Source · Select Committees · Transport Committee
Recommendation 10
10
Accepted in Part
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.
Government response summary AI-generated
The government partially agrees, stating that robust financial mechanisms including RNEP were already introduced, and while agreeing in principle to financial transparency, a review of financial governance is underway within Network Rail, with commitments to continue enhancing processes where necessary.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
57
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
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. Recommendation 4: We recommend that the Department commits to a 30-year rolling programme of electrification projects and sets this out in its long-term rail decarbonisation strategy.
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