CP7 funding objectives published

[stuving]

* Renewal of the 11kv DC cables on Euston-Watford DC network traction supply

11 kV DC? What's that about?

 

[jw]

11 kV DC? What's that about?

That's not for direct supply to the trains, but rather one of the intermediate stages between the supply from the national grid and the end conversion to 750v DC.

 

[Elecman]

11 kV DC? What's that about?

11kV AC Distribution cables from Acton Lane feeder

 

[Sm5]

Its still going to need to be sorted out though. Diesel will become even more expensive if its not needed for cars anymore such that economies of scale reduce producing, refining etc the stuff.

We might be reducing diesel, but the rest of the world ploughs on.
No shortage of diesel in China, India, South America, certainly not in the US.

i’m sure our reduction wont even be noticed at the refinery.

 

[snowball]

We might be reducing diesel, but the rest of the world ploughs on.
No shortage of diesel in China, India, South America, certainly not in the US.

i’m sure our reduction wont even be noticed at the refinery.

India has a vast and rapid electrification programme which dwarfs that of the UK.
Last I heard, it was planning to complete the electrification of its broad gauge network by the end of this year.
However, it needs to turn its attention to greening how the power is generated.

 

[Bald Rick]

However, it needs to turn its attention to greening how the power is generated.

India already has done. It has committed to 500GW of installed renewable capacity by the end of the decade, which is roughly a doubling in 10 years. To put it into context, in just the last year India brought on line 26GW solar, that‘s roughly twice what we have in this country.

 

[WatcherZero]

India currently has 416GW of which 45.7 GW is hydroelectric, 120GW is Solar and approx 266GW is fossil fuel including 75% of the power in the most populous states and it is currently building another 32GW of coal (Five year freeze on new coal approvals but existing projects continuing).
Over the last 3 years Indias electricity capacity has increased by 22% of which 75% (16.6%) came from coal, in the year to date after years of growth renewable capacity in India has declined by 1.4% due to the rush to coal and influx of cheap Russian oil.

Their announced goal is to reach 500GW capacity from renewables by 2030 of which 280GW is Solar and 140GW is wind

 

[tomuk]

India already has done. It has committed to 500GW of installed renewable capacity by the end of the decade, which is roughly a doubling in 10 years. To put it into context, in just the last year India brought on line 26GW solar, that‘s roughly twice what we have in this country.

India has a population 21 times the UK and is 12 times the size. Why wouldn't they have more generating capacity of any type than the UK. It isn't a valid comparison. The correct comparison is to look at the relative carbon intensity of their grid
UK 268 gCO₂e per kWh
India 637 gCO₂e per kWh
So India's grid 2.4 times more polluting in CO2 terms than ours.

Overall the Carbon footprint of India is currently half of the UK about 2t per person compared to 4t but that reflects Indias lower level of development overall. It should be noted however that whereas we have reduced our emissions by getting on for half in the last 20 years India has doubled theirs per capita.

 

[D365]

It's interesting how NR are getting a not appalling offer, but the TOCs are going to get potentially a dire time of it (and in many ways already are). Equally strange when it's all the same money effectively anyway.

Network Rail has to spend the same money, whether or not the trains are running.

General maintenance shouldn't be a selling point of a control period.

The funding for general maintenance is defined in these control periods.

 

[Islineclear3_1]

Of interest to me:

Renewal of safety critical areas of East Kent: What does this mean (specifically)?

Arundel, Ford and Littlehampton renewal: Is this like-for like replacement? Why not Bognor Regis?

 

[Nicholas Lewis]

Slightly surprised to see there will be no high output track renewals in CP6. Wasn't that supposed to be a more efficient way of working?

According to RMT NR are removing 500 positions from track renewals service which look after high output systems. Noticed it all look idled when i past Taunton recently. High Output is 300m+ investments in the equipment plus a big supply chain to feed it. At least it got well used for many years unlike the HO electrification plant.

https://www.rmt.org.uk/news/rmt-slams-network-rall-job-cuts-in-track-renewals/

 

[Snow1964]

Stock Exchange Release
£43.1bn CP7 final determination

LONDON, UK: The Office of Rail and Road (ORR) has today set out its Final Determination of Network Rail’s five-year, £43.1bn (£38.5bn in England and Wales, £4.6bn in Scotland) plans to deliver a safe and customer-focussed railway. The plans cover the five years from 1 April 2024, known as Control Period 7 (CP7).

Since the ORR’s draft determination in June, Network Rail has revised its plans, responding positively to ORR’s challenge in a number of areas.

This includes Network Rail increasing spending on core railway infrastructure by approximately £600 million to bolster asset sustainability, safety and performance. Network Rail has also agreed with the ORR’s proposal to focus on a variant of its plan which releases more funding for risk.

ORR’s decisions are set out in its final determination. The key points are:

Outcomes with a focus on train performance

ORR’s final determination sets specific train performance requirements that protect the interests of passengers and freight. The targets are more challenging than originally proposed by Network Rail but are realistic. Meeting these targets will require Network Rail to work with operators to ensure that cancellations are reduced and that trains run more punctually across Great Britain, as passenger numbers return following the pandemic.

ORR recognises the current challenges to accurately forecasting train performance and for this control period only, will reassess passenger train performance trajectories for England & Wales in advance of year three of CP7. This two year window creates an opportunity for train companies to work with Network Rail to better align planning processes.

ORR has set appropriately challenging trajectories for what Network Rail delivers for freight operators. Network Rail will be required to reduce freight cancellations from current levels and ORR has set a freight growth target at 7.5% for England and Wales and 8.7% for Scotland. ORR supports Network Rail’s plans to upgrade its structures to better support freight. ORR is also continuing to cap track access charges for freight operators below cost.


Renewing the railway

ORR welcomes Network Rail’s increase in spending on renewing core assets (such as track, structures and earthworks) by approximately £600 million (for the GB network). This addresses our concerns from the draft determination and we consider that Network Rail has a suitable framework to understand and manage the change in risk from carrying out fewer renewals and a move to greater maintenance of existing assets.

Managing risks effectively

Significant uncertainty has shaped the development of Network Rail’s plans and our review of them. For example, inflation has increased the financial challenges in the plan and climate change presents further uncertainty.

ORR requires Network Rail to maintain sufficient and well-managed levels of risk funding and therefore welcomes the company’s agreement to focus on a variant of its plan which releases funding for risk. For England & Wales, we conclude that Network Rail should retain provisions for risk funding of £1.5 billion. For Scotland, our final assessment is that there is room within the budget for a risk fund of £225 million.

Delivering value for money

ORR recognises the tight fiscal context in which Network Rail’s plans have been developed. It is therefore vital that Network Rail continues to build on the success of recent efficiency initiatives, to help secure a financially sustainable railway and deliver value for money for passengers, users and funders of the railway.

ORR has carefully reviewed Network Rail’s efficiency targets for the next five years and, drawing on a range of evidence, found these to be stretching but achievable. This would see Network Rail deliver at least £3.2 billion in England & Wales and £0.4 billion of efficiencies in Scotland.

Protecting the environment

As part of Network Rail’s commitment to moving towards a low emissions railway, ORR will hold it to account for delivering a more than 20% reduction in Network Rail related emissions. ORR has also set a biodiversity improvement trajectory of 4.2%, which measures Network Rail’s efforts to conserve and enhance biodiversity.

Will Godfrey, Director, Economics, Finance and Markets at ORR said: “Our final determination sets out a stretching and pragmatic way forward for Britain’s rail network over the next five years.

ORR approves £43.1bn to deliver a safe and customer focused railway - NewsnReleases

LONDON, UK: The Office of Rail and Road (ORR) has today set out its Final Determination of Network Rail's five-year, £43.1bn (£38.5bn in England and Wales,

newsnreleases.com

 

[Nicholas Lewis]

Stock Exchange Release
£43.1bn CP7 final determination

ORR approves £43.1bn to deliver a safe and customer focused railway - NewsnReleases

LONDON, UK: The Office of Rail and Road (ORR) has today set out its Final Determination of Network Rail's five-year, £43.1bn (£38.5bn in England and Wales,

newsnreleases.com

So 8B/yr on running the network doesn't leave much for enhancements

 

[Dr Hoo]

So 8B/yr on running the network doesn't leave much for enhancements

I had understood that the Period Review/ High Level Output Statement/Statement Of Funds Available process was only about operations, maintenance and renewal.

Enhancements are handled entirely separately.

 

[Clarence Yard]

By the Government/Devolved Administrations deciding what to fund, in line with their usual funding procedures. Enhancements are not done through the ORR Periodic Review process anymore.

 

[snowball]

There's also a press release about it on the Network Rail website.

 

[Nicholas Lewis]

I had understood that the Period Review/ High Level Output Statement/Statement Of Funds Available process was only about operations, maintenance and renewal.

Enhancements are handled entirely separately.

Yup understand that just making an observation that DfT wont have much left in the kitty by the time they've paid out for NR OMR, TOC subsidy and HS2. Given the RNEP is nearly four years stale now is evidence that Enhancements don't have the priority they once did. Anyhow good that at least sustaining todays railway is funded for another five years.

 

[Class 170101]

Yup understand that just making an observation that DfT wont have much left in the kitty by the time they've paid out for NR OMR, TOC subsidy and HS2. Given the RNEP is nearly four years stale now is evidence that Enhancements don't have the priority they once did. Anyhow good that at least sustaining todays railway is funded for another five years.

Though some don't think it is enough, given the works and renewals being removed, it seems it might not be enough.