|
|
<p>The Government's policy on open access rail passenger operation is unchanged from that outlined in the Command Paper, “Reforming our Railways”, published in March 2012:</p><p>“Government values the benefits of competition that open access can bring, such as greater choice and lower fares for some passengers. However, these benefits must be set against the need to reduce the overall cost of the railway to taxpayers. Open access operators are only charged marginal track access costs compared to franchised service operators who are charged full track access charges. This means that open access operators are effectively being subsidised by passengers on franchised services which are paying full track access charges to support the maintenance and operation of the network. Furthermore, where franchise bidders perceive a risk of open access competition undercutting them on costs they are likely to offer much lower bids. This detrimentally impacts on the taxpayer's interest by putting further pressure on fares and making it harder to deliver the rail upgrades that passengers want. Given the UK's financial position, Government does not therefore at this stage support an increase in open access competition.”</p><p>The Office of Rail Regulation is currently consulting the industry on options for the future charging structure for open access operators, and we await the outcome of its findings.</p> |