Office of Rail Regulation streamlines licence exemptions process

31 March 2005
ORR/14/05

The Office of Rail Regulation has today published new guidance for rail operators applying for a licence exemption. The guidance sets out a streamlined licence exemption application process.  This follows a generally positive response to the consultation published in December 2004.
 
Licensing is one of ORR’s key statutory functions by which it regulates rail operators. ORR has discretion to exempt operators from the need to have full licences, a power it uses where it considers there is no public interest benefit in requiring them to hold a licence. Typically exemptions have been for maintenance contractors operating entirely within full track possessions, and heritage railway operations.
 
The proposals being implemented today reflect the proportionate use of our licensing powers. They will enable ORR to focus on protecting the interests of users and funders of the national rail network, while making life easier for exemption applicants and avoiding an unnecessary burden on smaller operators.
 
The guidance will be of interest to rail organisations that may wish to apply for licence exemptions in the future. Existing exemption holders are unaffected.

Notes for editors

1. Section 7 of the Railways Act 1993 (as amended) provides for ORR to grant licence exemptions to individual operators of railway assets. Licence exemptions are less demanding than licences in terms of the obligations imposed and ongoing scrutiny. To date, ORR has granted around 100 exemptions.
2. Implementing the streamlined process will have no impact on existing industry safety arrangements. The Health and Safety Executive is the current safety regulator for the railways (including heritage operations). The Government intends that this role will be undertaken by ORR in the future and the Railways Bill introduced into Parliament on 25 November 2004 makes provision for this.  
3. Consultation responses supported the publication of guidance aimed at licence exemption applicants. From today, those applicants will be able to refer to published guidance specifically aimed at their needs and that reflects the streamlined process.
4. Consultation responses were generally supportive and can be viewed in full (see related links).
5. ORR’s conclusions letter, confirming that the proposals will be implemented and addressing issues raised in consultation responses, is available in the related links.
6. Railway licensing: guidance on licence exemptions is available in the related links.

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