RIA response to ORR consultation on holding Network Rail to account

13 June 2023

RIA has responded to an ORR consultation on an updated version of their 'holding Network Rail to account' policy for control period 7 (CP7). The policy:

  • Sets out how ORR will hold Network Rail to account for delivery of the commitments in their PR23 final determination and the obligations in its network licence
  • Explains how ORR will monitor performance, escalate and investigate potential issues and where necessary, take enforcement action.

You can view the full RIA response below, but the key suggestions to the ORR are:

  • The Stakeholder Engagement Duty in the Licence becomes a priority for routine monitoring, with a strong emphasis on lesson learning across the whole business.  The England and Wales HLOS states specific requirements “The Secretary of State therefore expects clear evidence of Network Rail working collaboratively with its supply chain and to exercise its role as an effective and engaged client, demonstrating a commitment to being ‘open for business’.”  The onus should be on Network Rail to provide proactive assurance, at both national and regional levels, rather than ORR-initiated investigations.
  • The Network Management Duty in the Licence must be interpreted to apply to the whole system outcomes sought by Network Rail customers and funders.  In our view, the sustainability of the supply chain is an essential enabler to these outcomes, and needs to be monitored. 
  • A key part of ORR’s Routine monitoring and assessment must be looking at the health of supply chain management, relationships and progress in procurements. This can provide early warning of future problems.  It must also challenge Network Rail to demonstrate that, together with suppliers, it is learning about – and acting on - the relative effectiveness of the different approaches, and delivering on its HLOS commitments.
  • ‘Investigation and Early resolution’: when problems (e.g. efficiency) are identified it may be too late – if contracts have been let or procurements are underway, it can be difficult to change approaches for a number of years. What is needed is continuous assessment that the fundamentals of best practice are in place from the very outset of market engagements. 
  • Both regional and national level accountability are needed. Network Rail is accountable as a single entity under its licence. The national functions have a key role to play in supporting lesson learning across the business and potentially taking difficult decisions to reconcile inconsistent or inefficient approaches to market engagement between regions.