EMR's ERMA period has finished - what next?

[bluelagoon8951]

So apparently the Emergency Recovery Measures Agreement for EMR ended yesterday (October 16th). They're being given a "direct reward" of a 4 year extension (source below) but what does this mean, is it EMR now completely in charge of their services and fares, or is there government intervention?

If I remember correctly, it's government policy that when licences run out, operations are then controlled by the government, just branded as the company "in charge" of the franchise. How does this extension fit into that?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1029687/east-midlands-railway-pin-corrigendum.pdf

 

[skyhigh]

It'll essentially just be a 4 year extension of the ERMA.

If I remember correctly, it's government policy that when licences run out, operations are then controlled by the government, just branded as the company "in charge" of the franchise. How does this extension fit into that?

If by that you mean they transfer to the Operator of Last Resort then no. The current thing seems to be extending the management contracts brought in by the ERMA (see Avanti for example) with the owning group being paid a management fee but most decisions and revenue risk resting on the DfT.

 

[Scanderina]

So apparently the Emergency Recovery Measures Agreement for EMR ended yesterday (October 16th). Wikipedia says they're being given a "direcr reward" of a 4 year extension but what does this mean, is it EMR now completely in charge of their services and fares, or is there government intervention?

If I remember correctly, it's government policy that when licences run out, operations are then controlled by the government, just branded as the company "in charge" of the franchise. How does this extension fit into that?

A 'direct award' is simply a description of the way the contract goes to the existing operator without a competition. It doesn't describe the type of contract that they're on. They will either be on an ERMA or a NRC - they are similar contracts where the revenue risk rests with DfT.

In summary, very little changes except the current operator gets a four-year extension.

 

[LowLevel]

A National Rail Contract was signed a couple of weeks ago for a minimum of 4 years with possible extensions until 2030.

 

[bluelagoon8951]

most decisions and revenue risk resting on the DfT

Does "decisions made by the government" not include ticket fares?

 

[SCDR_WMR]

I would imagine they now have an NRC same as WMT have. So simply a management contract.

Whether the buyout of the Abellio TOCs from Dominic Booth will affect this I don't know

 

[Yew]

I would imagine they now have an NRC same as WMT have. So simply a management contract.

Whether the buyout of the Abellio TOCs from Dominic Booth will affect this I don't know

If the taxpayer is taking all the decisions and all the risk, I do wonder what the point of having the private sector involved at all is?

 

[LNW-GW Joint]

If the taxpayer is taking all the decisions and all the risk, I do wonder what the point of having the private sector involved at all is?

Because the current legislation requires rail services to be contracted to the private sector (unless they fall into temporary OLR control).
All the ERMA/NRCs are pending the launch of GBR which may change the context if it ever takes off.
But then the recent government changes might impact all that...

 

[dk1]

If the taxpayer is taking all the decisions and all the risk, I do wonder what the point of having the private sector involved at all is?

Especially if they don’t allow them to give their staff a pay rise without permission Grrrrr!!!

 

[Yew]

Because the current legislation requires rail services to be contracted to the private sector (unless they fall into temporary OLR control).
All the ERMA/NRCs are pending the launch of GBR which may change the context if it ever takes off.
But then the recent government changes might impact all that...

I forgot the vomit inducing name of "Great British xxxxxxx".

 

[dk1]

I forgot the vomit inducing name of "Great British xxxxxxx".

With a bit of luck they’ll bin that tosh.

 

[pdeaves]

Whether the buyout of the Abellio TOCs from Dominic Booth will affect this I don't know

No, the contracts will novate to the new owner.

 

[Wyrleybart]

Imagine the DfT have to somehow "stimulate the market" to encourage corporates to become interested in the contracts. As of now Abellio (non UK) have followed NX and Virgin out of the Rail industry, along with Prism and maybe also Stagecoach. Presume DfT are increasingly looking towards the far east for companies to be involved in running our passenger trains. But stability ????