Proposed cap on rail freight access charges until 2014

ORR consultation (114 pages, PDF) on proposed capping arrangements for freight access charges in the price control period 2009-2014. This would mitigate the effect on the rail freight sector of the likely (but as yet unknown) increases in some elements of the charges to be determined by Network Rail under ORR's supervision. The proposed caps would allow an increase of 20 per cent over RPI inflation for variable usage charges, and the introduction of additional charges of up to £20.5 million a year plus RPI for the use of freight-only lines by trains serving carrying coal for electricity generation or spent nuclear fuel.

The proposed reservation charge re-distribution system would be on top of these charges. The net effect on total charges paid by freight operators would be zero, although there could be a material net cost on some segments (including in particular coal for electricity generation if there are large seasonal variations).

ORR argues that these increases in freight charges are compatible with its previous policy commitments because there has been a material change in circumstances as a result of:

Responses by Tuesday 30 January 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, ORR, Public transport.

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