LONDON — The Rail Regulator, Tom Winsor, has Friday published an initial consultation document on the interim review of Network Rail’s track access charges, according to Dow Jones Newswires.
Commenting on the interim review Friday, Tom Winsor said: “This interim review is an important step towards the stabilisation of Network Rail’s financial position, ensuring that the company has the necessary resources on a long-term sustainable basis to carry on the essential core task of operation, maintenance and renewal of the railway infrastructure of which it is the custodian.
“In the last two years, Railtrack has been spending considerably more than I allowed the company in revenues in the October 2000 periodic review.
“Since October 2001, the company’s additional expenditure has been supported by Government.
“However, it is not sustainable for the company to be dependent on short-term credit facilities provided by the SRA.
“This review will tackle important questions about engineering policies, activity levels, unit costs and long-term asset strategies.
“My objective is to put in place a framework and a financial settlement which will promote efficiency and economy on the part of Network Rail by improving the level of control over expenditure and delivery of the required outputs.
“It will then be for Network Rail to meet the challenges which the settlement will present so as to deliver sustained improvements over time.
“The work I am doing on incentives must now concentrate on whether the existing incentive framework remains appropriate for Network Rail as a company limited by guarantee as opposed to an equity-financed entity, and strikes an appropriate balance in future between risk and reward.
“These decisions must be made having regard to Network Rail’s financial structure and the SRA’s budget.
The Regulator intends to complete his interim review of Network Rail’s track access charges by December 2003.