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Hauts-de-France contract won by SNCF voyageurs

riceuten

riceuten

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Joined
23 May 2018
Messages
957
Fragezeichnen said:
The benefits of an open competition for service provision include:
  • A service definition based on needs rather than what the monopoly incumbent operator is prepared to agree to
  • Transparency regarding service subsidy levels
  • Defined penalties for failing to deliver on the contract
  • Market pressure should costs be unreasonably high
Of course, I do realise that all of this is seen with extreme scepticism by most Brits, who would prefer a permanent stated owned monopoly.
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Skepticism because it doesn't work. We had many decades of private sector monopoly incumbent operator that delivered a worse service at a higher cost. Penalties were just passed on to farepayers. There is no "market pressure" in any meaningful sense of the word
 
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RailUK Forums

The exile

The exile

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U-Bahnfreund said:
What I'm trying to say is this: Hauts-de-France could have, if it wanted to, set up its own train company to run their TER services instead of tendering out (but they didn't), and that would have been fine under EU law. That's in response to the claim that the EU forced them to tender the services out.
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Is the contract really less than 500K km per year? That’s less tgan 2000km per day which doesn’t sound very much unless you’re talking a very small network indeed.
 
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U-Bahnfreund

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The exile said:
Is the contract really less than 500K km per year? That’s less tgan 2000km per day which doesn’t sound very much unless you’re talking a very small network indeed.
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The 500,000 km/year limit from article 5 subsection 4 is a different exception, it refers to a direct award to any kind of company (i.e. also private companies). The in-house contract from article 5 subsection 2 that I'm referring to doesn't have a km limit.
 
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