Media centre

Monday 1 Mar 2004

NETWORK RAIL STATEMENT ON PROPOSALS FOR REPROFILING FUTURE INCOME

Region & Route:

National

In accordance with the terms of the Regulator's final conclusions on the interim review of track access charges, we have now submitted our proposals to the Regulator relating to the profile of our revenues and the split between access charges and grants from the SRA.  This proposal confirms the provisional position that we outlined to the Regulator last year. If the Regulator accepts our proposal, it would result in our overall revenues in the next two years remaining broadly flat at their current level.  After this transitional period, our revenues would increase substantially, in line with the Regulator’s conclusions.  The additional borrowing required as a result of the delayed increase in our revenues would be added to our Regulatory Asset Base and reflected in our future revenues.  The certainty provided by the interim review conclusions about the amount of money available to be spent on the operation, maintenance and renewal of the network would therefore be unaffected. Under this proposal, the proportion of our income which comes from SRA grants would also increase.  However, since these grants are unconditional, this change does not affect our accountability to our customers or the Regulator. Indeed, these accountabilities have been clarified and reinforced through the interim review process and other changes. The Regulator is expected to announce his decision on 10 March