The Office of Rail and Road (ORR) has recommended changes to Network Rail’s charging arrangements that could reduce the costs faced by private investors and third-party organisations seeking to fund or deliver projects on the railway.
The move follows a detailed review of the Rail Network Investment Framework (RNIF), commissioned by HM Treasury as part of wider efforts to attract greater levels of private capital into UK rail infrastructure.
Network Rail currently applies risk fees when third parties, including private developers and investors, undertake work on the rail network. These fees are designed to cover the risks Network Rail assumes when external organisations deliver or fund projects that interface with operational railway infrastructure.
However, ORR’s review found there is scope to reduce some of these fees, concluding that risk fee funds could be set closer to a break-even level while still maintaining appropriate protection for both the railway and taxpayers.
The regulator believes the changes would help create a more proportionate and transparent investment environment, removing potential barriers for organisations considering rail-related development and infrastructure schemes.
The proposed adjustments form part of a broader package of reforms aimed at making the Rail Network Investment Framework easier to understand and more attractive to investors without compromising safety, operational performance or public value.
ORR said the review identified opportunities to improve clarity around how risk fees are calculated and applied, helping to provide greater certainty for private sector organisations considering investment opportunities across the rail network.
The regulator will now work closely with Network Rail to develop the detailed changes, with a full update on revised charging arrangements expected in autumn 2026.
The recommendations come at a time when the rail industry is increasingly exploring alternative funding models to support infrastructure upgrades, station developments, freight enhancements and regeneration projects linked to rail connectivity.
Private investment is expected to play an increasingly important role in helping deliver growth, particularly as government seeks to unlock new infrastructure projects while maintaining value for taxpayers.
For developers and investors, the proposed reduction in risk fees could improve the commercial viability of schemes that require access to or integration with the rail network. This includes station developments, housing projects adjacent to railway infrastructure, freight facilities and wider transport-led regeneration initiatives.
The review also aligns with broader government ambitions to stimulate economic growth through infrastructure investment while encouraging greater collaboration between public and private sector partners.
Graham Richards, ORR’s Director of Planning and Performance, said attracting third-party investment remains an important objective for both the regulator and the wider industry.
“We recognise the importance of third-party and private investment in the railway for growth and are proud of our regulatory work to facilitate it,” he said.
“Our recommendation to reduce risk fees for third parties and private investors is part of our wider work to make investing in Britain’s railway clearer, fairer and with proportionate rules to protect the industry and taxpayers.”
While the precise scale of the reductions has yet to be confirmed, the announcement is likely to be welcomed by organisations involved in rail infrastructure delivery, property development and transport investment, many of whom have argued that simplifying processes and reducing costs will be essential to unlocking greater levels of private sector participation.
The outcome of the review could also provide an important foundation for future investment models as the railway transitions towards Great British Railways and seeks to attract new sources of funding to support long-term network development.
