A multi-million fine imposed on Network Rail following chaos on the trains has been branded "a scandal".

Over-running engineering works caused the prolonged closure of London Liverpool Street at the New Year, causing major disruption for Essex commuters.

The Office of Rail Regulation (ORR) has ordered that the £14 million fine, announced in February, must be paid by Network Rail despite the company offering to plough the same sum in to improving the railways.

Derek Monnery, chair of Essex Rail Users' Federation, said the fine was "verging on immoral".

"I think it's a scandal," he said. "I do not blame the regulator for fining Network Rail because it was a shambles, but the money should have stayed within the industry."

Iain Coucher, Network Rail chief executive, said that the company, which owns and maintains the rail infrastructure, said it was "disappointed" but "accepted" the fine.

"We had suggested that this sum be invested in the rail network to fund improvements," he said.

"Since the problems at New Year, the company has made significant changes to the way we plan and carry out big improvement work."

Bill Emery, chief executive of ORR, said Network Rail's proposal had been considered "very carefully".

"We remain convinced that the systemic weaknesses we have found in Network Rail's approach are a serious and continuing breach of its licence meriting a financial penalty," he said.