From an
ORR» emailshot....
The Office of Rail Regulation (ORR) has today published a consultation seeking views on the potential for more 'on-rail competition' - the direct competition between train operators for passengers - to help meet the rail industry^s value for money challenge.
The consultation considers whether more on-rail competition would be desirable, taking account of its potential benefit for passengers but also exploring how to ensure that such competition does not lead to significant additional costs for the taxpayer.
The consultation requests views on:
- the benefits that existing on-rail competition has delivered;
- the potential benefits of competition generally;
- the role that further on-rail competition could play in driving value for money;
- the implications of more on-rail competition for the flow of funds through the industry, particularly the impact on government and taxpayer expenditure; and
- options for encouraging more on-rail competition, including how any impact on taxpayer expenditure could be mitigated.
The consultation forms an important part of the rail regulator's periodic review (PR13). In February 2012, the rail regulator will review Network Rail's access charges - the charges that the company is permitted to levy on train operators for their access to its network - factors that are critical to on-rail competition. This consultation will help inform future views and policy.
Cathryn Ross, ORR's director of railway markets and economics, said:
"It is essential that the railways provide value for money for passengers and taxpayers, and that the potential for the railways to drive economic growth is fulfilled. As the economic regulator we are determined to help drive improvements that will benefit passengers and taxpayers.
"Greater on-rail competition is one means by which the challenge of making significant efficiency savings could be addressed. As part of our next periodic review, we must therefore consider whether and how to move towards greater on-rail competition and the benefits this could bring for customers, taxpayers and train operators."
The consultation, The potential for increased on-rail competition, can be found at:
http://www.rail-reg.gov.uk/pr13/consultations/orr017.phpThe consultation closes on 4 December 2011.