In its 2013-14 efficiency and finance assessment of Network Rail, the Office of Rail Regulation points out that while the company reduced its costs of operating, maintaining and renewing the national rail infrastructure in CP4, the cumulative efficiency gains were eight percentage points below the 23.5% savings required. Because the Periodic Review process is completed during the final year of the preceding Control Period, in making its Final Determination for CP5 ORR had assumed cumulative efficiency gains of 18% by the end of CP4. With the actual gain only 15.5%, this gave a shortfall of 2.5 points compared to ORR's exit assumption in the CP5 final determination. This shortfall will have to be recovered, raising the 19.4% OMR efficiency savings commitment in CP5 to around 22%.
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