01.07.06
ORR consults on incentives framework for Network Rail to apply from 2009
The Office of Rail Regulation has published a consultation paper on the incentives framework for Network Rail and its partners. The paper examines how the incentives facing Network Rail, in particular, might be enhanced to drive further improvements in performance on a continuous and sustained basis.
The consultation is part of ORR's 2008 Periodic Review, which will determine the outputs that Network Rail needs to deliver during the period 2009-2014 and the access charges payable by train operators.
Bill Emery, ORR’s chief executive, said, “An incentive framework for Network Rail and its partners, that aligns the incentives they face with the interests of passengers, users, Government and other funders of the mainline railway is crucial. Such a framework will help deliver our vision for the railways - a successful partnership of Network Rail, operators, suppliers and funders, working together to meet the needs of passengers and freight customers, and delivering a safe, high performing, efficient and developing railway. Our consultation is an important step in establishing the right incentive framework for the future.”
ORR is particularly interested in stakeholders' views on: how Network Rail should be incentivised to develop and grow the network; how to incentivise Network Rail and its partners to seek innovative ways to delivering outputs; whether benefit sharing mechanisms between Network Rail and train operators could be expected to drive material improvements in Network Rail's efficiency and responsiveness; whether there are elements of the franchising and regulatory structure that stifle innovation or hinder partnerships between Network Rail and train operators; and whether amendments to Network Rail's financial framework could be expected to deliver benefits to funders and users.
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