Front cover headline in the latest issue of RAIL.
The article explains the ORR plans to remove the cap limiting the compensation charter operators would have to pay Network Rail if their trains delay other services. To cover this ticket prices for charters may have to rise significantly potentially making them uneconomic to run after April 2014.
http://www.natrailawards.co.uk/news/default.asp?storyID=25
The article explains the ORR plans to remove the cap limiting the compensation charter operators would have to pay Network Rail if their trains delay other services. To cover this ticket prices for charters may have to rise significantly potentially making them uneconomic to run after April 2014.
http://www.natrailawards.co.uk/news/default.asp?storyID=25
Rail Magazine said:CHARTER TRAINS UNDER THREAT
Charter trains could become extinct, under plans by rail regulators to remove the cap limiting the compensation charter operators would have to pay Network Rail if their trains delay other services.
Currently there is a cap of £5,000 per incident, but the Office of Rail Regulation estimates that this has reduced the bill on charter operators by £600,000 since April 2009. ORR notes that the £5,000 cap also applies to NR in paying compensation to charter operators, but that this is not applied in practice.
Britains two biggest operators running charters are DB Schenker and West Coast Railway Company. DB told RAIL it was considering the proposals and would respond in due course. WCRC Manager James Shuttleworth said the plan had the potential to have profound effects, and needs sensible discussions.
In private, RAIL understands that both operators are very unhappy with the plans, with one source saying it would force charters out of the market if the change resulted in unlimited costs.
The Railway Touring Company is a charter promoter run by Nigel Dobbing. He spoke to RAIL about ORRs plans and said: I dont think there will be any charters. We wouldnt be able to afford them.
He said that the charter companies would increase their charges to promoters to cover the risk of delay fines, even if the promoter wasnt directly paying the delay bill.
ORR is consulting on its plan, but claims that charter operators are currently being protected from the risks relating to their own performance. It suggests that charter operators should, in principle, arrange for protection through insurers.
Dobbing dismissed ORRs idea that charter operators should take out insurance, saying the risks were too high. He added that he thought that NR was probably the driving force behind ORRs plan.
One anonymous operator questioned the whole rationale of ORRs performance regime, asking how much it cost to run, who benefited, and whether the travelling public received anything from it.
... read more in RAIL 711, on sale 12/12/2012