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09/05/2008
Network Rail Handed £14 Million Fine By Regulator
Network Rail have been handed a £14 million fine for overrunning engineering work.
The penalty has been imposed by the Office of Rail Regulation (ORR) for "systematic weaknesses" in NR's "planning and execution of engineering work".
ORR said that this represented a "serious breach of its licence".
NR said pending the fine imposition that the penalty was "unnecessary and excessive" and had asked ORR to allow it to spend £14m on track improvements instead, supported by Passenger Focus, train operators and others.
However, ORR said that NR deserved a "financial penalty".
ORR Chief Executive Bill Emery said: "We remain convinced that the systemic weaknesses we have found in Network Rail's approach to the planning and execution of its engineering work are a serious and continuing breach of its licence meriting a financial penalty.
"We consider that to accept Network Rail's proposal to mitigate the fine in its entirety would reduce the effectiveness of the incentive that penalties place on the company to secure compliance with its licence. We are therefore confirming the penalty of £14m."
It is reported that thousasnds of passengers faced major disruption after engineering work overran at New Year on the West Coast Main Line at Rugby in the West Midlands.
Work was also let uncompleted at Liverpool Street station in London.
ORR's decision will be set out in a formal notice shortly.
(DS)
The penalty has been imposed by the Office of Rail Regulation (ORR) for "systematic weaknesses" in NR's "planning and execution of engineering work".
ORR said that this represented a "serious breach of its licence".
NR said pending the fine imposition that the penalty was "unnecessary and excessive" and had asked ORR to allow it to spend £14m on track improvements instead, supported by Passenger Focus, train operators and others.
However, ORR said that NR deserved a "financial penalty".
ORR Chief Executive Bill Emery said: "We remain convinced that the systemic weaknesses we have found in Network Rail's approach to the planning and execution of its engineering work are a serious and continuing breach of its licence meriting a financial penalty.
"We consider that to accept Network Rail's proposal to mitigate the fine in its entirety would reduce the effectiveness of the incentive that penalties place on the company to secure compliance with its licence. We are therefore confirming the penalty of £14m."
It is reported that thousasnds of passengers faced major disruption after engineering work overran at New Year on the West Coast Main Line at Rugby in the West Midlands.
Work was also let uncompleted at Liverpool Street station in London.
ORR's decision will be set out in a formal notice shortly.
(DS)
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