The periodic review of Railtrack’s access charges : incremental outputs technical consultation

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date 4 August 2000
source Office of the Rail Regulator
type Press release

note ORR/00/25

Faced with Railtrack's failure to make an appreciable reduction in the number of broken rails on the network, the Rail Regulator, Tom Winsor has warned Railtrack that he regards this as prima facie evidence of a breach of condition 7 of its network licence. This condition requires Railtrack to maintain the network in accordance with best practice and in a timely and efficient manner, so as to satisfy the reasonable requirements of funders and operators.

The Regulator has told Gerald Corbett, Railtrack's Chief Executive, that the frequency with which Railtrack has adjusted its own broken rail targets at a time when its rail management initiatives should have been delivering better results is a cause for serious concern.

Tom Winsor told Railtrack's Chief Executive that he was:

"......not satisfied that Railtrack is taking all appropriate steps to secure or facilitate compliance with its network licence in this and subsequent years. I therefore intend to appoint independent specialist consultants to examine the issues raised by the incidence of broken rails and to advise what are the appropriate steps for Railtrack to take to improve its performance and to meet its licence obligations."

Writing to the Chief Executive in June this year, the Rail Regulator told Railtrack that he had two major concerns. First, the number of broken rails has increased to a total of 917 for 1999/2000 and 952 for the previous year, which reflects a substantial increase compared with the number in 1997/1998, 755. Secondly, Railtrack has failed to meet its own forecasts on the number of broken rails.

Accordingly, the Regulator will now appoint a firm of consultants to oversee and report to the Regulator on Railtrack's forecasting and effectiveness in reducing the incidence of broken rails to the lowest reasonably practicable level. The Regulator expects to have Railtrack's full co-operation with this technical assessment, and the name of the consultants selected for the task will be announced shortly.

Notes for editors:

Copies of the following are available:

1. Letter of 4 August 2000 from the Rail Regulator to the Chief Executive of Railtrack. [[related document 1]]

2. Letter of 21 July 2000 from the Director, Operations of Railtrack to the Rail Regulator.

3. Letter of 30 June 2000 from the Rail Regulator to the Chief Executive of Railtrack.

4. Press notice ORR/99/50 of 12 November 1999 - 'Rail Regulator questions Railtrack's asset management over broken rails.' [[related document 2]]

Railhub Archive ::: 2000-08-04 ORR-001