Further emerging conclusions on Schedule 8

ORR letter (14 pages, PDF) stating emerging conclusions on some aspects of the review of the Schedule 8 operational performance regime (delays and cancellations).

On compensation rates, the letter proposes to implement a recalibration using data from the latest passenger demand forecasting handbook (PDFH) and recent revenue data, together with a 50 per cent increase of the valuation of cancellations.

On sustained poor performance by Network Rail, the letter proposes that compensation on the basis of actual loss should be available to train operators when Network Rail's delay minutes exceed the benchmark value by more than 20 to 25 per cent (a threshold recognised as largely arbitrary). Such compensation would excluding indirect losses (in the sense that they would not be recoverable in a claim for damages at large) and would be subject to the Schedule 9 liability cap but not to the force majeure exclusion.

On "bonus" payments to Network Rail for better-than-benchmark performance, the letter proposes an ad hoc approach, whereby limits on bonus payments would only be approved where train operators can prove that they are appropriate.

Responses by Friday 21 October 2005.

For further information or advice please contact Franck Latrémolière.

Filed under ORR, Public transport.

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