The Office of Rail and Road (ORR) has proposed a reduction in
In its Draft Determination of HS1 Ltd’s spending plans, released on 30 September 2024, ORR recommends cutting charges for passenger trains and halving fees for freight operators.
In its Draft Determination of HS1 Ltd’s spending plans, released on 30 September 2024, ORR recommends cutting charges for passenger trains and halving fees for freight operators.
This determination outlines ORR’s assessment of HS1 Ltd’s proposed spending for the five-year period from 2025 to 2030. ORR’s review identified areas where the company could improve its efficiency, which would lead to cost savings for both passenger and freight train operators.
The review commended HS1 Ltd for improvements made during the current control period (2020-2025), including better maintenance of track assets, thanks to more detailed asset data.
ORR has recommended that HS1 Ltd apply the same detailed asset management approach to other infrastructure, such as signalling and station equipment like lifts and escalators, to ensure future efficiency.
For the first time, ORR has also reviewed station costs, including those for St Pancras, and has suggested ways to manage them more effectively to reduce expenses.
The proposed reductions in charges are expected to bring significant savings to both international and domestic operators over the next five years, benefiting passengers and freight services.
“The High Speed 1 line is a vital connection between the UK and Continental Europe, and makes a crucial contribution to the UK economy, supporting growth. It is important that it continues to be a resilient, high-performing network for both passengers and freight users.
“The detailed scrutiny and challenge we’ve applied to HS1 Ltd’s plans should see the costs of operating on the line reduce significantly, giving savings for both international and domestic operators over the next five years, with benefits for passengers and freight users.”
The proposed reduction in charges would align with Campaign for Better Transport’s
Currently, track access charges in the UK are three times higher than those in Europe, resulting in costs being passed on to passengers. Reducing these charges is arguably a crucial first step in making rail travel more competitive with air travel.
