23.08.18
DfT calls for intensified monitoring of Network Rail’s CP6 readiness to avoid repeat of CP5 ‘stasis’
The DfT has outlined its views in response to the ORR’s Periodic Review 2018 draft determination today, noting that it is “absolutely critical” that Network Rail is held to account for value for money deliverance of services – even if it means monitoring it more closely.
The ORR’s recommended in June that Network Rail invest an extra £1bn on renewing worn-out assets—funded through greater efficiency and savings—as well as £80m on safety-related initiatives. In its response, published today, the DfT highlighted the need to improve the level of communication and consultation between Network Rail and train operators as “critically important.”
The department also argued it shared the ORR’s view that Route Supervisory Boards, set up to improve external investment in the company, were “not yet operating in a satisfactory manner.”
“We expect to see continued pressure to clarify the role of these boards and enhance their effectiveness and transparency,” the document added.
The ORR’s suggestion that the role of the government as a major customer and a shareholder should be reflected upon CP6 scorecards was also supported by the government.
In ensuring NR’s readiness for the next control period, the document highlighted the issue as a matter of “critical importance,” adding: “The opening months of CP5, as ORR has recognised, were marked by stasis and lack of progress, with profound implications for the rest of the period. Avoiding a repeat of this for CP6 is essential. We would encourage the ORR to continue and, if necessary, intensify its monitoring of NR’s CP6 readiness.
“We further note that train performance continues to be far below expectations. Some of this may be down to specific events such as the recent timetable problems, but we would ask ORR to drive a continued focus on improving performance and to be mindful of the course of events over 2018-19 on the CP6 start-position.”
In regards to the ORR’s upcoming independent inquiry results, the DfT said that the System Operator’s capability and responsiveness “must improve” if they are to see improvements in the service it provides to customers.
“While we await the outcomes of the ORR’s independent inquiry into recent timetabling problems, it is our firm view that improving the effectiveness of the System Operator will be an important factor in avoiding any future repeat of these problems,” it added.
“We recognise that the structure and role of the System Operator may continue to need to evolve over the course of CP6, as the process of route devolution develops.”
An ORR spokesperson said: “ORR thanks the UK government for its response and is reviewing this alongside all consultation responses ahead of our final determination in October.”
RTM has reached out to Network Rail for comment.
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