The Office of Rail and Road (ORR) has announced intentions to lower risk fees for third parties and investors.
Fees payable to Network Rail will be cut in order to support wider economic growth.
The ORR will lower risk fees for both third parties and investors
© Canva
Currently, Network Rail charges fees to cover risks when taking on a third-party, including private investors, either funds or delivers work on the rail network.
A new deep dive review by the ORR has found that there is significant scope to reduce fees in order to ensure the risk fee funds are set closer to the break-even level, with the regulator stating it will work with Network Rail to make targeted adjustments.
Risk fee adjustments follow the ORR’s review of the Rail Network Investment Framework (RNIF), which is carried out at the request of HM Treasury to encourage direct private investment in rail infrastructure.
Fee reductions form pat of a package of changes intended to make the framework clearer, fairer and more proportionate whilst keeping the right protections in place for both the railway and taxpayers.
The ORR is now working with Network Rail and will set out more details on how fees will be adjusted in Autumn 2026.
Graham Richards, Director, Planning and Performance, said:
We recognise the importance of third party and private investment in the railway for growth and are proud of our regulatory work to facilitate it.
Our recommendation to reduce risk fees for third parties and private investors is part of our wider work to make investing in Britain’s railway clearer, fairer and with proportionate rules to protect the industry and taxpayers.