Regulator simplifies incentives for efficient work on the railway

20 December 2001
ORR/28/01

The Rail Regulator, Tom Winsor, today announced proposals which will simplify the arrangements for the maintenance and renewal of the network and remove any perverse incentives in the existing regime.

Railtrack plans the times at which it will close parts of the network - usually at nights and at weekends - so as to maximise the efficiency of the work and minimise the impact on freight and passenger train operators and their services. This is known as taking possession of the network. Railtrack must compensate operators for any disruption to their services. This compensation is paid under the possessions regime.

The existing possessions regime can work against these objectives. For example, train operators may be reluctant to allow Railtrack to take longer possessions - which enable higher efficiency - because of the financial consequences for them. This is not in the overall interests of the industry and its users.

The new regime, on which the Regulator is now consulting the industry, removes anomalies like this and enables Railtrack and train operators to get the most out of the time which Railtrack takes to repair, maintain and renew the network whilst protecting the interests of passengers and freight customers.

The Regulator has worked closely with the industry, including the SRA, ATOC, freight operators, and Railtrack on the development of these proposals.

Mr Winsor said: "These new arrangements will effect a material improvement in the planning of possessions and the efficiency of the work done on and to the network. They will enable better resource planning and ensure a smoother, sounder approach to maintenance and renewal and timely information about work on the network for passengers and freight customers.

"This is a necessary improvement and simplification of a complex and flawed regime."

Notes to editors

The Possessions Review: Provisional conclusions on the Schedule 4 incentive structure is the second consultation document in the Rail Regulator's possessions review. The first consultation document - The possessions review: an initial consultation - was published in July 2001. These are also available from 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.
The Regulator hopes to reach conclusions during February 2002 so that the new incentives are in place from June 2002.

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