The rail regulator is set to lower the cost of investing in Britain’s railways by reducing the risk fees Network Rail charges to third parties and private investors, as part of a wider push to support economic growth.
Network Rail currently applies risk fees to cover the financial exposure it takes on when third parties — including private investors — fund or deliver work on the rail network. However, a deep‑dive review by the Office of Rail and Road (ORR) has found that there is scope to reduce these charges.
The regulator concluded that risk fee funds could be set closer to a break‑even level, rather than exceeding the level required to manage risk. As a result, ORR will work with Network Rail to introduce targeted adjustments to bring fees down while maintaining appropriate protections.
The proposed changes follow ORR’s review of the Rail Network Investment Framework (RNIF), which was commissioned by HM Treasury to help unlock more direct private investment in rail infrastructure. The review examined how the framework operates in practice and where it could be improved to remove barriers to investment.
Reducing risk fees forms part of a broader package of reforms designed to make the RNIF clearer, fairer and more proportionate. ORR said the changes aim to strike a better balance between encouraging investment and safeguarding the interests of the railway and taxpayers.
ORR is now working closely with Network Rail and expects to set out detailed proposals on how the fees will be adjusted in autumn 2026.
Graham Richards, Director of Planning and Performance at ORR, said:
“We recognise the importance of third party and private investment in the railway for growth and are proud of our regulatory work to facilitate it."
“Our recommendation to reduce risk fees for third parties and private investors is part of our wider work to make investing in Britain’s railway clearer, fairer and with proportionate rules to protect the industry and taxpayers”.
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