Overview
After conducting a detailed review of Network Rail’s plans for England & Wales it includes two scenarios for expenditure. The first assumes that a £0.5 billion centrally managed fund is used to manage risks that emerge during CP7. The second is a ‘risk-adjusted’ plan which is supported by descoping up to £1.5 billion of renewals and other activities across Network Rail’s regions in England & Wales, if risk materialises.

The UK’s sector continues to recover from the pandemic against a backdrop of inflationary pressures, recent industrial action, as well as declines in passenger and freight train performance. The sector must also meet the challenges of climate change by contributing to a low-emissions railway and planning for severe weather events.  Spend for CP7 is £44.8 billion compared with CP6 of £42.7 billion.

Train Performance
The ORR expect no further decline in train performance and for Network Rail to deliver ambitious but deliverable improvements for passengers and freight customers. They also propose £0.04 billion is reserved for a train performance improvement and innovation fund (PIIF) in England & Wales.

Asset Performance & Sustainability
The ORR draft determination proposes a re-allocation of expenditure of £0.55 billion to increase core renewals.

Health & Safety
Network Rail’s risk-adjusted plan implies scope for at least £3.2 billion of efficiencies in England & Wales during CP7. After careful scrutiny of the plans the ORR consider this target will be stretching but deliverable.

Risk Funding
Network Rail has initially allocated £1.5 billion for its risk planning fund however, the ORR have also identified further risk funding opportunities which would mean a total of £2.0 billion going into the their Risk Fund.

Overall Funding & Meeting Requirements
The ORR believes that the overall funding should allow Network Rail to deliver its commitments across the network in CP7.  Click here to see the ORR’s report. 

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