Structure of the rail industry in the United Kingdom
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UK railways are run at arms-length from the government, through two government organisations, both of which have statutory powers under various Acts of Parliament (such as the Railways Act 1993, the Competition Act 1998 and the Transport Act 2000), and both of which receive Directions and Guidance from the Secretaries of State for Transport.
The two organisations share the same purpose, but have different juristictions; the two entered into a concordat in February 2002 to clarify demarcation and communications issues.
The Strategic Rail Authority (SRA) is the statutory strategic planning and coordinating body for the rail industry, and the guardian of passenger and freight interests. It determines strategy for passenger and freight train services, lets and manages franchises to operators, and enforces consumer protection franchise licence conditions. The SRA receives Statutory Guidance and directions from the Secretary of State.
The Office of the Rail Regulator (ORR) has as its principal functions to regulate Network Rail's stewardship of the national rail network infrastructure, and to negotiate and then hold train operating companies accountable to the terms of their operating licence. The Rail Regulator receives General Guidance and directions from the Secretary of State.
Network Rail, a company limited by guarantee, maintains track and signal infrastructure. It levies Track Access Charges, set by the Rail Regulator, on Train Operating Companies, and in addition receives direct grants from the government.
Train operating companies provide services to end users, including the operation of stations and freight terminals.
The future statutory framework for railways is under review, and it is notable that the SRA and the ORR have come into conflict over a number of issues, such as the relative prioritisation of upgrade work on the West Coast Main Line in January 2004. A rail industry review announced by the Transport Secretary, Andrew Darling, in January 2004, is due to report in July 2004. There is speculation that Network Rail, the not-for-profit company charged with responsibility for infrastructure, may absorb the responsibilities of the SRA, and that body may cease to exist.
References
- National Rail Trends (http://www.sra.gov.uk/publications/national_rail_trends_pubs/nrt_q3_0304/nrt_file_q3) 2003-2004 quarter three, from the Strategic Rail Authority. (Warning: PDF format)
- DfT Transport Ten Year Plan 2000 (http://www.dft.gov.uk/stellent/groups/dft_transstrat/documents/page/dft_transstrat_503944.hcsp) from the UK Government Department for Transport.
- Network Rail - Making a Fresh Start (http://www.nao.org.uk/publications/nao_reports/03-04/0304532.pdf) - National Audit Office report, 14th May 2004. (Warning: PDF format)