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Insurance to cover most of rail’s £180M storm repairs

Repairing storm and flood damage will cost Network Rail up to £180M, chief executive Mark Carne has confirmed.

Carne has also said that there will be no funding for any work to significantly improve the resilience of the rail network to climate change until 2019 at the earliest.

In a letter to the Commons transport select committee, Carne said that the cost of repairs will be between £170M to £180M, with £100M of this repairs covered by insurance.

The rest of the money will come from within Network Rail’s overall funding settlement.

Carne said that his organisation will not be seeking any other emergency funding.
Carne said his letter was intended to clarify comments he made while giving evidence to the committee late last month. He told the committee that these additional costs would have “no impact” on capital and maintenance budgets elsewhere on the network and that no projects for the next control period would be cancelled or “significantly” delayed as a result.

His letter says that both statements are true, but that he “should have been clearer” about how these additional costs would be absorbed.

Specifically, he says that his organisation’s ability to absorb extra costs “may not” extend to the capital investment required to “significantly improve the resilience of the network to climate change”.

Capital works that are identified in studies set up following the extreme weather will form part of his organisation’s funding bid for the next CP6 control period, starting in 2019.

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