Regulator introduces reforms to rail industry’s commercial code

02 July 2004
ORR/31/04

    The network code is the central rail industry commercial code, and the Office of the Rail Regulator has been in extensive dialogue with the industry about urgently needed reforms to the code. This culminated in the formal consultation on proposed changes, which the Rail Regulator, Tom Winsor, launched at the beginning of June 2004.

    In the light of responses to consultation, the Regulator has concluded that it is in the public interest (as set out in his duties under section 4 of the Railways Act 1993) for certain changes to be made now. These are largely of a procedural and clarificatory nature and include in particular:

    • requirements for much improved transparency in the operation of the code and the procedures under it;
    • improved arrangements for dealing with operational disruption;
    • better information flows, in both directions, between Network Rail and train operators; and 
    • a requirement on Network Rail to facilitate development of network improvements and introduction of new trains, and to improve the quality of consultation on network changes.

    Tom Winsor said: “I am confident that the changes I am making today will materially improve working relationships in the industry, and that the industry will make further improvements in the spirit of the joint venture partnership that  needs to be in place, and is being developed.  I am sure my successors in the Office of Rail Regulation will participate and play an active role in this, with encouragement, engagement and guidance.

    “I am aware of suggestions that the proposals would have benefited from a longer consultation period. I emphasise, however, that the most recent consultation is the culmination of a process of engagement, with a previous consultation document published in March 2004. Moreover, I have amended my proposals in the light of consultation (including agreeing that certain changes should be left for future development by the industry, and to make provision that the changes to management of operational disruption need not take effect if the industry develops something better).

    “I have been very impressed with the degree of engagement from the industry (passenger and freight operators, Network Rail and others) in this work, which is a continuation of the reform programme which I began when I took office in July 1999, and in which the industry has been actively involved. The main part of the code reform will be for the industry to take forward over the coming months. I am pleased at the momentum and commitment that has built up behind this."

    Notes for editors:

    1. Reform of the network code: conclusions on phase one and notice of changes is available from the ORR website at http://www.rail-eg.gov.uk/upload/pdf/207.pdf also available 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.
    2. The network code (formally called the Railtrack Track Access Conditions) is a common set of rules applying to all parties to regulated track access contracts with Network Rail.   It covers certain matters, generally concerning industry processes, such as timetabling, which either need to be common to all train operators or where there are significant benefits in having commonality.  Condition C8 of the network code allows the Regulator to modify the network code, subject to various safeguards and procedural requirements, including a public interest test.
    3. The Regulator sought comments on his proposals for the first stage of the reform by 24 June 2004.  Having now considered the responses to the consultation, and following a number of discussions with various industry players, the Regulator has decided to proceed with some, but not all of the changes he proposed in his emerging conclusions document.  He has therefore today issued a modification notice to implement his proposals in accordance with Condition C8 of the network code to take effect on 10 January 2005. The second stage of the network code reform will be led by the industry with the  encouragement and support of the Office of Rail Regulation.
    4. The changes in stage 1 cover procedures for changes to the code, management of operational disruption, changes to the network and to vehicles used on it, provision of information, appeals to the Office of Rail Regulation, and some general provisions and definitions. 

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