Rail Regulator publishes three-year Operational Plan

17 July 2001
ORR/19/01

The Rail Regulator, Tom Winsor, in his Operational Plan 2001-2004, published today, sets out his overall aim and key objectives, and in broad terms the programme of work for the Office of the Rail Regulator for the next three years.

While the principal focus of this plan is on the next twelve months, the Regulator will now publish a three-year Operational Plan every year to enable the railway industry and others to evaluate and comment on proposed objectives as they develop in the light of circumstances.

The Regulator's proposed programme for the next year is one of maintained vigilance and increased regulatory scrutiny of Railtrack's stewardship of the network. This will have three main elements:

• the first will be a strengthened network licence, putting right the deficiencies of the original licence in areas such as Railtrack's asset knowledge, network integrity, monitoring of the quality of the work done, dealings with dependent customers and disposal of land;
• the second will be a reformed financial framework, providing Railtrack with a proper system of incentives to improve performance and grow the traffic - passenger and freight - on the network; and
• the third element will be stronger and simpler contracts between Railtrack and its train operator customers in relation to the specification of what Railtrack has to do for the access charges it receives, and what rights and remedies the parties are to have if things go wrong.

Commenting on the Plan, Mr Winsor said:

"Since my appointment in July 1999 I have adopted a rigorous approach to the regulation of the monopoly and dominant elements of the railway industry, principally Railtrack. The company's performance in the last year, and the effects which that has had not only on its prospects and standing but the position of others, has justified that approach. Indeed it makes a strong case for its intensification. This is certainly no time for slackening off."

The Government's review of the privatised utilities recommended that each of the sectoral regulators should consult on a draft programme of work to be undertaken by their office in the year ahead, and that they should then report back on progress against this plan twelve months later. Although this review did not cover his office, the Rail Regulator considered that many of the review's conclusions represented best practice for any regulatory body. He will therefore follow the review model, publishing every year a three-year Operational Plan for the Office of the Rail Regulator, consulting each year on the future one and reporting back on the previous one.

A copy of the document - Operational Plan 2001-2004 - 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, e-mail: rail.library@orr.gsi.gov.uk.

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