ORR consults on the incentives framework for Network Rail to apply from 2009
31 July 2006
ORR/23/06
The Office of Rail Regulation has today published a consultation paper on the incentives framework for Network Rail and its partners. The paper examines how the incentives facing Network Rail, in particular, might be enhanced to drive further improvements in performance on a continuous and sustained basis.
The consultation is part of ORR’s 2008 Periodic Review, which will determine the outputs that Network Rail needs to deliver during the period 2009-2014 (CP4) and the access charges payable by train operators.
Bill Emery, ORR’s Chief Executive, said:
“An incentive framework for Network Rail and its partners, that aligns the incentives they face with the interests of passengers, users, Government and other funders of the mainline railway is crucial. Such a framework will help deliver our vision for the railways – a successful partnership of Network Rail, operators, suppliers and funders, working together to meet the needs of passengers and freight customers, and delivering a safe, high performing, efficient and developing railway. Our consultation is an important step in establishing the right incentive framework for the future.”
ORR is particularly interested in stakeholders’ views on:
- How Network Rail should be incentivised to develop and grow the network;
- How to incentivise Network Rail and its partners to seek innovative ways to delivering outputs, irrespective of the basis on which those outputs were funded at PR08;
- Whether benefit sharing mechanisms between Network Rail and train operators could be expected to drive material improvements in Network Rail’s efficiency and responsiveness;
- Whether there are elements of the franchising and regulatory structure that stifle innovation or hinder partnerships between Network Rail and train operators; and
- Whether amendments to Network Rail’s financial framework could be expected to deliver benefits to funders and users.
Notes for editors
- Copies of the consultation paper can be obtained from the ORR website at [www.rail-reg.gov.uk/upload/pdf/298.pdf].
- The paper has been informed by a series of meetings with stakeholders, including a stakeholder workshop held at ORR in May 2006.
- ORR commissioned three studies to help inform thinking on the incentives framework. These are being published on our website in parallel with the consultation paper and can be downloaded from [www.rail-reg.gov.uk/show/nav.180].
- The closing date for responses in respect of Network Rail’s financial framework (i.e. predominantly the issues raised in Chapter 5 of the consultation paper) is Friday 22 September 2006.
- The closing date for responses in respect of all other issues raised in this document is Friday 20 October 2006.
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ORR press office – 020 7282 2007/2141
