ORR issues guidance on Network Rail business plans

The Office of Rail and Road (ORR) has issued guidance on Network Rail’s strategic business plans for Control Period 6 (CP6) and beyond, as part of the regulator’s Periodic Review 2018 process.

Each of NR’s geographical routes will prepare its own strategic plan, while there will be similar plans for the Freight and National Passenger Operator route, for the National System Operator and for NR’s central functions. NR will then need to provide a consolidated strategic business plan (SBP) for England and Wales and one for Scotland, in addition to some nationwide data.

Each SBP will set out plans for operating, maintaining and renewing the network, and how NR intends to improve its capability and efficiency.

The ORR says each plan should contain forecasts of expenditure and income, the outputs it expects to deliver, and its assessment of the revenue it requires. This will allow the ORR to assess whether its plans are consistent with governmental requirements, whether there is sufficient funding available, and whether the plans are consistent with safe and sustainable management of the network.

The guidance aims to improve transparency, quality and accountability by setting out the ORR’s expectations in advance, as well as increasing train operator, end users’ and other stakeholders’ engagement in the SBPs.

The ORR also expects it to ensure that the strategic plans support comparison between routes, improving its scrutiny during the Periodic Review process and providing a “strong basis for monitoring” during CP6 (2019-24).