Source · Select Committees · Transport Committee
Recommendation 9
9
Paragraph: 56
We understand that rail electrification project costs are monitored by the Department and Network Rail...
Conclusion
We understand that rail electrification project costs are monitored by the Department and Network Rail as part of the Rail Network Enhancements Pipeline process. Any overspend would be flagged by that process. The financial failures of previous electrification programmes caused work to cease. It is vital that the future electrification programmes are subject to a new cost discipline, with robust and rigorous financial controls that enable electrification to be successfully delivered to budget.
Paragraph Reference:
56
Government Response
Acknowledged
HM Government
Acknowledged
The Government partially agrees with this recommendation. After the cost challenges that we experienced with previous electrification schemes in Network Rail’s Control Period 5, we introduced more robust financial mechanisms, including the Rail Network Enhancement Pipeline (RNEP) process, to ensure that, as far as is possible, future rail enhancement schemes are developed in a way that is affordable and represent value for money. In principle, we agree with the need for financial transparency as much as possible, but this must also be balanced with any commercial sensitivity implications. A review of financial governance mechanisms for rail enhancements is already underway within Network Rail. Where necessary, we will continue to enhance our financial governance processes to provide reassurance that lessons from previous electrification schemes have been learned.