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).
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.
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.
December 2017 update
Update on the financial framework for PR18 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, 1,352 Kb
Published 26 January 2017