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.
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.
Draft Determination consistent CP6 price lists
CP6 Track Usage Price List, 1718 prices (July 2018)157 Kb
This includes draft CP6 price lists for Variable Usage Charge (VUC), Freight Specific Charge (FSC), Electrification Asset Usage Charge (EAUC).
Open Access ICC, 1718 prices (July 2018)15 Kb
CP6 Managed Station Long Term Charge Price List, 1718 prices (July 2018)10 Kb
CP6 Franchised Station Long Term Charge Price List, 1718 prices (July 2018)125 Kb
CP6 Distribution System Loss Factors (July 2018)25 Kb
CP6 Fixed Charge price list, 1718 prices (August 2018)29 Kb
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.
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.
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.
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.
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.
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 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.
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.
Network Rail consultation on variable and station charges in CP6
Station charges - presentation to Rail Delivery Group317 Kb
Network Rail’s consultation on variable and station charges in CP6 (July 2017)1 Mb
Annex - Network Rail’s consultation on variable and station charges in CP6 (July 2017)3 Mb
VUC vehicles characteristics spreadsheet (July 2017)409 Kb
Traction electricity charge and electrification asset usage charge - presentation to Rail Delivery Group419 Kb
Variable usage charge - presentation to Rail Delivery Group578 Kb
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.
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.
Cost allocation report
Brockley Consulting – review of cost attribution and cost allocation approaches (March 2015)618 Kb
On 18 and 26 May 2016, Brockley Consulting presented to stakeholders the emerging findings from Network Rail’s cost allocation pilot study.
Presentation – emerging findings from Network Rail's cost allocation pilot study (May 2016)667 Kb
In June 2016, Brockley Consulting concluded the cost allocation pilot study. The paper, below, describes the modelling approach used and presents the results of this study.
Brockley Consulting – cost allocation study – modelling and results1 Mb
On 3 August 2016, ORR wrote to us to confirm their support for us continuing our cost allocation and attribution work, including extending the analysis to the national level.
Network Rail's cost allocation work – letter to Network Rail137 Kb
On 14 November 2016, Network Rail and Brockley Consulting gave an update to members of the Rail Delivery Group on progress with extending the cost allocation study to cover the whole of Great Britain.
Network Rail and Brockley Consulting cost allocation – GB roll-out – update (November 2016)640 Kb
Cost allocation GB roll-out Initial GB results and next steps (March 2017)741 Kb
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.
Network Rail responses to ORR consultations
Network Rail's response to ORR Schedule 4 and 8 consultation (January 2016)160 Kb
Network Rail's response to the ORR's letter dated 13 November 2015 inviting input into preparation for reviews of Schedules 4 and 8 of track access contracts for the PR18.
Network Rail's response to ORR call for evidence (February 2016)48 Kb
Network Rail's response to the ORR's letter dated 15 January 2016 calling for evidence from all interested parties in response to the Which? super-complaint submission to ORR concerning passenger compensation arrangements for delayed rail services.
Network Rail's response to ORR's network charges consultation (March 2016)421 Kb
Network Rail's response to the ORR's consultation issued 10 December 2015 on network charges for Control Period 6.
Network Rail's response to ORR's 2018 Periodic Review of Network Rail - initial consultation (August 2016)147 Kb
Network Rail's response to the ORR's consultation issued 18 May 2016 on its proposed priorities, objectives and approach to PR18.
Network Rail's response to ORR's PR18 working paper 1: implementing route-level regulation (September 2016)124 Kb
In June 2016 the ORR issues working papers on the implementing route-level regulation and system operation.
Network Rail's response to ORR's PR18 system operator working papers (September 2016)418 Kb
Network Rail's response to ORR's PR18 working paper 4: outputs framework (September 2016)445 Kb
Network Rail's response to ORR's PR18 working paper 5: options for the treatment of enhancements in PR18 (October 2016)99 Kb
Network Rail’s response to ORR’s consultation on changes to charges and contractual incentives (March 2017)802 Kb
Network Rail's response to ORR's fixed charges consultation (December 2017)140 Kb
Network Rail's response to ORR's PR18 working paper 8: managing change (April 2018)321 Kb
Rail Delivery Group publications
- 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.
RDG charges and incentives user guide (Phase 1, June 2014)415 Kb
This document provides an overview of the regulatory charges and incentive mechanisms used in the railway industry in Control Period 5.
RDG vision for the charges and incentives regime in the long run (Phase 1, December 2014)290 Kb
RDG set out the background to its review, the context and output of its first phase of work and how this work would be used.
ORR structure of charges letter (December 2014)107 Kb
The ORR wrote to RDG to clarify its proposed approach to its review of the structure of charges for the next periodic review (PR18) and invite comments on that proposal.
RDG response to ORR's letter on the structure of charges (February 2015)322 Kb
RDG assessment of the current charges and incentives regime (Phase 2, May 2015)997 Kb
RDG assessed the extent to which the current charges and incentives regime delivers its vision for the regime in the long run.
RDG current and potential alternative states of the world (Phase 2, May 2015)447 Kb
RDG produced a description of the environment that the charges and incentives regime currently operates within i.e. the current 'state of the world', and developed a range of potential alternative states of the world that may be relevant in the future.
Network Rail's response to ORR's TOC payment rate error letter (October 2015)56 Kb
ORR's letter dated September 2015, 'Error in CP5 Schedule 8 passenger train operator payment rates', sets out the ORR's proposal for addressing an error in the passenger train operator payment rates, made as part of the previous periodic review (PR13). This is Network Rail's response.
Network Rail's response to CMA's consultation on competition in passenger rail services (October 2015)79 Kb
On 17 July 2015 the Competition and Markets Authority (CMA) issued a consultation on competition in passenger rail services in Great Britain. This is Network Rail's response.
CMA - Network Rail response to ORR impact assessments (January 2016)45 Kb
On 31 December 2015, ORR published its impact assessments of the CMA's options for increasing on-rail competition. This is Network Rail's response.