Recommendation 6

It is not clear to us how Network Rail expects to achieve the remaining efficiencies planned in Control Period 6. In Control Period 5 (2014–15 to 2018–19), Network Rail failed to achieve its efficiencies target as agreed with the Office of Rail and Road (ORR). In the first two years of Control Period 6 (2019–20 and 2020–21), Network Rail has made progress and is ahead of its target on efficiencies. A set of indicators developed with the ORR will hopefully improve governance and understanding of the likelihood of efficiencies in Control Period 6 being met. Management data has also improved, and Network Rail better understands differences in efficiencies between its operating regions. However, the scale of the efficiencies challenge is increasing, and Network Rail recognises that there is still a mountain to climb to achieve the £4 billion efficiencies target set for Control Period 6. Network Rail will need to continue to increase savings year on year. However, Network Rail is vague on its plans for efficiencies and seems heavily reliant on achieving remaining efficiency savings in Control Period 6 through infrastructure renewals activities. Recommendation: Network Rail should write to the Committee by December to set out its efficiencies plan for the remainder of Control Period 6, how exactly it plans to achieve the £3 billion of efficiencies remaining, and how the efficiencies process is governed, monitored and incentivised. 8 Overview of the English rail system 1 Rail system recovery and reform