THE Office of Rail Regulation's planning for Network Rail's next funding period has been put on hold, because of widespread uncertainties about future government spending.

The ORR has revealed that its work on the new Periodic Review, which is the basis for the five-year Control Period 5 starting in 2014, is being postponed for six months.

Such a delay could also affect Network Rail’s longer term planning, because even draft budgets cannot be drawn up without some input about CP5 from the ORR.

The schemes which may now be facing new problems, at least at the planning stage, include electrification as well as station modernisations.

The ORR would have begun its research and calculations next month, but now the work will not start until ‘early summer 2011’.

The ORR said this was so that the Department for Transport’s strategic reviews on Network Rail’s structure and on franchising, and Sir Roy McNulty’s value for money study, could be taken into account.

The ORR is hoping to catch up with its original deadline for finalising CP5, in October 2013, by working faster.

ORR chief executive Bill Emery, who is stepping down from the post next June, said: “A periodic review sets out a plan for the future of Britain’s railways. Decisions taken as part of this process have far-reaching implications for the rail industry, passengers and taxpayers.
 
“The delay to the next periodic review will allow us to fully consider Sir Roy McNulty’s value for money recommendations, together with the decisions made on the future structure of the industry and franchising.
 
“This delay will not prevent us from delivering final periodic review determinations by October 2013.”

Network Rail has yet to comment on the announcement.