ORR consults on programme for 2008 periodic review of Network Rail charges

11 August 2005
ORR/32/05

Network Rail’s current funding settlement – its ‘regulatory contract’ setting out the revenue it can raise from train operators and what it has to deliver in return – runs until March 2009. The Office of Rail Regulation (ORR) has today published a consultation paper which begins the process of re-setting the terms of the regulatory contract for the following control period, which is expected to run to 2014.

The document sets out for consultation ORR’s proposed timetable for the review, which is expected to conclude in October 2008. Because of the scope and importance of the review, preparation needs to start now.  The document also explains how what government wants from the railways, and is prepared to pay, and the views of other funders, and of users of the network, will feed into the review process. It outlines the information ORR will be seeking from Network Rail at different stages of the review to remedy the information deficiencies highlighted by the last review.

Chris Bolt, Chairman of ORR said:

“The outcome of this review will have a significant impact on the development of railway services over the next decade and beyond.  Rail users and taxpayers will rightly expect ORR to carry out the review in an open and consultative way, and reach decisions which accord with ORR’s aim of enabling the railway to be safe, well maintained and efficient.”

Notes for editors for editors

1. Periodic review 2008 – first consultation document is available from this website and is 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, email: rail.library@orr.gsi.gov.uk.
2. ORR’s previous Access charges review, completed in December 2003, has effect until March 2009.
3. The Government’s White Paper The Future of Rail (July 2004) and the Railways Act 2005 introduced a number of changes to the regulation of the railways. In particular, from early 2006, ORR will take over health and safety regulation functions for the railway from the Health and Safety Commission/Executive.
4. For charges reviews, the Railways Act 2005 requires the Secretary of State for Transport (for England and Wales) and Scottish Ministers (for Scotland) to present information on the high level outputs they are expecting the railway to provide, and the funding available, to ORR in a formal way. ORR must then determine Network Rail’s outputs, the cost of delivering them in the most efficient way, and the implications for charges payable by train operators to Network Rail for using the railway network. If, at the end of ORR’s review, there is a mismatch between the outputs the Secretary of State or Scottish Ministers are seeking and the funding available, the Act gives to ORR the task of determining which rail outputs should be delivered.

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