Licence exemptions

Where a proposed operation falls within the scope of the Railway (Licensing of Railway Undertakings) Regulations 2005 (the Regulations), railway undertakings will need to apply for a licence and/or SNRP. ORR cannot grant exemptions under the Regulations.

The Office of Rail Regulation (ORR) or the Secretary of State may grant exemptions from the obligation to hold a licence under the Railways Act 1993. Note that this is separate from the ORR's power to grant facility owners exemption from the access regime under section 22(3) of the Railways Act 1993.

In taking decisions on whether or not to grant an exemption, the Office of Rail Regulation must have regard to its general duties under section 4 of the Railways Act. A key consideration in these decisions will be the extent of interaction between the operations or facilities in question and the operation of the national rail network, and hence the implications for other operators. Please see the Railway Licensing: Guidance on Licence Exemptions for further details.

The Railways Act 1993 enables the Secretary of State to grant exemptions to a particular class or description of persons as well as to individual applicants. For example the Railways (Class and Miscellaneous Exemptions) Order 1994 (the 'CMEO') exempts, among other things, certain named railway assets and categories of railway assets from the licensing provisions of the Railways Act 1993. This includes, for example, railway assets operated by someone other than the British Railways Board (or a subsidiary) or London Regional Transport (or a subsidiary) on 1 April 1994. Many other railway assets are exempted by the CMEO and prospective applicants are advised to check the CMEO before submitting an application for an individual exemption. The CMEO is discussed in Railway Licensing: Guidance on Licence Exemptions.

ORR is only able to grant exemptions to individual applicants, although these may be in respect of particular specified assets or classes of assets.