NR ORR Improvement Notice - 29 November 2018

[whole diary]

[SandTEngineer]

http://orr.gov.uk/news-and-media/press-releases/2018/orr-takes-formal-action-against-network-rail-to-deliver-improved-performance

ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about) takes formal action against Network Rail to deliver improved performance

Passengers rely on both Network Rail and train operators to deliver performance but the role of the Office of Rail and Road (ORR) is to examine Network Rail’s contribution. As such, ORR has today taken action against Network Rail to require improvements in its capability to deliver better performance.

ORR’s half year ‘Network Rail Monitor’, covering April to mid-October 2018 and published today, shows punctuality and reliability at their lowest levels since the current five year control period began in 2014, with factors such as extreme weather and problems implementing the May 2018 timetable playing a part.

As well as ORR’s own monitoring, a series of recent independent reviews into train performance have now concluded and highlighted many areas where Network Rail, and train operators, must improve.

Evidence from these reviews indicate weaknesses specifically with both Network Rail’s approach to performance planning and its capability to recover services following incidents. ORR considers Network Rail to appear to be contravening Licence Condition 1: Network Management.

The Provisional Order issued today requires Network Rail and its Route Managing Directors to take the following urgent action to address these failings:

Step up engagement and work with train operators to review and develop actions to address the underlying causes that have led to the findings identified in the relevant reviews (referred to above);
Deliver a report to ORR by 15 February 2019, detailing how it is identifying the common underlying issues relating to performance planning and its capability to recover service from incidents on its network. We also require the report to address how Network Rail is implementing the conclusions of its report;
Provide ORR with subsequent and regular updates on progress in delivering its report. These updates may include any interim findings and representations regarding the extent to which it considers it is doing everything reasonably practicable to meet its obligations in Condition 1 in relation to its performance management capability.

Today’s Monitor also reports on Network Rail’s progress with getting ready to deliver efficiently in CP6^▸ (Control Period 6 - The five year period between 2019 and 2024), the five-year control period that starts in April 2019.

Network Rail is in a better position than it was at this point five years ago to deliver the volumes of work required and improve efficiency. In terms of where we expect the company to be it has made progress establishing a more efficient work planning system, secured better access to the network for its engineering works and recruited more maintenance staff.

However, Network Rail’s plans to make efficiency savings are less advanced than they need to be and there is more to do in the four months before CP6 starts. We will report publicly on Network Rail’s progress again in March 2019.

John Larkinson, Chief Executive, ORR said: "Today’s decision is a clear demonstration of ORR’s approach to how we will hold Network Rail to account.

"Passengers and freight customers rely on Network Rail for punctual and reliable train services and the evidence we have collected suggests to us that Network Rail is failing to take all reasonable steps to effectively manage performance and recover from incidents on its network. This is a capability issue which must be addressed urgently.

"We need to act now, rather than wait for the end of the financial year, to ensure Network Rail is ready for the start of the next control period, CP6, on 1 April 2019."

[onthecushions]

Pity someone can't issue a "Notice of Improvement" to the ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about).

OTC

[ellendune]

Economists - particularly economic regulators love their "efficiency savings".  They compare two things and find one costs less than another and therefore conclude that there must be efficiency savings to be found.  They have not determined whether the two things they were comparing are both apples or whether they were comparing apples with pairs!

Other media sources have said NR^» (Network Rail - home page) could be fined.  So someone is not efficient enough.  They have no other source of income and since they are public sector company they do not pay a dividend so that cannot be scrapped.  So they fail to reduce costs so they must do it for even less! Like making them make more bricks without giving them straw!

On another thread we read about years of backlog on vegetation management.  I don't know how many years were meant, but I suspect it was longer than the NR has been in existence and knowing BR^▸ (British Rail(ways)) I suspect it might go back to those times. So NR must now play catch of on years of back maintenance - while still cutting costs.

We know many other areas where NR is trying to deal with many years of back maintenance.  Perhaps because a previous management saddled with unreasonable demands for "efficiency savings" had thought that was where there "efficiency savings" could come from - knowing that it wouldn't become a problem until after they had retired!

This is madness. 

BT made massive efficiency savings just after it was privatised - they did this because the new digital exchange technology needed hugely less maintenance than the old mechanical exchanges. They funded the massive redundancy bill off the back of the pension fund surplus that almost every pension fund had then. Did this lead regulators and politicians into a false view that public sector organisations can always find massive "efficiency savings".

[Electric train]

CP6^▸ (Control Period 6 - The five year period between 2019 and 2024) funding has less major renewals / enhancements but is targeted more towards maintenance and maintenance type renewals.  The area I work in the Maintenance Delivery Units have had their team numbers increased, these are boots on the ground staff.

Quite where we are going to recruit the number of technically trained staff for Signalling, Electrification etc now we will no longer be able to recruit as easily in Europe who knows

[ellendune]

Quite where we are going to recruit the number of technically trained staff for Signalling, Electrification etc now we will no longer be able to recruit as easily in Europe who knows

You are not the only people with that concern!

[SandTEngineer]

I'll come back for a small fee.......

[Clan Line]

Economists - "efficiency savings". 

In any State run organisation  "effiency savings"  is just a euphemism for a "budget cut".

Other media sources have said NR^» (Network Rail - home page) could be fined. 

If NR is "fined" - a "fine" is yet another euphemism for a "budget cut"..........................

[SandTEngineer]

I've put this here but the moderators might decide to move it.  Interesting that ORR^» (Office of Rail and Road formerly Office of Rail Regulation - about) get a lot of flak as well: https://publications.parliament.uk/pa/cm201719/cmselect/cmtrans/1163/116302.htm