Was previously done on the basis of Fixed Track Access Charges apportioned nationally excluding Scotland which is calculated seperately with the same formula (Dft gives the example that c2c pays 1.3% of fixed track access charges therefore 1.3% of the network grant = £42.8m), so Tocs like Northern which have large networks and low fares (or quiet services) generating little revenue ended up baring the brunt as opposed to long trains travelling short distances with high occupancy generating a lot of revenue. Though it did correctly work to allocate costs for long distance services like Virgin, East Coast, etc...
This control period theyve tinkered with it a bit and Northern seems to no longer be one of the highest allocaters instead pretty much middle of the road. This is because instead of doing it nationally (total track access charges vs total network grant) they are doing it on a Network Route basis (percentage of a tocs access charges within that Route) and there is also an adjustment now added for vehicle mileage, so a TOC thats already paying large amounts of variable access charges (stations, quantity of services, etc) but with short trains wouldnt suffer because a TOC within the region operates few stations and route miles but with very long trains. (a identical change in the calculation of fixed track access to that done for network grant apportionment is also being made)
Fixes Track Access Charges as opposed to variable charges (station lease, variable costs for type and quanity of services operated, other income such as retail) makes up 15% of NR funding and is the amount it actually costs to maintain a line, renewals, upgrades (like electrification or line speed improvements, station renovations) that is in excess of predicted revenue from variable track access charges and other sources during the control period. NR is also proposing a moderate adjustment to reflect the variable track access paid but which arent vulnerable to delay and cancellation of services which would distort the correct apportionment. e.g. station charges per toc are a constant and known and not vulnerable to delays or cancellations, similarly rolling stock depots.
Its all really complicated and makes my head hurt! Some might argue that its proper that tocs that operate quieter lines be apportioned more of the cost than those which operate very busy lines which are more self financing, however others would point out that is the busy lines should help support the quieter lines rather than benefitting twice from more revenue and lower access costs and its not a tocs fault they operate a quieter area that needs government support for social needs services to more rural areas.
For the next financial year, draft figures used during NR consultation:
Route Costs
Anglia 3,992
East Midlands 2,569
Kent 3,910
LNE 8,885
LNW 10,975
Sussex 2,786
Wales 2,677
Wessex 3,910
Western 4,574
England and Wales 44,278
Scotland 5,043
Total 49,321
FTAC
Anglia 478
East Midlands 260
Kent 391
LNE 941
LNW 1,215
Scotland 580
Sussex 281
Wales 305
Wessex 416
Western 443
Total 5,311
Toc apportion FTAC
Arriva Trains Wales 228
c2c Rail Ltd 67
Chiltern Railway Company Ltd 62
XC Trains Ltd 300
East Coast Main Line Rail Company Ltd 399
East Midlands Trains 201
First Capital Connect Ltd 287
First Greater Western Ltd 425
London & Birmingham Railway 241
London Overground Railway Operations Ltd 48
Merseyrail Electrics 2002 Ltd 47
Abellio Greater Anglia Ltd 351
Northern Rail Ltd 322
First ScotRail Ltd 582
Stagecoach South Western Trains Ltd 377
London & South Eastern Railway Ltd 335
Southern Railway Ltd 286
First Keolis Transpennine Ltd 148
West Coast Trains 606
Total 5,311
Edit: Inspired to work out the percentage of fixed track access charges to route costs, that would give a comparative for how self supporting a route is compared to others. Upgrades and renewals costs are a potential distortion to this but if you figure its a average and using five year figures rather than a single year should balance out differing timescales for improvements and renewals over the control period.
FTA as a percentage of total Route Costs
Anglia 10.9
East Midlands 9.25
Kent 9.31
LNE 9.81
LNW 10.2
Scotland 10.49
Sussex 9.24
Wales 10.4
Wessex 9.77
Western 8.44
England & Wales 9.79
The result im surprised to say is that they really show very little variation all around 10% in the next control period which indidates that as it was 15% in the last control period the railways are slightly more than 5% more self financing during the next control period, at least in infrastructure terms and that includes government investment!.