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Periodic review 2008

The 2008 periodic review (PR08) will set Network Rail's outputs, revenue requirement and access charges for the five years from 1 April 2009 to 31 March 2014 (control period 4).

PR08 includes extensive work determining the appropriate financial and incentive framework for Network Rail and reviewing the potential for efficiency savings in its expenditure.

It is the first periodic review to take place since the passing of the Railways Act 2005. This amends Schedule 4A of the Railways Act 1993. It introduces a new process based around High Level Output Specifications (HLOSs) and Statements of Funds Available (SOFAs) produced by the Secretary of State and by Scottish Ministers. This introduces the need for a detailed understanding of whole-industry costs and benefits when undertaking the review.

PR08 is also the first to be carried out following the transfer to ORR of policy and enforcement reponsibilities in respect of rail safety regulation.

In this as in any periodic review it is important that stakeholders fully engage with the issues and respond fully to ORR consultations. Stakeholders should ensure that they are aware of the periodic review timetable (published on 28 February 2007 below).

Documentation

The documents below are available for download as PDF files:

General publications
23 Apr 2008	Consultation letter - Periodic Review 2008: Implementation
9 Apr 2008	Periodic Review 2008: Train Operator Compensation from Possessions – consultation on changes to the compensation regime for passenger operators and Part G of the Network Code for all operators Appendix 1 - Estimation of Schedule 4 costs Appendix 2 - Schedule 4 franchised operators Appendix 3 - Schedule 4 non-franchised operators Appendix 4 - Part G network change	Responses
31 Mar 2008	Reasons for decision on outputs document of 14 February 2008
13 Mar 2008	Further industry recommendations Letter to John Thomas - Recommendation follow-up on Schedule 4 - 13 Mar 2008 Recommendation to ORR on changes to the regime for disruptive possessions Part G amendment (redlined version) - 7 Mar 2008 Recommendation on Schedule 4 amendments - redlined version
14 Feb 2008	Publication: Update on the framework for setting access charges and strategic business plan assessment (see below for Consultants documents)
14 Feb 2008	Industry recommendations on possessions compensation regime Recommendations on possessions compensation regime 31 Jan 2008 Letter from Ian Marlee Network Rail - 31 Jan 2008 Associated legal drafting - 6 Feb 2008 Part G amendments and redlined version - 15 Oct 2007 Passenger Schedule 4 amendments and redlined version 6 Feg 2008
14 Feb 2008	Industry workshop on PTE sponsored increments/decrements - presentation slides from ORR and Network Rail
7 Jan 2008	Letter to Iain Coucher, Network Rail: Strategic business plan
20 Dec 2007	Letter to DfT: Periodic review 2008 - likely affordability of your high level output specification
20 Dec 2007	Letter to Transport Scotland: Periodic review 2008 - likely affordability of your high level output specification
20 Dec 2007	Letter to DfT: National Stations Improvement Programme – preparation for ORR’s determination of the deliverability of the programme
20 Dec 2007	Press notice: Regulator says railway improvements for 2009-14 are likely to be affordable within committed public funds
1 Nov 2007	Consultation on Network Rail's strategic business plan	Responses
18 Oct 2007	Consultation letter: CEPA’s report on indexing the allowed rate of return. (Report)	Responses
15 Oct 2007	Consultation letter: Freight only line charge conclusions. This letter explains our decisions on the cost allocation and charging systems for freight only lines.
11 Oct 2007	Consultation on the possessions compensation regime (For accompanying consultants reports see below)
2 Oct 2007	Presentations from PR08 Outputs Project and Network Licence Review Workshop 21 September 2007
27 Sep 2007	Consultation letter: Network Rail's outputs - network availability
6 Sep 2007	Consultation letter: Periodic Review 2008: Financial issues update and further consultation	Responses
31 Aug 2007	Covering letter: Periodic Review 2008: Network Rail's outputs
31 Aug 2007	Consultation - Periodic Review 2008: Network Rail's outputs	Responses
24 Aug 2007	Final guidance in Network Rail's strategic business plan
25 Jun 2007	Periodic review 2008: Charge to recover the costs of freight-only lines	Responses
23 Apr 2007	Changes to Passenger Performance Regime - Schedule B	Responses
28 Feb 2007	Summary of Advice to Ministers and framework for setting access charges document
28 Feb 2007	PR08 Advice to Ministers and framework for setting access charges
28 Feb 2007	Notice of proposal to undertake an access charges review under paragraph 1c of Schedule 4a to the Railways Act 1993
28 Feb 2007	Periodic Review 2008 (PR08) timetable (update from May 2006)
8 Jan 2007	Periodic Review 2008 - Train operator compensation from possessions
5 Dec 2006	Periodic Review 2008 - Consultation on Caps for Freight Track Access Charges	Responses
5 Dec 2006	Periodic Review 2008 - A Reservation Charge: Consultation on Issues and Options	Responses
29 Sep 2006	Approach to the amortisation of Network Rail's Regulatory Asset Base - Letter to Network Rail	Responses
29 Sep 2006	Network Rail Initial Strategic Business Plan 2009-14: Issues and Options - Consultation letter	Responses
29 Sep 2006	Periodic Review 2008 (PR08): The treatment of risk and uncertainty - Consultation letter	Responses
31 Jul 2006	Letter to invite responses to Enhancing incentives for continuous improvements in performance
31 Jul 2006	Enhancing incentives for continuous improvements in performance: a consultation paper (related press notice)	Responses
27 Jul 2006	Letter to invite responses on Study of Freight Vehicle Effects on Rail Surface Damage (TTCI Report) - see below
14 Jul 2006	Powerpoint presentation for Structure of charges workshop
8 Jun 2006	Structure of track access and station long term charges (related press notice)	Responses
25 May 2006	Periodic Review 2008 timetable (see latest timetable at 28 Feb 2007)
7 Feb 2006	Office of Rail Regulation letter to Network Rail - Periodic Review 2008 - Network Rail's initial strategic business plan
15 Dec 2005	Periodic Review 2008 - Initial assessment of Network Rail's CP4 revenue requirement and consultation on the financial framework (related press notice)
11 Aug 2005	Periodic review 2008 - first consultation document (related press notice)	Responses Responses summary

Consultants' reports
14 Feb 2008	Review of Possessions Cost Compensation Stage 2: Final Report - Faber Maunsell
14 Feb 2008	Peer review of Network Rail's indicative charges proposal made as part of its Strategic Business Plan - ITS University of Leeds
14 Feb 2008	SERIES OF POSSESSIONS FOLLOW-ON WORK Summary report of methodology and results of analysis - Steer Davies Gleave
14 Feb 2008	Variable usage costs - Halcrow Group Limited
14 Feb 2008	PR08: Cost benefit study on reservation charge - August 2007 - NERA
4 Dec 2007	Network Availability KPI - Reporting Suite - Outline Technical Specification - Steer Davies Gleave
4 Dec 2007	Network Availability KPI - Summary Report - Steer Davies Gleave
11 Oct 2007	PR08: Review of Possessions Cost Compensation - Final - Faber Maunsell
11 Oct 2007	PR08: Train operator compensation for possessions: Compensation for loss of Passenger Revenue - Final - Steer Davies Gleave
27 Sep 2007	Network Rail's outputs - network availability - Steer Davies Gleave
Jun 2007	Risk adjusted cost of capital for Network Rail - Cambridge Economic Policy Associates Ltd
4 Sep 2007	Switches and Crossings Service Life Report. Review of Network Rail's S&C service life predictions - Halcrow Group Limited
22 Aug 2007	Independent Reporter A: Track Service Life Project Final Report - Review of Network Rail’s Further Work on Track Service Life Predictions – Halcrow Group Limited
4 Jun 2007	- Impact of Proposed New Charge for Freight Only Lines on Demand for ESI Coal - NERA Economic Consulting - Addendum - NERA Economic Consulting - ORR letter to consultees
26 Feb 2007	Further assessment of Network Rail's freight variable usage costs and freight only line costs - Halcrow Group Limited
7 Feb 2007	Advice on assessing enhancement schemes proposed in Network Rail's ISBP - Steer Davis Gleave
6 Feb 2007	Best practice review of Network Rail’s asset management - AMCL
3 Jan 2007	Advice on assessing enhancement projects proposed in Network Rail's ISBP - Scot Wilson
18 Dec 2006	Corporate form, financial guarantees and efficiency performance - NERA
Dec 2006	Independent Reporter A - Reporter Mandate - Freight Cost Variability - Halcrow Group Limited
Nov 2006	Impact of track access charge increases on rail freight traffic - MDS Transmodal Limited
9 Oct 2006	What is the necessary margin for Network Rail to accommodate risk? - OXERA
Jul 2006	The role of incentives in the GB rail industry - Cambridge Economic Policy Associates
Jul 2006	Role of incentives in the GB rail industry - OXERA
Jul 2006	Implications of amending franchise agreements - NERA
Jul 2006	Study of Freight Vehicle Effects on Rail Surface Damage (TTCI Report) - for consultation
Dec 2005	Scoping study for scarcity charges, Institute for Transport Studies Appendix 2: Issues in defining and measuring railway capacity
Dec 2005	Assessing Network Rail's scope for efficiency gains over CP4 and beyond: a preliminary study, LEK Consulting (International) Ltd and Oxera Consulting Ltd

Recommendation to ORR on changes to the regime for disruptive possessions

Periodic review 2008

Documentation

General publications

Consultants' reports