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The licensing regime

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The operation of railway assets and the provision of railway passenger and freight train services are of national importance and as such are subject to a range of regulatory requirements designed to safeguard the public interest.

Railways Act 1993 licences

Section 6 of the Railways Act 1993 (the Act) makes it an offence to act as the operator of a railway asset other than a passenger train or freight train within the scope of the Railway (Licensing of Railway Undertakings) Regulations 2005 (the Regulations) without holding a licence or a licence exemption granted under the Act. This applies to all railway assets regardless of the scale of operations, and includes operators of privately owned freight terminals and other minor networks.

An "operator" is defined as "the person having the management of that railway asset for the time being". For instance, in the case of a train, this would normally be the person from whom the driver takes instructions (that is management instructions rather than signalling instructions).

There are five different standard licences; one for each category of railway asset (see Licence conditions):

A network licence authorises a person to be the operator of a network; to be the operator of a train being used on a network for any purpose comprised in the operation of that network; and to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, using a train for any purpose comprised in the operation of that network. Network Rail holds a bespoke network licence.

A passenger licence authorises a person to be the operator of a train being used on a network: for the purpose of carrying passengers by railway; for a purpose preparatory or incidental to, or consequential, on using a train for that purpose; and for the purpose of assisting other operators of railway assets.

A non-passenger train operator's licence authorises a person to be the operator of a train being used on a network: otherwise than for the purpose of carrying passengers for hire or reward; for a purpose preparatory or incidental to, or consequential on, using a train for that purpose; and for the purpose of assisting other operators of railway assets. This is the type of licence held by some rail maintenance and renewal companies.

A station licence authorises a person to operate a specified station.

A light maintenance depot licence authorises a person to be the operator of a specified light maintenance depot (including any network, insofar as a light maintenance depot is also a network); and to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, the provision of light maintenance services at any light maintenance depot of which the person is authorised by licence to be the operator.


European licences

The Railway (Licensing of Railway Undertakings) Regulations 2005 (the Regulations) require most persons wishing to operate either passenger trains or freight trains in Great Britain to hold an appropriate European Passenger Licence or European Freight Licence, and a Statement of National Regulatory Provisions (SNRP).

ORR grants two different types of European licence (see Licence obligations):

The European Passenger Licence authorises a railway undertaking [see definition in the Glossary in the right hand navigation bar] to be the operator of a train being used on a network: for the purpose of carrying passengers by railway; for a purpose preparatory or incidental to, or consequential on, using a train for that purpose; and for the purpose of assisting other operators of railway assets. This is the type of licence held by typical franchised passenger train operators.

The European Freight Licence authorises a railway undertaking to be the operator of a train being used on a network: for the purpose of carrying goods by railway; for a purpose preparatory or incidental to, or consequential on, using a train for that purpose; and for the purpose of assisting other operators of railway assets. This is the type of licence held by typical freight train operators.

In principle, the European licences permit railway undertakings to operate the described services in any EEA state. To operate within Great Britain holders of European licences will also require a Statement of National Regulatory Provisions (SNRP) from ORR, in addition to securing safety, access and other approvals. Other EEA states will require European licence holders to satisfy  national regulatory requirements particular to each state.

Schedule 4 of the Regulations mentions template licences and SNRPs which were published on 25 October 2005. These were:

The most up-to-date model licences and SNRPs can be viewed on our Model Licences page. The current text of licences and SNRPs in force can be found on the Public Register page.
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