Media centre

Thursday 15 Dec 2005

NETWORK RAIL COMMENTS ON ORR’S INITIAL ASSESSMENT OF FUTURE REVENUE REQUIREMENTS

Region & Route:

National

Network Rail welcomes the early publication of the ORR’s assessment of future revenue requirements.  Although this is still three years away, having a considered and detailed analysis of the requirements will enable constructive dialogue on options to take place. During this five-year, Control Period (CP3), the regulator set an aggressive cost reduction target of 31%.  We are well on the way to achieving these targets and initiatives, such as taking maintenance in-house, the systematic renegotiation of all supply contracts and improved delivery processes, are driving through significant efficiencies.  Over the coming months, we will work closely with the ORR, the DfT and the Scottish Executive to identify further efficiencies that will contribute to reducing the level of future revenue requirements.  Network Rail’s wider responsibilities have also been highlighted today by the ORR.  The company has made a number of changes since the last review to ensure closer co-operation across the industry, and the importance in the future of continuing this work, putting passengers and freight customers first, is to be welcomed.