Track Access Agreement Orr

Franchise authorities are also responsible for the definition of franchises and, as a counterpart to franchise agreements, are closely associated with the management of franchise delivery. Although the Secretary of State for Transport is the Franchising Authority for England and Wales, its role as counterpart to the Wales franchise agreement and future edges has been entrusted to the Welsh Government. The Office of Rail and Road (ORR) was created as part of the Railway and Transportation Safety Act 2003 and its powers and obligations are defined in the RA93. It is responsible for the public interest and economic regulation of Network Rail and (to a lesser extent) OCDs and FOCs. It is also responsible for the competition regime and the regulation of access to railway facilities (roads, stations and depots). In carrying out its duties, the RSO must perform its general duties under Section 4 of the RA93, which include promoting railway performance improvement and promoting the use of the railways. Almost all passenger trains on the national rail network are operated by operators who have a franchise agreement. The ORR has calculated that non-franchise operators (open access operators) travel only 1% of rail miles in the UK. Currently, the ORR only allows access rights for a new open access operator if the new service completes the “non-primarily abstract test.” To pass the test, the new service must offer additional benefits to passengers, in addition to the benefits offered by the franchised services with which it will compete, measured as a relationship between new revenues generated by open access and revenues, which are 0.3 to 1 by the franchisee. At the same time, the ORR requires (unlike franchise operators) that open access operators pay variable route access charges for short-term costs and do not pay fixed connection fees. You will find a complete list of the consolidated agreements we have with our existing customers on the ORR website. As noted in Question 4, there is a regular verification procedure in which the ORR verifies and sets fees for access to Rail network tracks, which is informed and supported by the level of public assistance provided by Network Rail.

This process is guided by the Railway Act 2005. There are also financial management rules established in a 2014 framework agreement between Network Rail and the Secretary of State for Transport. The Secretary of State for Transportation provides grants to Network Rail and has a role to play in setting priorities. In 2014, there is also a framework agreement between Network Rail and the Secretary of State for Transport, which deals, among other things, with governance and financial management. The ORR stated in June 2018 that “a key element of our reforms to access rates for passenger services has allowed for increased competition in the provision of these services (on rail). Changes in the regulatory approach that may lead to adaptations of the “non-essentially abstract test,” offset by a greater contribution from operators of open access to Network Rail`s fixed costs.