The Office of Rail Regulation (ORR) has today published its conclusions on Phase 2 of the reform of the rail industry’s Network Code . The conclusions set out further improvements to the Code, to be developed in detail by a steering group established by the industry.
Over the last 18 months all sides of the industry (Network Rail, passenger and freight operators, Department for Transport and others) have invested considerable time and effort in taking forward the reform of the Network Code first initiated by this Office. All concerned accept the importance of the Network Rail/train operator relationship and the need for all parties to work more closely together. The parties to this relationship now need to continue with this process of working co-operatively to improve the performance of the railways in an efficient and economic way to the benefit of their passengers, customers and funders.
The Network Code, is pivotal to the efficient day-to-day operation of the railway is the key to reflecting the roles of the industry parties and helping to achieve this aim. ORR looks forward to working with the industry and continuing to offer such support and guidance as it requires to achieve the necessary improvements to the contractual framework.
The document sets out a package of changes and a clear timetable within which ORR expects the industry to develop and implement them. The main changes concern Part F (vehicle change) and Part G (Network Change).
ORR believes that today’s conclusions, together with the associated policy framework for investments, will achieve the aim of aligning the Network Code structure with the requirements of the industry to ensure that the revised arrangements facilitate and incentivise an efficient outcome from a whole-industry perspective through:
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· clear, transparent, practical and relevant processes;
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· the right incentives to ensure the optimum whole industry solution;
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· a better defined facilitation role for Network Rail;
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· the inclusion of better industry processes for issues such as capability of the network, provision of information, vehicle characteristics, compensation arrangements and appeal rights;
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· an appropriate level of consultation and involvement for all stakeholders in industry processes.
Notes for editors:
1. The Network Code is a common set of contractual provisions contained in every track access agreement giving permission to use Network Rail’s network (other than certain pre-privatisation contracts such as the arrangements for Heathrow Express and London Underground). The Code concerns areas where common processes are necessary/desirable, such as delay attribution (Part B), timetabling (Part D), vehicle and network change (Parts F and G) and operation of the network (Part H). The Access Dispute Resolution Rules, setting out how disputes under access contracts are resolved, are annexed to the Network Code.
2. The reform of the Network Code has been an ongoing project developed following an initial approach to the industry in March 2004 and culminating in the then Regulator’s conclusions and notice of changes in July 2004, Reform of the Network Code: Conclusions on Phase 1 and notice of changes (Related links) That document envisaged further changes led by the industry with active ORR involvement, particularly in terms of looking at the economic architecture of the relationship between Network Rail and train operators (passenger and freight), and the structure and breadth of the code’s coverage. A number of industry groups were established on specific issues to take forward phase 2 of the reforms.
3. Publication of this document follows industry consultation on how further reform should be achieved. The consultation period on the emerging conclusions document, Network Code Reform Phase 2: update and emerging conclusions, closed on 12 August 2005 (Related links)
4. The Network Code Reform Phase 2: Conclusions Document is available on the ORR website (Related links)
