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ORR seeks to cut HS1 charge increases

Photo: HS1 service: Southeastern Class 395 ‘Javelin’ unit at St Pancras.

 

The Office of Rail and Road has ruled that HS1 Ltd should reduce its proposed charges to train operators over its next five-year Control Period 3 (2020-25).

HS1’s base case proposal was for charges of £38.2 million per year, but ORR has suggested cutting this to £26.1 million. HS1’s proposed amount was around twice that for CP2, which ORR says was driven by HS1 taking a different approach for risk and contingency and the inclusion of ‘delivery integrator’ costs. The infrastructure owner’s proposals were criticised by train operators, who would have been faced with substantial increases in access charges per train minute on the high-speed line compared to the current five-year period.

HS1 has until 30 November to make revisions to its proposed five-year asset management strategy document, following which ORR will take into account consultation responses and the company’s revised proposals before publishing a final determination on 7 January 2020.

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