zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA PR18 Initial - PowerPoint PPT Presentation

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA PR18 Initial Consultation RDG Working Group 19 May 2016

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 2 PR18 Initial Consultation ■ We have published our first major document, preparing for the regulatory settlement for Network Rail. – This will likely cover the five-year period from 1 April 2019 ■ This document looks at how the context has changed, sets out our initial proposals for responding to these changes, and invites comments and ideas from stakeholders. ■ Forthcoming working papers: – Route-level regulation and system operation – Outputs – Enhancements

3 Demands on the Network zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Reclassification Digital Railway & Public Spending Context for the review Efficiency & Shaw Review Performance Political & Operational Devolution

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 4 • Support the shift towards route-level decision making Route-level • Encourages greater involvement from customers & regional funders Regulation • Greater use of comparison between routes Our proposed priorities & approach • Encourage better use of the network System Operation • Support improved capability in terms of network analysis and planning • Protect operators moving passengers and freight across route boundaries • Respond to the increased diversity of funders New ways to treat • Provide flexibility to funders enhancements • Implies some change to the periodic review to make this work • Build on industry work to improve how we measure performance Outputs & Performance • Increased route-level monitoring & transparency Monitoring • Continued protection of renewals volumes and asset condition • Improved information about what drives cost on the network Cost transparency & improved • Explore way to improve alignment of TOCs, FOCs and Network Rail incentives incentives • Incremental improvements to the performance and possessions regimes

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 5 Potential framework for the determination A 'settlement' Outputs (what is expected to be delivered in return for t he funding) Wales Revenue requirement (to operate, maintain, renew and Anglia enhance the network) Financial framework & LNE change control (including how risk is managed within the fixed borrow1ng hm1t) LNW Central system Incentives framework South East (encouraging efficiency and operator (potentially a effect1ve use of the network) separate settlement) Wessex Monitoring framework Core service activities (ORR and customer-led oversight. (approach to be Western encouraging good performance) decided QffiQ OF lltAILAHO .. OAO

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ~ ~ 6 Summary of key differences to PR13 Proposed for Proposed for PR18/CP6 PR18/CP6 Route-level re gu lation Regulation of system operator Bus in ess plans informed by Separate business plan More route-level customer (info rm ed by customer No Yes PartiaP substantial engagement engagement) Separate outputs for each rout e No Yes Yes Separate outputs No Specific fu nd i ng and RAB In dicative only 2 Yes a ll ocations Separate funding a nd RAB No Yes - Partial Incentive framework applyi ng a t Management in centives linked Pa rti aP Yes Yes route level to system operator perfo rm ance (set nationally) Transparency over resource Partial Partial Fu ll Transparency and moni to ri ng Yes transfers be tw een routes ( se t nationally) Char ges r ef lect cost at Consider Pa rti al 4 route-level scope for more Monito ri ng at route-level Partial 5 _L Yes -

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 7 How to get in touch Please subscribe to our PR18 email alerts service and you will receive our all latest news: http://eepurl.com/b1Xl5H e: PR18@orr.gsi.gov.uk w: www.orr.gov.uk/pr18