Licensing 
 
Railway Markets and Economics 
 
E-mail: 
 licensing.enquiries@orr.gsi.gov.uk 
1 February 
 2019 
 
To holders of: 
 
Train operator licences 
 
Station operator licences 
 
Light Maintenance Depot operator licences 
 
Network operator licences 
 
and 
 
Rail Safety and Standards Board 
 
Rail Delivery Group 
 

## Changes To Licence Conditions On Safety And Standards Orr Logo

In connection with our 
 2018 
 periodic review of Network Rail's outputs and funding, we have consulted on the changes we propose to make to Network Rail's network licence at the start of 
 
control period 
 6 
 ("CP6"), on 
 1 
 April 
 2019. 

 Some of the conditions we are changing also appear in licences for operators of trains1, stations, light maintenance depots and other networks. 

 I 
 am 
 
writing to you regarding consequential changes that we propose to make in those licences at the 
 
start of CP6. 

 There are some other consequential changes that we do not need to implement 
 
now, but we may propose to do so at a later date. 

 
Condition 
 22 
 (Safety and standards) 
 of Network Rail's network licence requires the company to 
 
be a member of Rail Safety and Standards Board 
 ("RSSB") 
 and to comply with the Railway 
 
Group Standards it issues. 

 Aspects of the condition have become outdated, risking confusion for 
 
licence holders, particularly in relation to their duties under safety and interoperability legislation. 

With the support of RSSB's Industry Standards Coordination Committee, we have developed a proposal to revise it. 

 
As part of our July 
 2018 
 consultation on a draft network licence for Network Rail2, we outlined our intention to bring the condition up to date, including the ability for Network Rail to request the 
 
right to leave RSSB w ithout being in conflict with its licence obligations. 

 We formalised our 
 
proposals in our 
 20 
 December 
 2018 
 statutory consultation3. 

 In brief, the changes we proposed were to: 
 

 
continue to 
 require Network 
 Rail 
 to 
 be 
 a 
 member 
 of 
 RSSB, 
 but 
 reflect 
 that 
 it 
 may 
discontinue membership with ORR's approval 
 (thereby 
 mirroring 
 a 
 provision 
 in the 
 RSSB 
constitution); 
 
 
continue to 
 require Network 
 Rail 
 to 
 comply 
 with Railway 
 Group 
 Standards that 
 are 
 
relevant 
 to its activities; and 
 
 
 
require Network 
 Rail 
 to comply 
 with applicable Rail 
 Industry 
 Standards 
 or 
 to consult 
 with 
persons it 
 considers are likely 
 to be 
 affected 
 (for 
 example train operators) 
 where it 
proposes to deviate from 
 a Rail 
 Industry 
 Standard 
 (in full 
 or 
 in part) 
 and to deploy 
 equally 
 
effective means of 
 achieving 
 its purpose. 
 

## 

 
  


We have recognised the importance of consistent approaches at the operator/infrastructure interface and therefore, as expected, are proposing to make similar changes to the equivalent conditions in other operator licences, including the ability of operators to cease RSSB 
membership without contravening their licences (or SNRPs) with ORR approval. These are shown in Annex A and Annex B. The proposed changes to the existing text in licences and SNRPs are shown in red. 

 
  


The intended revisions have already been discussed widely by industry, but should you have any queries on this letter (including the annexes), please send them to: 


Licensing Team Office of Rail and Road One Kemble Street London WC2B 4AN licensing.enquiries@orr.gsi.gov.uk 


We currently intend to proceed to a formal statutory consultation proposing the changes in the second half of February 2019. We will consider any views received on our aforementioned 20 December statutory consultation before proceeding. 



I am placing a copy of this letter on our website. signature

 


Les Waters ORR logo

## Condition 8: Rssb Membership

This would take effect in: 

 Passenger train operators' Statements of National Regulatory Provisions 
 
(SNRPs) and Railways Act 1993 licences 
 
 
 Freight train operators' Statements of National Regulatory Provisions (SNRPs) 
 
 
 Non-passenger train operators' Railways Act 1993 licences 

 


1. 
If the SNRP [or licence] holder's annual turnover has never exceeded £1 million 
and the SNRP [or licence] holder is not a franchise operator, paragraphs 2 and 3 shall not have effect until the SNRP [or licence] holder's annual turnover exceeds £1 million for the first time. The SNRP [or licence] holder shall provide ORR with such information in respect of its annual turnover as ORR may from time to time require. 


2. 
With effect from the date of the coming into force of this SNRP [or licence], except where ORR consents otherwise, the SNRP [or licence] holder shall: 
 
 
(a) 
become and thereafter remain a member of RSSB; 


(b) 
comply with its obligations under the Constitution Agreement and the articles of association of RSSB; and 


(c) 
exercise its rights under the Constitution Agreement and the articles of association of RSSB so as to ensure that RSSB shall act in accordance 
with the Constitution Agreement.; and 


3. 
With effect from the date of the coming into force of this SNRP [or licence], the SNRP [or licence] holder shall (d) comply with the Railway Group Standards Code prepared by RSSB. 
 
 
43. When an SNRP [or licence] holder first becomes subject to the obligations in 

 


paragraphs 2 and 3 his rights, obligations and liabilities associated with such membership shall commence on the same day, and the SNRP [or licence] holder shall complete the formal and legal documentation associated with such membership within three months of that date. 
 
 
54. In this condition: 
 
  


"franchise operator" 
includes an operator of last resort, under section 30 of the Act. 

## Condition 9: Railway Group Standardssafety And Standards

This would take effect in: 

 Passenger train operators' Statements of National Regulatory Provisions 
 
(SNRPs) and Railways Act 1993 licences 
 
 Freight train operators' Statements of National Regulatory Provisions (SNRPs) 
 
 
 Non-passenger train operators' Railways Act 1993 licences 


 Station licences, light maintenance depot licences and network licences issued 
 
 
under the Railways Act 1993. 
 
 
1. 
The SNRP [or licence] holder shall comply with: 
 
 
(a) 
the such Railway Group Standards as are applicable to its licensed 


activities.; and; 


(b) 
subject to paragraph 2, such Rail Industry Standards (or parts thereof) as are applicable to its licensed activities. 
 
 
2. 
The SNRP [or licence] holder is not required to comply with an applicable Rail Industry Standard (or part thereof) where: 


(a) 
it has, following consultation with such persons as it considers are likely to be affected, identified an equally effective measure which will achieve the purpose of the standard; and 
 
(b) 
it has adopted and is complying with that measure. 
 
 
32. In this Condition: 
 
 
"Railway Group Standards" means standards authorised pursuant to the Railway 


Group Standards Code prepared by RSSB; 

|                                                  |     |     |
|--------------------------------------------------|-----|-----|
| "Rail Industry Standards"                        |     |     |
| has the meaning set out in the Standards Manual, |     |     |
| established by RSSB.                             |     |     |