Chris Nash and Andrew Smith
This chapter discusses developments in rail regulation in Britain, from the original approach in which an independent regulator was responsible for regulation of a private infrastructure manager with minimal government involvement, through the period in which Network Rail was regarded as a not-for-dividend private company to the current day, when it is seen as a publicly owned company and the government is heavily involved in its regulation. It is concluded that, whilst regulation of the efficiency of the infrastructure manager is needed, the success of the process in Britain has been at best mixed. One key issue has been misalignment of incentives between the infrastructure manager and train operating companies. A variety of approaches to this has been tried in Britain, but none is straightforward and they would not necessarily be appropriate in the circumstances of other countries.