preparation of regulatory accounts by Railtrack in a form that will provide greater transparency for both the Regulator and investors, and thus facilitate the efficient financing of investment.

Commenting on these proposed new licence modifications, Tom Winsor said:

"These changes are an essential part of my strategy of improving Railtrack's accountability for its stewardship of the network. They will allow me to replace the present ad hoc approach to obtaining information from Railtrack with a comprehensive annual return, which will have been scrutinised by independent reporters acting on my behalf to ensure its accuracy. This will make it easier to assess whether Railtrack is fulfilling its obligations to maintain, renew, and develop the railway network on an ongoing basis, and if it is not, what remedial action is required to put matters right."

A copy of the consultation document Notice of proposed modifications to Railtrack's network licence: Reporter, Regulatory Accounts and Annual Return is available here or from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045 or e-mail: rail.library@orr.gsi.gov.uk.

Notes for editors:

1. The reporters will be provided by consultancy companies, who will be appointed by Railtrack with the approval of the Regulator, and will be funded by Railtrack. The reporters will owe a duty of care to the Regulator.
2. Following a consultation period ending on 5 April 2001, the Regulator expects to modify Railtracks network licence shortly thereafter, subject to considering any representations made during the 28-day consultation period beginning today. Railtrack has consented to the proposals.
3. The Regulators original proposals for the three licence modifications were set out in the Periodic review of Railtrack's access charges: Provisional conclusions of the incentive framework, available here or from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045 or e-mail: rail.library@orr.gsi.gov.uk.

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