LONDON, UK: The Office of Rail and Road (ORR), the independent regulator of Britain’s railways, has today published its proposal to allow Network Rail to charge open access rail services to major airports for some of the fixed costs of the network.
The proposal is part of ORR’s periodic review of Network Rail, which sets the charges and incentives for the next control period (CP7) from April 2024 to March 2029.
Open access operators are train companies that do not hold a franchise and compete with franchised operators on certain routes. They currently pay charges that cover the direct costs of using the network, such as wear and tear, but not the fixed costs, such as maintenance and renewal. ORR considers that open access operators should pay a contribution to the fixed costs where the demand is sufficiently strong that the operator is able to pay. This would ensure a fairer allocation of costs between different types of operators and encourage more efficient use of the network.
ORR is proposing to establish a new market segment for open access services to major airports, which would capture services that run between large stations on the mainline network and stations serving major airports. ORR is proposing to set an infrastructure cost charge (ICC) of £5 per train mile for these services, in line with its proposed ICC for the interurban market segment, which covers long-distance passenger services.
The proposal would mean that Network Rail would levy an ICC on open access services from major rail stations in Britain to four airports: Gatwick; Stansted; Heathrow; and Birmingham International. These services are currently operated by Gatwick Express, Stansted Express and Heathrow Express. ORR estimates that the ICC would generate around £10 million per year for Network Rail in CP7.
ORR is inviting stakeholders to respond to its proposal by 17 September 2021. ORR will publish its final determination on Network Rail’s charges and incentives for CP7 in December 2021.