ORR surrenders on ECAM

摘要

Late specification of projects in the High-Level Output Specification for Control Period 5 meant that ORR had to base its Final Determination on preliminary cost estimates for some Network Rail projects. The Enhancements Cost Adjustment Mechanism was introduced to deal with this uncertainty. Under ECAM, ORR has been assessing whether NR's cost estimate for each project is fully justified, and whether opportunities for more cost-effective delivery in line with best practice have been considered. These assessments affect NR's Regulatory Asset Base. The ECAM process sets a baseline efficient cost and a mechanistic underspend/overspend framework which would determine the value of a completed project when added to the RAB.