Source · Select Committees · Transport Committee
Recommendation 10
10
Paragraph: 57
We recommend that the Department implements an enhanced financial mechanism beyond that contained in the...
Recommendation
We recommend that the Department implements an enhanced financial mechanism beyond that contained in the Rail Network Enhancement Pipeline process. That enhanced financial mechanism must be designed to ensure that strict transparency and adherence to cost discipline are maintained in any electrification programme.
Paragraph Reference:
57
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.