CP7: What You Need to Know in this Control Period
October 2, 2024
The UK main rail infrastructure owner, Network Rail, is funded by the government for the operations, maintenance and renewal of the railway in five-year cycles called control periods. Each control period lays out Network Rail’s investment priorities and activity plans.
Highlights of Control Period 6 (CP6), which ran from April 2019 to March 2024, included the replacement of London King’s Cross Station’s 40-year-old track, the rebuilding of Glasgow Queen Street Station, and the reopening of the Dartmoor Line after a 50-year closure. Control Period 7 (CP7) began in April 2024 and will run into 2029.
Here, we highlight what is planned for CP7, the objectives and delivery challenges, and what solutions are available to support the industry to meet CP7 targets.
What is CP7?
Control Period 7 (CP7) refers to the next five-year planning and funding cycle for Network Rail in Great Britain, covering the period from 1 April 2024 to 31 March 2029. During this time, Network Rail, which is responsible for managing the railway infrastructure, outlines its activities, outputs, and expenditures for maintaining, operating, and renewing the country’s rail network. Each control period is set by the Office of Rail and Road (ORR), ensuring that Network Rail delivers value for money while meeting safety, performance, and efficiency targets.
Network Rail expects to receive £45.4 billion in income during CP7 from the UK government in grants, access charges and commercial income, such as property rental. The primary challenges include addressing climate change impacts, improving service performance, and managing industry revenue amid broader rail sector reforms.
For CP7, the operator has set out priorities which fall into six themes:
- Safety – to reduce workforce and workplace injuries and deliver train accident risk recovery year-on-year
- Service delivery – to improve train service punctuality and increase freight services by 7.5% while focusing on asset maintenance and renewal activity in areas that need it most
- Efficiency – to deliver efficiencies from a £3.9 billion investment
- Customer satisfaction – to improve passenger satisfaction rates
- Sustainable growth – Network Rail aims to decrease emissions by 20.5% and increase biodiversity
- People – to improve employee engagement and development
The budget is expected to be the last for Network Rail since it is set to become part of the proposed body, Great British Railways.
Network Rail’s CP7 objectives
The KPIs for Network Rail’s CP7 are set out in the following table on page 57 of the delivery plan
These CP7 outcomes are colour-coded according to the six strategic themes. The delivery plan also includes definitions of each of these outcomes on page 58.
The challenges of delivering CP7
Network Rail identifies several risks and challenges in delivering CP7. These are:
- Inflation
The operator estimates that high inflation has eroded £1.3 billion from funding. For every 1% that inflation runs higher than the delivery plan assumes, costs will be £0.8 billion higher.
- Climate change
Network Rail expects it to become increasingly difficult to respond to extreme weather events and for railway assets to withstand extreme weather. It will spend £2.8 billion on resiliency and planned maintenance activities during CP7.
- Train performance
The delivery plan notes that predicting train performance is difficult, especially when factors such as extreme weather and industrial action are considered. Train operator service patterns and passenger numbers are also highly variable, and this creates further challenges to meeting targets.
There will be a regulatory review during the second year of CP7 (2025/26) to reset passenger train performance metrics for years three to five of CP7.
- Income
The plan states there is ‘a risk of lower levels of income (from access charges and property income) as a consequence of lower service levels and footfall than the plan currently assumes, which could be a railway specific cause or due to wider economic factors.’
- Rail reform
Around 30% of total planned CP7 efficiencies relate to Network Rail’s share of the industry savings expected from rail reform, particularly the creation of Great British Railways. A draft reform bill was published in February 2024, but Network Rail recognises the legislation will take time to pass and delays could impede the rail industry’s ability to deliver planned efficiencies.
The CP7 delivery plan includes a risk fund of £1.5 billion in England and Wales and a £0.3 billion risk fund in Scotland.
Safety, performance and efficiency in CP7
The smooth running of the railway network and the ability of Network Rail to meet safety, performance and efficiency gain targets in CP7 is reliant on multiple interdependent systems. A frequently forgotten but crucial example is railway signalling power supplies. These need to operate at 100% availability and reliability. If railway signalling power supplies fail, it can cause a catastrophic safety incident or knock out train services. To rectify this will inevitably incur high costs.
Effective monitoring and maintenance of railway signalling power supplies helps Network Rail to meet KPIs in several of its themes: safety, by reducing the risk of train and staff accidents; train service delivery, by increasing the likelihood of services running on time; efficiency, by controlling asset management costs and reducing costs for emergency remediation, and customer satisfaction, by improving service reliability.
Supplier partnerships in CP7
In CEO Andrew Haines’ introduction to Network Rail’s CP7 delivery plan, he praises the operator’s ‘extensive and valuable supply chain partners who are core to keeping Britain’s railway safe and reliable.’ Network Rail works directly with over 4,000 suppliers. Some 99% of these suppliers are based in the UK and 75% are small-to-medium-sized enterprises.
Meet your CP7 targets: introducing CableGuardian
CableGuardian can help operators meet their CP7 targets. This solution, developed by Viper Innovations, integrates insulation resistance measurement and spread spectrum time domain reflectometry (SSTDR) for continuous integrity monitoring of electrical conductors. Due to its network of monitoring devices, CableGuardian can better locate faults, saving time and reducing the need for ‘boots on ballast’.
The solution provides real-time monitoring and early fault detection in lineside power cables, with a focus on railway signalling power supplies. This helps prevent cable failure. Cable failure, if it occurs, is a major safety issue that also causes train delays and cancellations. CableGuardian can minimise disruption and contribute to the safe, reliable, and efficient railway envisioned in CP7.
How CableGuardian supports CP7
CableGuardian aligns with the key priorities outlined in the CP7 delivery plan, providing multiple benefits to rail industry professionals and engineers. For example, it:
- Enhances reliability and resilience, preventing cable failures and train delays and cancellations.
- Improves efficiency and sustainability. CableGuardian’s precise fault location capabilities streamline maintenance processes and enable proactive maintenance, eliminating downtime and cutting the need for extensive cable replacements.
- Early intervention and repair reduce waste and resource consumption by extending cable lifespan.
- Enhances safety. CableGuardian can detect potential cable failures before they escalate, preventing electrical hazards and making it safer for trackside workers. This aligns with CP7’s aim for a safer workplace.
- Supports digital transformation. The digital technologies CP7 trails are part of CableGuardian, which leverages advanced sensors and data analytics for actionable insights for proactive maintenance. Real-time data can inform decision-making and optimise resources.
- Delivers value for money. CableGuardian is a cost-effective solution that prevents expensive cable failure and reduces maintenance expenditure while extending asset lifespan.
Viper’s collaboration with Network Rail
During CP6, Viper Innovations partnered with Network Rail engineers to deliver the performance required by the passenger and freight operators to prove and refine CableGuardian’s performance with a specific focus on financial efficiency, maintenance and lifetime asset management.
CP7’s challenges are significant, especially in its focus on safety, train service delivery, efficiency and passenger satisfaction. Network Rail’s £45.4 billion investment is a critical moment in the evolution of the UK’s rail infrastructure, and it could transform the railway network, making it more responsive to the needs of passengers and freight operators.
Meeting CP7’s ambitious targets depends not just on funding but on partnerships with suppliers like Viper. For more information, read our CableGuardian Guide, review our CP7 bid support document and gain insights on how to get ready for CP7