The Office of Rail Regulation (ORR) has today published its emerging views on developments in the structure of Network Rail’s costs and charges, as part of the review started in November 2004.
The central objective of this review is to obtain a better understanding of Network Rail’s costs, in order to consider the implications for franchised passenger train operator charges, to develop an infrastructure cost model and to support allocation of Network Rail’s costs to devolved administrations and other local and regional bodies following The Future of Rail White Paper.
Today’s document, which is the second publication relating to the charges review, provides ORR’s response to the initial consultation, outlines proposals for reviewing the charging framework and for undertaking studies to examine each of the current charges. The review will continue to work towards a possible implementation date for revised charges of April 2006 but ORR will also give further consideration during the review to whether more fundamental changes to the charges framework are required.
The document also seeks industry views on the desired functionality for the infrastructure cost model that is being developed to forecast Network Rail’s costs of operating, maintenance, renewing and enhancing the network for different levels of usage and network capability.
Notes for editors:
1. Structure of costs and charges review: emerging views on key issues is also available from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138–142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: rail.library@orr.gsi.gov.uk.
2. The initial consultation document Structure of Costs and Charges Review: Initial Consultation Document, is also available from the ORR Librarian at the above address.
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