Calm after Southeastern franchise storm

AS REPORTED in our last issue, the Southeastern franchise was terminated by the Department for Transport, with operations coming under the control of the Operator of Last Resort organisation from October 17.

The financial irregularities are reported to have been in connection with the use of HS1 by Southeastern domestic high-speed services. The cost of the charges is funded by the

DfT on the basis of a usage related tariff, so if fewer services than planned are operated a rebate should be paid back. It appears that this had not taken place, causing a shortfall in Government receipts of £25 million, which have subsquently been paid.

The issue seems to have arisen at a high level within the Govia consortium made up of the Go Ahead Group (65%) and Keolis (35%), rather than the train operating company itself, that has had a good reputation for the efficient delivery of train services which it has operated since the franchise started in 2006.

It is understood that an interim National Rail Contract will replace the current Emergency Recovery Measures Agreement. These contracts reflect the new relationship that will follow the implementation of the Great

British Railways organisation. Both Greater Anglia and West Midlands

Trains were directly awarded these new contracts on September 19 and they are expected to run until 2026, when a further refinement will take place, with new Passenger Service Contracts providing a longer-term framework.

There is some uncertainty about whether existing Southeastern boundaries will be maintained, as Transport for London has said for some time that it believes a number of inner suburban routes should become part of the London Overground.