Four separate financial benefit:cost ratio studies have now concluded that electrification of the Midland and Great Western main lines would show a positive return. Table 1 (below) summarises the results of the four financial business cases, the most detailed of which were prepared by Network Rail. While DfT Rail's work has produced the lowest BCR, industry insiders report that the officials responsible agree that both schemes would represent value for money and be self-financing if added to NR's Regulatory Asset Base. However, this approach would require borrowing by NR to cover the capital expenditure and city insiders report a reluctance to lend in the current climate, even with the existing government guarantees of NR debt. NR's own studies draw on the work by the company's new Electrification Working Group which is developing the concept of high-output electrification trains.
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