Rail Regulator Orders HS1 Ltd to Further Lower Charges for Train Operators
January 6, 2025
The Office of Rail and Road (ORR) has today ordered High Speed 1 (HS1) Ltd to further reduce the charges it levies on train operators using the high-speed rail line. HS1 is the private sector operator of the 108-mile railway line connecting London St Pancras with the Channel Tunnel.
The ORR’s decision is based on a review of HS1 Ltd’s allowed revenue. The regulator assessed how much money HS1 Ltd needs to cover its operating costs and make a “reasonable return” on its investment.
The ORR determined that HS1 Ltd’s current charging structure does not meet this test. The regulator said that HS1 Ltd is recovering too much money from train operators and that this is stifling competition and innovation on the high-speed rail market.
The ORR has ordered HS1 Ltd to reduce its charges by £50 million per year from April 2026. This reduction will be passed on to train operators, who will be able to offer lower fares to passengers.
The ORR’s decision is a major victory for train operators and passenger groups. They have long argued that HS1 Ltd’s charges are too high and that they are preventing the high-speed rail market from reaching its full potential.
The ORR’s order is binding on HS1 Ltd. If the company fails to comply, the ORR can impose fines or other penalties.
HS1 Ltd said it is “disappointed” by the ORR’s decision. The company said it believes its current charging structure is fair and reasonable. HS1 Ltd said it will “carefully consider” the ORR’s order and “respond in due course.”
The ORR’s decision is expected to have a significant impact on the high-speed rail market. The lower charges will make it more attractive for train operators to run services on the HS1 line. This is likely to lead to increased competition and innovation, which will benefit passengers.
Additional Information:
- The HS1 line is one of the busiest high-speed rail lines in Europe.
- The line is used by a variety of train operators, including Eurostar, Southeastern, and Avanti West Coast.
- The ORR is the independent regulator of the rail industry in the United Kingdom.
- The ORR’s mission is to ensure that the rail industry works in the interests of passengers and freight users.
Rail Regulator orders HS1 Ltd to further lower charges for train operators
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