reg 15 Infrastructure costs and accounts
(1) Subject to section 2 of the Channel Tunnel Act 1987 , the authorities designated by paragraphs (2) to (4) must, in the case of the railway infrastructure in relation to which they are designated by those paragraphs, ensure, in the way set out in the relevant paragraph, that, under normal business conditions and over a reasonable time period which must not exceed five years, the accounts of an infrastructure manager at least balance— (a) income from railway infrastructure charges; (b) surpluses from other commercial activities; (c) non-refundable incomes from private sources; and (d) state funding, including, where appropriate, advance payments from the state, with railway infrastructure expenditure. (2) For the purposes of paragraph (1), the Office of Rail and Road is designated in relation to railway infrastructure subject to an access charges review, and must discharge its obligations under that paragraph through that review. (3) For the purposes of paragraph (1), the Secretary of State is designated in relation to a rail link facility, and must discharge obligations under that paragraph through the development agreement. (4) For the purposes of paragraph (1), the Office of Rail and Road is designated in relation to railway infrastructure that is not covered by paragraphs (2) or (3) and has, in order to discharge its obligations under that paragraph, the power to issue such directions limiting, to any extent necessary, an infrastructure manager's ability to finance infrastructure expenditure out of borrowed funds. (5) Without prejudice to the right of any person to make an application to the court under Part 54 of the Civil Procedure Rules 1998 , it is the duty of any person to whom a direction is given under paragraph (4) to comply with and give effect to that direction. (6) The infrastructure manager must enter into an agreement with the Secretary of State or, in the case of the tunnel system, British Railways Board , which must fulfil the basic parameters of Schedule 4A , and cover a period of not less than five years. (7) The Office of Rail and Road must, with due regard to safety and to maintaining and improving the quality of the infrastructure service, provide infrastructure managers with incentives to reduce the costs of provision of railway infrastructure and the level of access charges. (8) The Office of Rail and Road must— (a) in the case of a rail link facility, exercise its rights and responsibilities under or by virtue of the relevant development agreement; and (b) in any other case, exercise its functions under the Act, in order to ensure that the requirements set out in paragraph (7) are complied with. (9) In fulfilling its obligations under paragraph (8), the Office of Rail and Road must base its decisions on an analysis of the achievable cost reductions. (10) The infrastructure manager must develop and maintain a register of its assets and the assets it is responsible for managing insofar as this information is required to assess any funding needed to repair or replace such assets. (11) The register referred to in paragraph (10) must be accompanied by details of expenditure on renewal and upgrading of the railway infrastructure. (12) The infrastructure manager must establish a method for apportioning costs to the different categories of services offered to railway undertakings, which must be updated from time to time on the basis of best international practice. (13) Where required by the Office of Rail and Road, the infrastructure manager must seek prior approval for the method for apportioning costs referred to in paragraph (12).