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22 August 2002
ORR/13/02
The Rail Regulator, Tom Winsor, has today published for consultation his business plan for the year 20022003. This is the third business plan of his term of office but it has been delayed to take account of the consequences of placing Railtrack into railway administration on 7 October 2001.
Commenting on the draft business plan for 20022003, Tom Winsor said: "The main emphasis for the Office of the Rail Regulator (ORR) during the last few months has been to continue a programme of effective regulation whilst seeking to facilitate Railtrack's exit from railway administration as soon as reasonably possible. The development of Network Rail as the monopoly infrastructure provider has had an influence on the ORR's business planning in terms of how the emerging company is to be regulated. My current business plan has, therefore, focused heavily on the next twelve months, and I will review plans for 20032004 and 20042005 as the year progresses.
"As a result of Railtrack being in railway administration, we did not complete all the tasks planned for 20012002 and thus we have a small under-spend which we have carried forward.
"We face significant challenges over the next twelve to eighteen months, not least the expiry and renewal of most of the passenger franchise agreements and the access contracts held by train operators while, at the same time, we have the possibility of conducting an interim review of the infrastructure provider's revenue requirements. We shall go forward with the development of a stable, clear, impartial and predictable regulatory system, with the necessary reforms that I have made and am now using, which will contribute to the successful introduction of the SRA's strategic plan and to the establishment of Network Rail as an effective and efficient infrastructure provider."
The draft ORR business plan concludes with the budgetary information for the two reporting periods, last year and the current year, and this draft has been circulated for consultation to a wide range of interested parties. Responses to this consultation are requested by Friday 27 September 2002.
Notes for editors - The ORR under-spend for the year 20012002 is £2,890,000.
- This will allow us to reduce the amount of money that we recover from train operators and Railtrack through the licence fees for this year by around 20 per cent.
- An independent review of the efficiency of the utility regulators published by HM Treasury on 19 February 2001 stressed the importance of business plans. The External Review of Utility Regulators is available from the Treasury website at www.hm-treasury.gov.uk.
- The ORR Draft Business Plan 2002-2003 is available on this website and 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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