Consultation on track access options and compulsory buy-out

ORR emerging conclusions and further consultation (61 pages, PDF) on the possible use of long-term access options to underpin investment in railway infrastructure. This follows from the January 2007 consultation and also interacts with the proposed TfL option for the East London Line and a proposed option for Crossrail.

The points highlighted for consultation relate to the use-it-or-lose-it regime and a proposed buy-back mechanism whereby Network Rail could apply to ORR for cancellation of some access rights at the 10th anniversary of the option contract.

Compensation to the option or access rights holder would be calculated on the basis of a proportion of the capital expenditure that was underpinned by the option, rather than as an estimate of the losses caused by the cancellation of the rights. This proposal is based on the rebate arrangements put in place in June 2007 for third-party investments.

Responses by Wednesday 31 October 2007 or at a workshop on Friday 28 September 2007.

For further information or advice please contact Franck Latrémolière.

Filed under ORR, Public transport.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon