I don't sign any diesels so until one of the other drivers who do ill try to answer. it's basically engine rpms. In more modern DMUs I believe the computer controls the power demand and only applies full engine power when the appropriate speed is reached - which is why a turbostar doesn't roar away from a stand like a 156 for example.
It is indeed the engine speed that is controlled when the power handle is opened.
On a modern loco such as a Class 60 it is done electronically and the power handle on a 60 is actually a "potentiometer", or "dimmer switch" as my Instructor on them was fond of telling us!
On an older diesel, right up to Class 58, the power handle controls a flow of what is known as "regulating air" which flows to a "Woodward Governor", which regulates a flow of "Control Air" that opens and closes the fuel racks on the engine. The regulating air escaping is the hissing sound that is heard when the power handle is eased down and closed on an older diesel.
Of course, all this is in it's rawest form and there's a lot more bits and bobs and doin's that do different things, but i would have to dig out all my old traction manuals and MP12 paperwork from wherever they are to provide more detail. I think i got regulating air and control air the right way round, i was always getting mixed up between the two even back then!
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Kneedown, as you will probably gather from my username, I may have been hoping for different answer

. That said having been raised on a diet of Duff and Peak still a result!
Grids were probably the most intimidating machine I ever saw up close. It is good to know they were enjoyed by those who drove them too!
Not intended as a slight against Spoon's, only that out of the 2, from my experience, Peaks had the edge and i count myself fortunate that i had a couple of years working on them before 106 finally went "pop" in 1989. I still remember my last job on it as a Secondman, Sunday relief to Pancras and back and the Driver let me have it all the way. Big smiles!!! A week after that i was off to Toton to fill a Driving vacancy.
That's another big difference between BR and nowadays. Back then most depots had Secondmen or "Drivers Assistants", and it was unofficially acceptable for the Driver to work a train one way, and the Secondman to bring it back to gain experience. Most of us knew how to drive many different types of train before we even went on the Driving, or MP12 course. Apart from the fact there are no Secondmen these days, it would be a big no no, and the only time a trainee is allowed at the controls is under the direct supervision of a Mentor, Instructor or Driver Manager carrying out an assessment.
Grids were awesome machines and i still miss driving them to this day. As i did MP12 at Toton they were my basic traction and i still remember the sweat and confused looks as we worked our way through each and every air, fuel, oil, coolant, hydrostatic and electrical system on them whilst in the classroom, right down to the firing order of all 16 cylinders.
The reward was reaped the first time i opened one up with a 2000ton MGR train behind. I still remember that job too. 56020 in BR blue, Toton - Bentinck Colliery - Ratcliffe Power Sta - Toton with 42 HAA's. Big smiles again!!!