Periodic Review 2018 (PR18)

PR18 will establish our outputs and funding for Control Period 6 (CP6) – from 1 April 2019 to 31 March 2024

This page contains our publications related to access charges, including responses and conclusions for relevant consultations. It also includes our responses to Office of Rail and Road's (ORR) PR18 publications.

CP5 access charges

Indicative PR18 timeline

  • Autumn 2016 – rail industry publishes its initial industry plans.
  • Spring 2017 – ORR publishes advice to ministers and sets out requirements for Network Rail’s Strategic Business Plan.
  • Summer 2017 – Department for Transport (DfT) and Transport Scotland publish their high level output specifications (HLOS) and statements of funds available (SOFA).
  • Winter 2018 – Network Rail publishes its strategic business plan.
  • Summer 2018 – ORR publishes its draft determination.
  • Autumn 2018 – ORR publishes its final determination.
  • April 2019 – CP6 begins.

PR18 Draft Determination Response

Network Rail’s response to ORR’s PR18 Draft Determination

On 12 June 2018, ORR published its PR18 Draft Determination for the period 2019-2024. This sets out ORR’s draft conclusions on our February 2018 strategic business plan.

To find our response to ORR’s Draft Determination please:

Download our main response to ORR’s PR18 Draft Determination for an overview of the main Draft Determination response points.

There are a number of supporting documents to Network Rail’s response to ORR’s Draft Determination that can be found below.

Draft Determination consistent CP6 price lists

Draft CP6 Variable, Station & Fixed Charges price lists

Please see below draft CP6 Variable, Station & Fixed charges price lists, consistent with ORR’s draft determination. This is an opportunity for operators to work with us and resolve any potential issues now before they are finalised on 20th December 2018, following ORR’s Final Determination.

We encourage stakeholders to review these draft price lists in detail and if they identify any issues please send them to RegulatoryEconomics@networkrail.co.uk by COP 28 September 2018. Where appropriate, we will then address these issues prior to publishing final price lists on 20 December 2018. Once we publish final prices in December 2018 it will not be possible to re-open these prices until CP7 (i.e. 1 April 2024). Therefore, we strongly encourage operators to take this opportunity to work with us and resolve any potential issues now.

 

Supporting documents for Draft CP6 Variable, Station & Fixed Charges

Prior to publishing the draft price lists above our charging models were assured by Steer Davies Gleave (SDG) & Arup. Below are the consultancy report which SDG & Arup have produced.

Arup - Review of Network Rail's CP6 Variable Usage Charge Assessment (July 2018)

SDG – CP6 Access Charges Modelling Review (July 2018)

Draft Determination consistent price lists - key assumptions and forecast income (July 2018)

This note explains the assumptions underpinning the draft Variable & Station price lists and shows the forecast income we expect to receive from each charge in CP6.

Draft Determination consistent FTAC price list key assumptions and forecast income (August 2018)

This note explains the assumptions underpinning the draft CP6 FTAC price lists and shows the forecast income that we expect to receive through the charge.

Please see below the assumed vehicle characteristics which are used to calculate the draft VUC price lists. If you identify any issues please send them to RegulatoryEconomics@networkrail.co.uk by COP 28 September 2018.

20170728 VUC vehicle characteristics spreadsheet v4 (July 2018)

The purpose of the below note is to set out, in detail, Network Rail’s methodology for implementing ORR’s decision to cap the increase in Variable Usage Charges (VUCs) for freight and charter operators in CP6.

VUC capping methodology

The letter below sets out the request from Network Rail for ORR approval of the recalibration of track access charges for CP6, led by Network Rail.

Request for ORR approval of the recalibration of track access charges for CP6

Network Rail publications on PR18

Network Rail’s consultation on proposed changes to the wording of track access contracts in Control Period 6

The purpose of this consultation is to set out some proposed changes on, and seek stakeholders’ views on, the wording of ORR model contracts in relation to freight and passenger track access contracts in relation to:

  • Proposed rounding of values in Track Access Contracts (TACs)
  • Proposed replacement of references to Train Service Database (TSDB)
  • Proposed change to the track access invoicing process
  • Opportunities to reduce the use of paper invoices
  • Proposed updating of references to freight performance statements.

View the consultation document on the proposed changes.

View the responses to consultation: Proposed changes to the wording of track access contracts

View the conclusions to consultations

Network Rail’s consultation on its methodology for allocating fixed costs to train operators in Control Period 6

This consultation sets out our proposed methodology for allocating our fixed costs to train operators in Control Period 6, and seek stakeholders’ views on this approach. Our proposed methodology reflects the revised cost allocation methodology that we commissioned Brockley Consulting to develop.  Further information in relation to the review carried out by Brockley Consulting is available, below.

Network Rail's consultation on its methodology for allocating fixed costs to train operators in Control Period 6 (September 2017)

Fixed costs - presentation to Rail Delivery Group

Brockley Consulting report - A new method for allocating network fixed costs (September 2017)

Consultation conclusions

This document sets out our conclusions on our September 2017 consultation in relation to allocating our fixed costs to train operators in Control Period 6. In our consultation we proposed using the new Brockley Consulting methodology to allocate both traffic related avoidable fixed costs and minimum network fixed costs to train operators. Following careful consideration of consultation responses, we have concluded that we should allocate only traffic related avoidable fixed costs to train operators in CP6 (i.e. those fixed costs which could potentially be avoided in the long-run at lower traffic levels).

Please see below the conclusions document and associated spreadsheet.

Consultation on variable and station charges in CP6

This consultation sets out our proposed approach to recalibrating variable charges and station charges in CP6, and seeks stakeholders’ views on our approach.

We will be consulting separately on our proposed methodology for allocating fixed costs to train operators later this summer.

Consultation conclusions

This document sets out our conclusions on our July 2017 consultation in relation to Network Rail’s Variable and Station Charges in Control Period 6. Following careful consideration of consultation responses, we conclude on the following charges:

  • Variable Usage Charge
  • Electrification Asset usage Charge
  • Electric Current for Traction
  • Long Term charges for managed and franchised stations
  • Qualifying Expenditure management fee for managed stations

Please see below the conclusions document, Distribution System Loss Factor’s methodology and assumptions report and Variable Usage Charge vehicle characteristics spreadsheet.

Cost allocation

To inform our work on cost allocation and attribution, we commissioned Brockley Consulting to advise us on ways to make cost causation more transparent, improving the quality of information available to decision makers.

This report considers approaches to cost allocation for the Great Britain railway network and opportunities to refine these approaches.

ORR publications on PR18

ORR's website contains background information on the periodic review. As PR18 progresses, this page will be updated with more information on objectives, timetables, and stakeholder engagement.

On 14 July 2015, ORR held a workshop to update industry stakeholders on the approach being used to prepare for their consultation on the structure of charges in PR18.

ORR workshop – Structure of Changes workshop slides (July 2015, PDF)

Network Rail responses to ORR consultations

Rail Delivery Group publications

The Rail Delivery Group (RDG) brings together the owners of Britain's passenger train operating companies, freight operators and Network Rail with the aims of:

  • improving services and delivering better value for money
  • providing leadership
  • promoting greater co-operation
  • short and long term improvements.

RDG’s current work programme spans a number of different areas, one of which is contractual and regulatory reform. RDG’s review of charges is one element of RDG’s work in relation to contractual and regulatory reform.

RDG’s review is designed to enable the rail industry to take a fresh look at how train operators are charged to run trains on our infrastructure. It also considers how our incentives can be better aligned with train operators’ to improve industry outcomes. 

We have worked collaboratively with the rest of the industry to support RDG’s work in this area.

The outputs of RDG’s review of charges are set out on this web page. For more information about RDG and its review of charges, please visit the RDG website.