Regulator strengthens network licence

19 November 2002
ORR/22/02

Following on from the acquisition of Railtrack PLC by Network Rail Limited, the Rail Regulator, Tom Winsor, has strengthened the companys network licence.

The modified licence came into effect today and will ensure that:

  • arrangements continue to be in place to ensure that the safety and standards requirements of Condition 6 of the network licence are met;
  • the licence holders business planning process is better aligned with the regulatory requirements;
  • the licence holders activities are properly ring-fenced from other businesses within the Network Rail group;
  • there is transparency in the accountability of Network Rails management; and
  • in the absence of shareholders, management have clear personal incentives to improve efficiency, deliver contractual commitments and meet regulatory obligations.

These changes introduce new ring fencing provisions to protect the licensed company and complete the programme of licence modifications that form a critical part of my reform programme. Most importantly, they address the issues of accountability and governance arising from the different corporate and financial structure of Network Rail and will ensure that Network Rails accountability to its customers is strengthened and enhanced.

Notes to editors:

  1. The Regulators initial proposals to modify Railtrack PLCs network licence 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. Network Rail undertook that the licence holder would consent to the proposed modifications in June 2002.
  2. The Regulators proposed modification to Railtrack PLCs network licence was published in a consultation document Notice of proposed network licence modifications, following the acquisition of Railtrack PLC by Network Rail Limited, ORR October 2002. The 28 day statutory consultation period closed on 6 November 2002.
  3. A copy of the modified network licence is available 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

Press enquiries:

ORR Press Office : 020 7282 2089
Out of Office hours : 07659 127303

Glossary