Review of the basis of Network Rail's allocation of costs/recharges to the Scotland route

The backdrop for this requirement is our PR18 periodic review of Network Rail which needs to take into account: • Network Rail's reclassification as a public sector arm's length body; • a revised funding structure for the CP6 control period ; • our route level approach for PR18; and • the separate funding arrangements and periodic review determination that apply to Scotland. We wish to commission a report that sets out whether Network Rail's allocation of costs to its Scotland route (about 10% of the total) is reasonable, and consistent with best practice. The report will feed into the work of ORR's Regulatory Finance team on the financial framework for PR18. We expect to publish mind…

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