Tube Lines seeks assurances on future price controls

PPP Arbiter notice (5 pages, PDF) that Tube Lines, the infrastructure company responsible for the infrastructure and rolling stock used by the Jubilee, Northern and Piccadilly lines, is seeking a hearing and guidance from the Arbiter on the treatment of capital expenditure brought forward across control period boundaries beyond the strict requirements of the contract in order to obtain earlier operational expenditure or performance gains. Tube Lines points to wording in the PPP contract emphasising future expenditure requirements as the basis for setting charges at periodic reviews and seeks an assurance that brought forward capital expenditure will nevertheless be renumerated. The Arbiter expects to respond by the end of September 2006.

For further information or advice please contact Franck Latrémolière.

Filed under PPP Arbiter, Price controls, Public transport.

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