Office of Rail and Road: New streamlined guidance for third party rail investment

Rail regulator, the Office of Rail and Road (ORR)[1], has published new streamlined guidance for rail investors, to make it easier for third party investment to take place in rail infrastructure, contributing to economic growth. The regulator has published a new 'Investment Pathway'[2] guidance document to provide clearer, more accessible help to investors in navigating the regulatory framework and understanding their obligations and opportunities when investing in rail infrastructure. Separate investor guidance clarifies investment opportunities around specific forms of infrastructure.

The new guidance follows ORR's engagement with rail investors over recent months, who said they supported clearer guidance on the investment pathway and on the options for investing across different aspects of the rail network. As part of its ongoing review into the Rail Network Investment Framework, carried out at the request of HM Treasury, the regulator has also identified opportunities to reform the Industry Risk Fee and the Network Rail Fee Fund, two funds which support third party investment by providing a consistent approach to risk allocation and liability. Subject to consultation, changes could be made to contribution rates to ensure charges are updated to reflect more up to date data on risk reassessing thresholds and examining how generated interest is used.

Feras Alshaker, Director, Planning and Performance, said: "The Rail Network Investment Framework has supported over ?40bn of third-party investment into the railway since it was launched.

The changes we're announcing today are a positive step towards making it easier and simpler to invest in the rail network, supporting economic growth."

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References

^ Office of Rail and Road (ORR) (www.orr.gov.uk)
^ 'Investment Pathway' (www.orr.gov.uk)
^ Download article (news.railbusinessdaily.com)