Rail Safety and Standards Board (RSSB) commissioned Economic Insight to conduct a critical review of its approach to determining its member levy for the CP7 period, including advice in relation to adjustments for inflation. The critical review focussed on the workstreams that RSSB had undertaken to determining the member levy.
We identified the objectives and best practice related to each of the workstreams, in order to then assess the approach that was implemented by RSSB. In relation to inflation, we assessed various options for how the member levy could be adjusted for inflation over time, including different indexation approaches. We took into consideration the extent to which indexes may align with RSSB’s cost base, along with how transparent and simple different mechanisms would be.