Consultation on our approach for assessing Network Rail's efficiency and wider financial performance in CP6
Date published: 31 January 2018
Closing date: 14 March 2018
We are setting out an agenda for substantial change to our approach for assessing Network Rail's efficiency and financial performance in control period 6 (CP6). We are seeking views on these matters.
We welcome comments, in particular, on the questions below.
- Do you agree with our priorities set out above? In particular, move away from technically precise measures to a more rounded assessment and making our assessments more forward-looking?
- We propose to improve our assessment and reporting of Network Rail’s efficiency improvements, drawing on unit costs, cost drivers, productivity measures, leading indicators and safety reports. What are your views about this change of approach?
- Our proposed approach will require Network Rail to provide better information to us. We consider that this is information that the company should already have. However, we want to ensure that any additional reporting is proportionate. Do you have any comments on this?
- Do you agree that having a better understanding of unit cost changes and cost drivers should be an important part of our analysis? Should Network Rail improve the robustness of its unit cost reporting if necessary to support this?
- Changes in expenditure due to a deferral or acceleration of work can have a material effect on our assessments. This is technically challenging and requires judgement. We are interested in respondents’ views on this.
- Section 4 sets out some productivity measures and leading indicators that we could assess. How effective do you think these measures could be to aid our assessments? What other measures should we use?
- Do we have the right level and frequency of reporting through our biannual Network Rail Monitor and annual efficiency and finance assessment publications?
- How can we improve the presentation of our assessments to improve their effectiveness for stakeholder engagement and challenge?
How to respond
We would welcome your views on this consultation by 14 March 2018. Please submit your responses, in electronic form, to our PR18 inbox: email@example.com.