A Network Rail body will add an extra layer of scrutiny to new rail franchise bids to make sure that plans by operators are workable, in the wake of the collapse of the East Coast mainline contract.

The recently launched body, called the System Operator, will sit within Network Rail and is likely to have a busy few years with new contracts set to start on East Midlands and Southeastern in 2019 and on the West Coast mainline in 2020.

The System Operator was put in place a year ago but its workload will only start to ramp up now, as it prepares to assess the bids which come in for new franchises. The move comes just as the East Coast mainline joint venture between Stagecoach and Virgin Trains looks set to hand the keys back to the franchise just three years into an eight-year deal.

Outgoing Network Rail boss Mark Carne said the division’s comments on new rail contracts would have greater weight because it would be separately funded and also more embedded in the regulatory infrastructure of the rail industry.

“If a train company submits a bid with a level of performance reliability that the System Operator didn’t think was achievable, it would be able to say so as well as asking for proof from the company,” Mr Carne said.