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FeedsHome: June / July 2012 › ORR sets Network Rail’s financial and incentive framework for the future
ORR sets Network Rail’s financial and incentive framework for the future
04/07/2012 | Channel: Business Improvement
Better aligned incentives across the whole rail industry, enhanced by greater transparency of the costs of Britain’s railways, will help to drive industry savings of up to £3.5 billion by 2019, highlight plans set out by the Office of Rail Regulation (ORR).
Following extensive public consultation, ORR has outlined Network Rail’s financial and incentive framework for between 2014-19, which is focused on encouraging new collaborative ways of working across the industry to bring down the costs of
Britain’s railways and delivering for customers and taxpayers:
Alignment of incentives. Introduction of new and revised track access charges and efficiency benefit sharing schemes aimed at ensuring Network Rail, train operators, rolling-stock companies and the wider supply chain work collaboratively and efficiently.
Greater transparency and regional focus. Network Rail’s efficiency will be assessed in more detail than ever before at ‘route’ level, and access charges will be calculated for individual routes to help improve use of rail capacity across the network.
Evidence shows that greater ‘on-rail’ competition – the direct competition between train operators for passengers – can promote greater value for money on Britain’s railways. ORR will explore opportunities for more flexible on-rail competition where it provides benefits for passengers and taxpayers.
These moves build on industry-led innovation to improve the way it works together through ‘alliances’ and Network Rail’s devolution, and provide strong building blocks for further future changes in the funding of the railways beyond 2019, where ORR expects to implement, for example, regional rail funding reviews.
To read ORR’s publication on Network Rail’s financial and incentive framework for between 2014-19, visit:
www.rail-reg.gov.uk/upload/pdf/financial-incentive-framework-cp5.pdf
Britain’s railways and delivering for customers and taxpayers:
Alignment of incentives. Introduction of new and revised track access charges and efficiency benefit sharing schemes aimed at ensuring Network Rail, train operators, rolling-stock companies and the wider supply chain work collaboratively and efficiently.
Greater transparency and regional focus. Network Rail’s efficiency will be assessed in more detail than ever before at ‘route’ level, and access charges will be calculated for individual routes to help improve use of rail capacity across the network.
Evidence shows that greater ‘on-rail’ competition – the direct competition between train operators for passengers – can promote greater value for money on Britain’s railways. ORR will explore opportunities for more flexible on-rail competition where it provides benefits for passengers and taxpayers.
These moves build on industry-led innovation to improve the way it works together through ‘alliances’ and Network Rail’s devolution, and provide strong building blocks for further future changes in the funding of the railways beyond 2019, where ORR expects to implement, for example, regional rail funding reviews.
To read ORR’s publication on Network Rail’s financial and incentive framework for between 2014-19, visit:
www.rail-reg.gov.uk/upload/pdf/financial-incentive-framework-cp5.pdf
