The Office of Rail and Road (ORR) has announced lower fees for third parties and investors funding or delivering work on Great Britain’s railway.
The revised rates follow an ORR review of Network Rail’s charges, which are intended to cover risks associated with third-party investment in rail infrastructure and rolling stock. The regulator said the fees could be set closer to break-even levels.
Rates reduced for nine agreement types
Fees will fall for nine of the 11 relevant industry agreement types. Under basic asset protection agreements using the Network Rail Fee Fund, the charge for straightforward, low-risk works led by a customer will drop from 5.0% to 2.4%.
For development services agreements, covering development and design work carried out by Network Rail for a customer, the fee will be reduced to 0.1% of the current charge, according to the ORR.
An independent actuarial review by the Government Actuary’s Department estimated that third parties could save between £2m and £3m a year if investment remained at 2025/26 levels.
The new rates will apply from 1 November.
Graham Richards, the ORR’s director of planning and performance, said: “These cuts to fees will have a tangible, positive impact on investment decision making into Great Britain’s rail network. This is a core example of how smart regulation can boost growth by making investment more attractive, while ensuring a good deal for the taxpayer.”