A Provisional Order issued by the ORR comes after its latest Network Rail Monitor report showed that service punctuality and reliability have now hit their lowest levels since the start of Control Period 5 in 2014.

Also of concern is evidence of ‘systemic failings’, including in particular Network Rail’s approach to performance planning and its capability to recover services following incidents on the network. As a result, the ORR says the company appears to be contravening the ‘network management’ condition of its licence.

“Passengers and freight customers rely on Network Rail for punctual and reliable train services and the evidence we have collected suggests to us that Network Rail is failing to take all reasonable steps to effectively manage performance and recover from incidents on its network,” said ORR chief executive John Larkinson.

“This is a capability issue which must be addressed urgently. We need to act now, rather than wait for the end of the financial year, to ensure Network Rail is ready for the start of the next control period, CP6, on 1 April 2019.”

Results from the Network Rail Monitor report, covering April to mid-October, show that the percentage of trains arriving at their terminating station ‘on time’, having called at all timetabled stations, fell to 85.6% in England and Wales. This is close to 3% down on last year and 6.9% below the regulatory targets set in 2014.

Meanwhile the percentage of services experiencing cancellations or significant delays increased to 4.7%, and Network Rail was deemed to be responsible for on average 59% of delay minutes to services.

Adverse weather, serious problems implementing new timetables and industrial action are all acknowledged to have contributed to the poor level of performance.

Performance in Scotland was slightly better but still adrift of target, with 87.5% of services on franchises let by the Scottish Government completing punctually and reliably – 3.6% worse than at the same time last year. Data from England, Wales and Scotland also shows an increase in delay per incident.

The Monitor report adds that Network Rail is in a better position than it was five years ago to deliver efficiently the volumes of work required for the next control period. But despite this efficiency plans are less advanced than they need to be with just four months before CP6 starts, it says.

The ORR’s Provisional Order to Network Rail requires the organisation to take a number of actions. These include stepping up engagement and work alongside train operators to address the underlying causes of identified shortcomings, and delivering a report to ORR in February detailing how it is identifying issues relating to performance planning and incident recovery.

 Network Rail chief executive Andrew Haines said: “We know that train performance has not been what our passengers deserve. We have let them down and we take responsibility for the part we have played in poor train service reliability.

“Network Rail is fully committed to leading the industry back to higher levels of performance both through our own measures and actions and by working closely with our industry partners." 

Photograph: Network Rail