Structure of railway costs and charges: emerging conclusions

ORR letter (PDF, 9 pages) covering the final reports by Booz Allen Hamilton and TTCI on usage costs, and by AEA Technology on electricity consumption rates. The ORR proposes to retain the "top-down" approach to setting usage charges (without any adjustment for rolling contact fatigue), on the grounds of lack of data for a bottom-up engineering based approach, but to delay the increase of usage charges until 2009. ORR also proposes to retain the capacity charge in its current form despite the limitations of its implementation by Network Rail billing systems. No change is proposed to fixed charges, although a report has been commissioned from AEA Technology. An industry seminar is to take place in London on Friday 22 July 2005 (three days after the date of the letter). Responses are invited by Wednesday 31 August 2005.

Consultants' reports (all PDF): BAH/TTCI usage costs stage 1 (63 pages); BAH/TTCI usage costs stage 2 (126 pages); AEA consumption rates stage 1 (13 pages); and AEA consumption rates stage 2 (11 pages).

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, ORR, Public transport.

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