ORR meets 2016-17 commitments and service standards, and beats budget

The Office of Rail and Road (ORR) met 24 out of its 26 published commitments for 2016-17, according to its annual report published on June 28.

The two commitments it missed were improving its published strategic risk chapters and another related to its initial report into the roads supply chain.

In addition, the regulator also: delivered its initial review into the regulatory and policy framework covering the tram sector after the Croydon derailment in November 2016; developed a set of principles for continuous improvement for train operators using Driver Controlled Operation; and implemented a new structure of virtual route teams to facilitate route-based regulation.

It also enabled discussions between Heathrow Airport and Transport for London about access conditions for the Heathrow Spur, defended the Judicial Review application brought by Heathrow Airport on the ORR’s charging framework, and provided support to Transport for Wales on refranchising.

It met all of its service standards apart from processing all applications for new or revised train driver licences within one month of receipt of all necessary documentation (it processed 98%), and responding to 95% of enquiries and complaints within 20 days (the actual level was 94%).

The ORR underspent its budget of £31.7 million by £700,000. It spent the same on economic regulation and safety regulation as last year (£12.7m and £15.8m respectively), while its highways monitoring role cost £2.5m (£1m more than in 2015-16). Staff costs were 3% below budget due to a higher than budgeted vacancy rate, while consultancy spend was 9% below budget.

Five prosecutions over health and safety failures were concluded, including that of West Coast Railways following a Signal Passed at Danger near Wootton Bassett junction, three for Network Rail and one for London Underground.

The ORR is undertaking its Periodic Review of NR’s funding for Control Period 6, which runs from 2019 to 2024. It says its main focus will be on route level regulation and improving how it regulates NR’s system operator function. It has also confirmed its commitment to reforming fixed track access charges so that open access operators make “an appropriate contribution” to fixed costs.