Financial framework for PR18

Date published: 27 March 2018
Closing date: 24 April 2018

This is our third publication on the financial framework for PR18. It follows on from our first consultation (January 2017) and our update letter (December 2017).

Consultation document

Second consultation on the PR18 financial framework
Published 27 March 2018

In this document we set out our 'minded to' proposals for a number of financial issues, especially our proposal to move from RPI to CPI for the inflation indexation of track access charges (and other payment rates where we set the method of indexation) in CP6.

We note that some existing mechanisms and adjustments will not be needed in CP6, but might be revisited if Network Rail’s funding structure changed in future or if network assets were transferred out of Network Rail’s ownership, for example under concession arrangements.

We explain the key issues affecting budgetary flexibility and financial risk management for Network Rail that we will need to take account of in our PR18 draft determination and outline the approach we will use to calculate route level, and overall revenue requirements for Network Rail in CP6.

We would be interested to hear the views of stakeholders on the issues covered in this publication, either as responses to the questions we have included at the end of each chapter, or otherwise.

Consultant's report

Financial policy issues at PR18:  Advice to the ORR
Report from Europe Economics - 31 March 2017

How to respond

Respondents may like to use the proforma provided on this page to respond, but responses in other electronic forms are also welcome by the closing date of 24 April 2018.

Please send your comments to PR18@orr.gsi.gov.uk.

Publishing your response

Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the Freedom of Information Act 2000 (FOIA) or the Environmental Information Regulations 2004.

If you want information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory Code of Practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence.

In view of this it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information, we will take full account of your explanation, but cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on ORR.

We will process your personal data in accordance with the Data Protection Act (DPA) and in the majority of circumstances this will mean that your personal data will not be disclosed to third parties.

Format of responses

So that we are able to apply web standards to content on our website, we would prefer that you email us your response either in Microsoft Word format or OpenDocument Text (.odt) format.

If you do send us a PDF document, please:

  • create it from the electronic Word file (preferably using Adobe Acrobat), as opposed to an image scan, where possible; and
  • ensure that the PDF's security method is set to no security in the document properties.

December 2017 update

Update on the financial framework for PR18 pdf icon PDF, 175 Kb
Published 14 December 2017

This letter updated the information we set out in our first consultation on the financial framework for PR18, published in January 2017. It outlined several policy developments that have implications for Network Rail’s funding structure for CP6 and our route level approach to determining its revenue requirements.

January 2017 consultation document

Consultation on the financial framework for PR18 pdf icon PDF, 1,352 Kb
Published 26 January 2017