Implementing the EC4T cost reconciliation

Date published: 2 October 2013
Closing date: 31 October 2013

This was a consultation on the principles of and changes to the contractual wording for the cost reconciliation (or "cost wash-up") for charges for electric current for traction (EC4T) as part of the 2013 periodic review (PR13). 

The aim of the proposed changes to the cost reconciliation formula was to better reflect tariff structure, in particular to allow EC4T delivery charges to be reconciled by electricity supply tariff area (ESTA).

The consultation consisted of a cover letter from ORR and a note prepared by Network Rail which explained the proposal for changes to the cost wash-up and included proposals for contractual wording.

We reviewed Network Rail's note and endorsed its proposed changes to the contractual wording.

Following this consultation, we will take into account stakeholders' comments as well as the decisions that we make in our final determination which we published on 31 October 2013. We will then begin the process of implementing our 2013 periodic review (PR13) determination into track access agreements. The changes will then come into effect on 1 April 2014.

Update note

In this note, Network Rail clarifies the different stages involved in charging for EC4T and provides an update on the contractual wording for the EC4T cost reconciliation, refined subsequent to the consultation. In CP5, cost reconciliation contractual wording will form part of the traction electricity rules.

Consultation letter