This would see Network Rail deliver efficiencies of between 16 per cent and 28 per cent in addition to the 21 per cent efficiency improvement it should achieve in the current period which ends in 2014.
In the letter, the rail regulator sets out its assessment of Network Rail’s overall revenue requirement in England and Wales for the 2014-2019 funding period (Control Period5), which commences in April 2014, taking account of the costs of the existing railway and agreed enhancements. The advice on Network Rail’s costs and outputs for CP5 will inform the Transport Secretary’s determination of what the Government wants to achieve from the railways in this period and the funds available to do this.
The assessment is an important part of the rail regulator’s periodic review (PR13) – ORR’s assessment of what Network Rail must achieve from 2014, the money it needs to do so, and the incentives needed to encourage delivery and performance. It builds on the rail regulator’s commitment to improving the value for money that the railway provides to its customers and taxpayers.
To read ORR’s advice in full, visit:www.rail-reg.gov.uk/pr13/publications/index.php