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9 October 2002
ORR/18/02
Following the acquisition of Railtrack PLC by Network Rail Limited, the Rail Regulator, Tom Winsor, has set out today how he intends to strengthen the companys network licence. The changes are made necessary by the different corporate, financial and management structure of Network Rail, and were first set out in the Regulators June 2002 statement. Network Rail has consented to the proposed modifications to its network licence and, subject to consideration of any representations made during the 28-day statutory consultation period, the network licence will be modified next month.
The proposed modifications to Railtrack PLCs network licence will ensure that: - the licence holders business planning process is better aligned with the regulatory requirements;
- there is transparency in the accountability of Network Rails management;
- management have clear personal incentives in the absence of shareholders to improve efficiency, deliver contractual commitments and meet regulatory obligations;
- the licence holder is properly ring-fenced from other businesses within the Network Rail group; and
- Network Rail is permitted to take on Railtrack Groups responsibilities for Railway Safety, the independent safety subsidiary.
The publication - Notice of proposed network licence modifications, following the acquisition of Railtrack PLC by Network Rail Limited is being distributed widely. The 28-day statutory consultation period closes on 6 November 2002.
Notes:
The Regulators initial proposals were published in The proposed acquisition of Railtrack PLC by Network Rail Limited a statement by the Rail Regulator and proposed licence modifications, ORR June 2002.
This document is available here 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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