Latest Rail News

04.05.12

Incentive framework published for Network Rail

The ORR has set out Network Rail’s financial and incentive framework for 2014-19, including plans to vary track access charges in different regions.

The document focuses on encouraging collaborative ways of working, in an attempt to align operators’ incentives with those of Network Rail. This was a key concern of last year’s McNulty report.

As well as the new and revised track access charges, the framework includes efficiency benefit sharing schemes, greater transparency and a regional focus.

Rail minister Theresa Villiers touched on the changes in her speech to the Infrarail 2012 event at the NEC earlier this week, saying: “The Office of Rail Regulation is revising the way track access charges work to give train operators a financial incentive to reduce Network Rail costs.”

Evidence suggests that greater ‘on-rail’ competition for passengers also promotes good value for money, so the ORR will be exploring flexible ways to introduce this.

ORR chief executive Richard Price said: “Britain’s railways have seen real progress in recent years – improved punctuality, good levels of safety, and upgraded rail lines and stations. While efficiency has also improved, much more needs to be done to improve value for money to retain the confidence of rail funders so that continued high levels of investment by taxpayers can be justified.

“ORR’s review of Network Rail’s financial and incentive framework for 2014-19 will help drive greater efficiencies throughout the railways through the creation of better aligned industry incentives, and the drive for greater transparency. Only by working closely and openly together, towards joint goals, will Britain’s railways deliver value for passengers and taxpayers.”

To read ORR’s publication on Network Rail’s financial and incentive framework for between 2014-19, visit: http://www.rail-reg.gov.uk/upload/pdf/financial-incentive-framework-cp5.pdf

Tell us what you think – have your say below or email us at opinion@railtechnologymagazine.com

Comments

There are no comments. Why not be the first?

Add your comment

 

related

Rail industry Focus

View all News

Comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >

'the sleepers' blog

Apprentice to Co-leading the Rail Sector Deal

05/06/2019Apprentice to Co-leading the Rail Sector Deal

In a series of Q&A’s with key speakers on the run up to TransCityRail Midlands, we caught up with TransCityRail panellist and Amey’s commercial account director, Anna Delvecchio, for her insight into what the Rail Sector Deal mea... more >
read more blog posts from 'the sleeper' >

Interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

By Ewan Quayle, Rail Technology Magazine Reporter Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that ... more >
Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

24/06/2019Malcolm Holmes, executive director of West Midlands Rail Executive, announced as TCR Midlands speaker in Birmingham

Ahead of his appearance, Malcolm Holmes spoke with Rail Technology Magazine about what key leaders in the industry were doing to improve rail in the Midlands. He said: “It’s very... more >