Investing in the industry

This page outlines ORR's investment framework and guidance for investing in the railway.

The consolidated policy and guidelines below set out the legislation and processes for anyone who wishes to invest in the rail industry. We previously said that we would review and revise this document. This review is now tied into our work preparing for the 2018 periodic review (PR18), which will include consideration of the investment framework and its status going forward. This may include an update of the guidelines if appropriate. There is reference to this in our initial PR18 consultation document published in May 2016 (p28).

We have updated Network Rail's rate of return in our periodic review 2013 (PR13) determination for control period 5 (CP5), which will run from 1 April 2014 to 31 March 2019. The revised rate of return for CP5 is 4.93% on an annual basis (and 4.81% on a semi-annual basis). We are reviewing the example calculation of a facility charge spreadsheet and if necessary, we will update it and publish this on this webpage.

Investment is essential to cater for the growth in demand for both passenger and freight services. An effective framework for delivering infrastructure investments such as increasing track capacity or building new stations is required.

We have a role in making sure the investment infrastructures are in place, and once agreed, projects are delivered on time and budget.

Schemes are proposed by train operators, other rail users (in particular users of freight services) or funders of rail services. Others are identified by Network Rail in its role of managing the long term planning process for the railway network.

Network Rail also takes the lead in promoting, planning, facilitating and, in most cases, delivering and financing schemes.

Current investment framework policy and guidance

Further information