ORR publishes draft conclusions on Network Rail signalling expenditure

7 September 2005
ORR/37/05

The Office of Rail Regulation today published its draft conclusions on Network Rail’s proposals for increased signalling expenditure in the current price control period running to March 2009.  ORR proposes to accept the need for additional signalling renewal work compared with that allowed for in the 2003 access charges review.  However, ORR considers that efficient delivery of this will involve expenditure of only £175 million on signalling renewal in the control period, in addition to the £1,723 million allowed for in the 2003 review, compared with Network Rail’s proposed addition of £296 million.

The consultation document published today sets out the reasons for these conclusions:

  • additional work on signalling renewal schemes in this control period (CP3) can be justified, largely on the grounds of the condition of the signalling assets and the opportunity to minimise whole-life costs by targeted renewal; and
  • Network Rail can achieve efficiencies by the end of CP3 in excess of the 30% unit cost efficiencies it has assumed in its expenditure submission by ensuring that schemes are effectively specified and procured.

Notes for editors

  1. The Access Charges Review 2003 (ACR2003) concluded that there was uncertainty about Network Rail’s future signalling strategy and that a review of signalling expenditure would be carried out to determine the funding requirements for the last three years of Control Period 3, for which it allowed £1,723 million for signalling renewals and maintenance.  Following responses to our November 2004 consultation, it was agreed to deliver the ACR2003 commitment within the two years (the medium-term review), but to extend the exercise to include a long‑term review. Today’s draft conclusions focus on this medium- term review.   A further review will consider the funding for Control Period 4 (CP4, which is expected to run from 1 April 2009 to 31 March 2014) and will reach conclusions in 2006.
  2. Signalling Review: Draft Conclusions of the Medium-Term Review is available in Related links, and 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.

Press enquiries

ORR Press Office – 020 7282 2007/2141
Out of office hours – pager 07659 127 303