Rail Regulator welcomes first independent reports on Network Rail's stewardship of the national network
|
17 July 2003
In October 2002 Tom Winsor, the Rail Regulator, approved the appointment by Network Rail (then Railtrack) of Halcrow Group Ltd and Mouchel Consulting Ltd as reporters to provide the Regulator with an independent assessment of the robustness of data and information submitted to the Regulator by the company and concerning the management, efficient operation, renewal, replacement, enhancement and development of the railway network. The reporters' first main task was to provide the Regulator with reports on the 2002 annual return submitted by Railtrack. The reporters had open access to Network Rail and its staff in their audit of the company's 2002 annual return and have both produced comprehensive reports. The annual return produced by Network Rail is a key regulatory document and a requirement of its network licence. It is the primary means by which the company demonstrates its performance in delivering outputs identified by the Regulator. It reports on expenditure, operational performance, activity undertaken, asset condition, and network capability for a full financial year and is made available to the public through the company's website. Commenting on the reports from Halcrow and Mouchel, Tom Winsor said: "I am very pleased with the results of the reporters' work so far and with the cooperative approach of Network Rail. These reports show the value of having an independent assessment of the information generated by the company about its stewardship of the rail network. The findings are being taken forward in two ways: with Network Rail where they show the need for action by the company to address shortcomings; and with the reporters where they show the need for further and closer investigation." Both reporters indicate that they received great assistance in their work from Network Rail. They find that Network Rail is generally compliant with its obligations to report data and information to the Regulator in the 2002 annual return. Both also find that the company has sufficient processes in place to meet the reporting requirements and that due regard is being given to reporting requirements by Network Rail staff. Against this positive background each reporter does point to some inconsistencies of practice between regions in reporting and some inaccuracy in reporting against certain measures. Such instances indicate scope for improvement of and tightening in reporting. These matters are being taken up by ORR officials with Network Rail so that the necessary improvements can be made. The reporters will be providing reports on the 2003 annual return in July 2003. As part of the review of that annual return the reporters will be looking again at some of the matters which they identified as requiring action in their reports on the 2002 annual return. Notes to editors:1. Network licence Condition 23 requires the licence holder (Railtrack at the time of the introduction of the licence condition) to appoint independent reporters to the Rail Regulator. Pursuant to this requirement, Halcrow and Mouchel were appointed by Railtrack (now Network Rail) following a procurement exercise in which ORR officials were involved. The decision to appoint the two companies was taken by the Regulator, and announced in October 2002. This announcement can be found on the right hand side of this page, and is also obtainable from Sue MacSwan, ORR Librarian, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ. Tel: 020 7282 2001; fax: 020 7282 2045. 2. An executive summary of Mouchel Consulting Limited's report Independent Reporter B, Annual return 2002, Final Report - Executive Summary, March 2003 is available from the ORR librarian at the above address and from the ORR website on the right hand side of this page. 3. An executive summary of Halcrow Group Limited's report Rail Reporter, 2002 Annual Return Final Report, Executive Summary, March 2003 is available from the ORR librarian at the above address and from the ORR website on the right hand side of this page. 4. The reporters have an annual task to provide advice to the Regulator on the annual return provided by the licence holder. The requirements of the reporters are that they: a) Verify the accuracy of the data and information in the annual return; b) Analyse the processes used by Network Rail to put the data and information together; c) Confirm that the form and content of the annual return complies with the licence requirements; d) Compare Network Rail's expenditure with periodic review projections; e) Propose changes to the systems and procedures Network Rail uses to improve future annual returns; f) Identify any differences between the reporter and Network Rail as far as analysis of data and information; g) Identify relevant trends and any need for further analysis; h) Provide an overall assessment of Network Rail's performance as disclosed by the reporter's findings; and i) Set out information on asset condition derived from their investigations. Both reporters have fulfilled these requirements and submitted their reports on time.
Press enquiries
|
