Variable access charges for freight

The Office of Rail and Road has set variable access charges for freight and charter operators.

ORR said the variable usage charges will “only increase to reflect the full costs of wear-andtear on the network (as required by relevant legislation) towards the end of CP7”.

It claimed: “On average, total variable charges will remain flat for freight and charter operators for two years and then increase over the last three years of Control Period 6 (CP6). Variable usage charges will be capped to achieve this profile.”

The average annual increase in the total variable charges over CP6 will be 2.1% for freight and 1.2% for charters, in real terms.

ORR stated: “In addition, using CPI [Consumer Price Index] to index charges instead of RPI [Retail Price Index] will mean charges are on average 5% lower than they otherwise would have been at the end of CP6.

“Greater collaboration between Network Rail and operators to improve efficiency also has the potential to further mitigate any increases in subsequent Control Periods.”

However, ORR plans that biomass trains will be subject to charges which recover some of NR’s fixed costs in CP6.

Rail Freight Group Executive Director Maggie Simpson said: “We are pleased that the Office of Rail and Road have listened to the significant concerns of rail freight customers and operators, and propose to limit the increase in freight charges over the next Control Period.

“Although we need to understand the detailed impact on different markets, this should provide a stable framework for the next five years. We are, however, disappointed that ORR have chosen to increase charges for biomass traffic.

“In the longer term, Network Rail must now deliver on its efficiency targets so that the potential for further price increases in CP7 is reduced.”