ORR publishes its draft conclusions on the review of Schedule 8 of franchised passenger operators’ track access contracts (the performance regime)

15 June 2005
ORR/26/05

The Office of Rail Regulation (ORR) has today published its draft conclusions on the review of Schedule 8 of franchised passenger operators’ track access contracts (the performance regime).

There have been marked improvements in industry performance over the last year but further sustained improvements are necessary to meet the needs of passengers and freight customers. These draft conclusions on changes to be made to the performance regime are aimed at complementing and reinforcing other performance related initiatives being driven by the industry to ensure that such sustained improvements are achieved.

Chris Bolt, ORR Chairman, said:
“The changes to be made to the performance regime, along with other industry initiatives, provide the necessary framework and incentives for Network Rail and train operators to work together to ensure continued and sustained improvements in industry performance to the benefit of passengers and freight customers”.

It is intended that the review’s conclusions will be implemented partly on 1 April 2006 and partly at the time of the re-letting of franchises.

Notes for editors

1. Review of the Schedule 8 performance regime: draft conclusions is available as a related link.
2. The key changes to be made to the performance regime are:
• an adjustment to payment rates to reflect more accurately the impact on train operators’ revenues of changing levels of performance;
• a streamlining of compensation provisions by replacing the compensation arrangements for persistently poor performance, currently contained in local output commitments (Part L of the Network Code), with new provisions in Schedule 8;
• the introduction of train operator based performance trajectories at the start of new franchises; and
• a commitment not to change the structure of the regime during the life of a franchise in order to provide a greater degree of certainty for franchise bidders.
3. Other performance related initiatives being taken forward by the industry include the development of joint performance improvement plans; development of more effective procedures where Network Rail and train operators will work together to restore services to normal operation after disruptive events; and the introduction of integrated control centres.
4. Review of the Schedule 8 performance regime, Emerging views and issues is available as a related link.
5. The initial consultation document is available as a related link.

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