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25 September 2002
ORR/14/02
Following consultation the Rail Regulator, Tom Winsor, today announced a review of infrastructure costs if Network Rail acquires Railtracks infrastructure business.
This follows requests from the Strategic Rail Authority and Network Rail to the Rail Regulator arguing that the two conditions for triggering such a review have been met. They are that there has been a material change in circumstances; and there are compelling reasons to initiate an access charges review.
Mr Winsor said: All parties have told me that they are concerned about the possible impact of Railtracks overspending and inefficiency. Such a review would provide an opportunity to promote efficiency and economy on Network Rails part by improving the level of control over spending and promoting the delivery of the required outputs.
It is for the SRA to provide strategic direction for the railways and the SRA is developing a new business planning framework to ensure that the business case for Government-supported investment in the railway is clear, and the SRA is formulating strategies which will establish the outputs it wants to buy from the existing network.
Network Rail needs to be properly funded for the competent and efficient delivery of the outputs required under its network licence and its access agreements. Understanding the implications of the review for the SRAs budget and its strategies is therefore a critical input.
The statement Network Rail: Interim review of access charges is available 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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