THE Office of Rail and Road has denied reports that the rail regulator is calling for Network Rail to be divided into a number of regional businesses.
The Financial Times has claimed that the ORR wants the change to improve efficiency, reduce costs and allow comparisons of performance by using benchmarking.
The report has followed signs of turmoil at Network Rail, most recently when it was revealed that the NR Board was aware that the CP5 budget was not enough to pay for the full enhancements programme well before the general election.
This revelation is set to anger politicians, because the Conservative Party manifesto had indicated that all the schemes, including Northern Transpennine and Midland Main Line electrification, were set to go ahead under a Tory Government. In reality, the NR Board was discussing modifications to the enhancement programme in private as far back as March. The minutes of the meeting have only just been published.
Top level changes have already taken place at Network Rail, where chairman Professor Richard Parry-Jones has been replaced by Sir Peter Hendy, while Richard Brown has been appointed as a special director of NR and will now report directly to the transport secretary.
Following the overnight claims from the Financial Times, the ORR told Railnews: "The Chancellor’s 2015 summer Budget included proposals to change the way government support is channelled to the rail industry and devolve more power to Network Rail’s route managers. The reforms, building on recommendations set out in our long-term regulatory framework statement in 2013, have significant potential to improve the way that the rail network operates.
“ORR's proposals focus on the way regulation of Network Rail can help underpin devolution to its eight routes, maximising the benefits of comparative regulation and ensuring a focus on the different challenges in different areas. This approach would require the creation of a more clearly defined national ‘system operator’ to deal with the network wide planning and capacity issues. While decisions on the structure of the railway are a matter for government, ORR is exploring options for a different way of regulating Network Rail, to drive up the quality of services and increase value for the railway's customers and taxpayers."