What could possibly be so sensitive about this that it cannot be revealed until such time as a Direct Award has been signed?
Remember when DfT announced that Northern would give up 4 x 156s and 3 x 180s (to be replaced by 150s) it was part of a 'good news' announcement with it focusing on Northern getting capacity increase because they would be getting additional 150s not just replacement 150s.
Maybe DfT are trying to do something similar this time?
Pretty much. While carriage numbers are equal, the quality isn't. But its rumour for now but worrying if true.
Seated capacity is more important than carriage numbers. A reduction of just 6 seats per carriage for TPE would be bad news as well as a downgrade in quality as you mention.
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There are all sorts of rumours going round at work. There is only 1 which is relatively easy to implement, and that is the rumour that in the short term some 170s will be staying with TPE and 2 x 3 car 170s will be coming from Scotrail and having their own dedicated Monday to Friday diagram to generally try and maintain capacity as is. This is easy as no crew training is required. Any other rumoured option involving any other rolling stock will pose problems in terms of crew training, diagramming, and which maintenance facilities to use.
I think the 170 rumour you've heard has logic to it though. Southern have recently signed a lease for 9 x 170s but only need 4 x 170s initially while Kelios are involved in both a franchise which will have more 170s than required and one which will have less than required from next Spring. While previously DfT said they would ask Chiltern if they could only take some of the 170s from next Spring and sublease the rest back for the interim. However, with the mooted replacements for the 170s being Sprinters that didn't look like a workable option at the time.
Personally I'd be surprised if a sublease of 2-3 350/1s or 350/3s to TPE hasn't been looked at. Two would eliminate the 6 car 185 working on Scottish services on Friday/Saturday and a third would reduce the chance of 185s being nabbed off North TPE to cover for a failed 350.
Cascaded 319s could release some 321s to LM as cover and with the current rolling stock situation it's much easier to eliminate DMUs 100% under the wires than to free up DMUs by other means. Again DfT have said about using cascaded 319s to free up DMUs for TPE but didn't expand on that, which has led to all sorts of suggestions even using 1 x 319 for a Hazel Grove-Manchester shuttle to hopefully free up a Sprinter, which may even need to be used to cover the diagramming changes involved in splitting up a service.