Source · Select Committees · Public Accounts Committee
Recommendation 24
24
In the first year of Control Period 6 (2019–20), Network Rail exceeded its planned efficiency...
Conclusion
In the first year of Control Period 6 (2019–20), Network Rail exceeded its planned efficiency savings; achieving £385 million compared to £316 million expected.61 The Office of Rail and Road told us that Network Rail has improved its efficiency through the development of a bottom-up business plan which routes and regions are bought into.62
Government Response
Not Addressed
HM Government
Not Addressed
6.2 Network Rail will write to the Committee in December 2021. Network Rail remain committed to delivering the committed efficiency improvements in Control Period 6, and Network Rail will continue to be held to account for doing so by the independent Office of Rail and Road. Network Rail is developing a detailed response to recommendation 6 for submission by December 2021. In this, Network Rail will further set out how it will achieve the efficiency target in Control Period 6 and address wider points raised by the Committee: • set out improvements in approach, process, incentivisation and governance for Control Period 6 delivery; • describe the efficiencies framework to track the movement of industry costs over time; • provide details of efficiency targets for the remaining years of Control Period 6; • explain the increase in the Operations, Maintenance and Renewals (OMR) efficiency target from £3.5 billion to £4 billion; and • provide further detail on the impact of the COVID-19 pandemic.