The main methods of enforcement of the principal legal sources and instruments of the network operator's accountability are as shown below.
The mechanism for this Office to enforce licence conditions is statutory, under sections 55-58 of the Railways Act 1993. These powers of enforcement are considerable.
The enforcement of contracts and industry-wide codes is in the hands of the parties to the contracts in question. In the case of access contracts, which allow train operators to use the network operator's network, the passenger and freight train operators are able to take the necessary action themselves, and public authorities have no locus in their enforcement. In the case of contracts between the network operator and funders, enforcement is down to the relevant funder.
The periodic review process, which resets the network operators charges for use of its network and other aspects of the railway industry's financial framework every five years, is conducted by ourselves, with a right of appeal for Network Rail to the Competition Commission. This review also considers the outputs that Network Rail should provide.
Charges are incorporated in track access agreements. The outputs that Network Rail is required to deliver are monitored and enforced by the ORR under the network licence.
ORR published its Economic enforcement policy and penalties statement on 27 April 2006. This document sets out ORR's licence enforcement policy in its role as economic regulator and contains the penalties statement required by section 57B of the Railways Act 1993.
The purpose of the Economic enforcement policy and penalties statement is to describe how we use our licence enforcement powers to ensure that the public interest is protected and that the industry delivers a safe, high quality, and efficient service to passengers and freight customers which represents value for money. Our approach is one of firm but fair enforcement, taking a staged approach to monitoring compliance and allowing the industry to try to resolve problems itself. We will however, take appropriate enforcement action, including imposing penalties, if necessary.