Model connection contract – Transitioning to CPI

Date published: 6 February 2019
Closing date: 6 March 2019

Consultation to change ORR’s model connection contract. Our model connection contract sets out the rights and obligations of parties for the ongoing operation and maintenance (including renewal) of connections between railway networks. Our model is only designed for connections to Network Rail network.

As part of the 2018 periodic review (PR18) we said that we would use the Consumer Price Index (CPI) for Network Rail’s track access contracts in CP6 (2019-24). We recognise that CPI is a better and more robust measure of inflation than the previously used Retail Price Index (RPI). Connection contracts are outside of the PR18 process and therefore are not automatically updated as a consequence of our PR18 Determination. However there is an established link between the Determination and efficiencies expected of Network Rail through the adjustment factor in the model connection contract. This allows charges for the connection to be increased by inflation but less an amount determined by ORR as the efficiency factor.

We consider it appropriate to amend the model connection contract so that CPI is used for new contracts, rather than RPI in the adjustment factor, as with track access contracts. For CP6 we will set an efficiency factor for these contracts that would minimise differences between contracts using either CPI or RPI. From CP7, the intention is that we would only calculate the efficiency factor assuming that CPI is the only inflation measure used. Parties with existing contracts would therefore have CP6 to modify their contracts, if they wished to. We are inviting views on this proposal.

Responding to this consultation

Please send your response by 6 March 2019 by email to: Track.access@orr.gov.uk.

Publishing your response

We plan to publish all responses to this consultation on our website. This may include your personal data such as your name and job title.

Should you wish any information that you provide, including personal data, to be treated as confidential, please be aware that this may be subject to publication, or release to other parties or to disclosure, in accordance with the access to information regimes. These regimes are primarily the Freedom of Information Act 2000 (FOIA), the General Data Protection Regulation (GDPR,) the Data Protection Act 2018 (DPA) and the Environmental Information Regulations 2004.

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, if you are seeking confidentiality for information you are providing, please explain why. If we receive a request for disclosure of the information, we will take full account of your explanation, but we 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.

If you are seeking to make a response in confidence, we would also be grateful if you would annex any confidential information, or provide a non-confidential summary, so that we can publish the non-confidential aspects of your response.

Any personal data you provide to us will be used for the purposes of this consultation and will be handled in accordance with our privacy notice which sets out how we comply with the General Data Protection Regulation and Data Protection Act 2018.

Consent

In responding to this consultation you consent to us:

  • handling your personal data for the purposes of this consultation;
  • publishing your response on our website (unless you have indicated to us that you wish for your response to be treated as confidential as set out above.)

Your consent to either of the above can be withdrawn at any time. Further information about how we handle your personal data and your rights is set out in our privacy notice.

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.

Consultation letter

ORR model connection contract – switching to CPI pdf icon PDF, 294 Kb
6 February 2019