Draft conclusions on structure of charges and Schedule 8 performance regime for charter operators

Reference: ORR/013/2013
Date published: 23 August 2013
Start date: 23 August 2013
Closing date: 20 September 2013

This consultation on the structure of charges and performance regime for charter operators in control period 5 (CP5) forms part of our periodic review (PR13) of Network Rail. It sets out our draft conclusions in relation to charter operators in CP5.

These draft conclusions improve consistency between charter Track Access Agreements and those of other passenger and freight operators and will ensure that the prices charter services pay to Network Rail are more reflective of cost. On average, our analysis shows that the package we plan to implement will result in charter operators being marginally better off financially than they have been in control period 4 (CP4).

In our draft determination, we only partially concluded on matters relating to charter operators. Since then, Network Rail has concluded on its consultation on the structure of charges for charter operators, and we have held two workshops with charter operators. Taking account of this subsequent engagement, we are here publishing draft conclusions on PR13 with respect to charter operators: in particular the structure of charges and the performance regime (Schedule 8).This includes certain changes to the Schedule 8 conclusions we made in our draft determination relating to charter operators in the light of further discussion with operators and Network Rail.

Our key draft conclusions, for consultation, are as follows.

  • We will introduce benchmarks for the charter Schedule 8 regime calibrated on the basis of all delay minutes. We will introduce a menu of incident caps and access charge supplements (ACS) options, which will deliver financial neutrality of the regime if performance benchmarks are met.
  • We broadly accept Network Rail's conclusions on structure of charges , though we are still considering practicalities of implementing electric current for traction (EC4T), which we will set out in our consultation on implementing the changes to charter.
  • We will bring charter services into line with other services with respect to levying a capacity charge.

Following this consultation, we will conclude on all aspects of PR13, including those applying to charter operators, in our final determination, which we will publish on 31 October 2013. We will separately be consulting on implementing these changes to the charter track access contract in September 2013.

Consultation letter

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