Electricity price woes for the rail industry
AN INCREASE in electricity charges by Network Rail applied to companies who operate electric trains has seen Freightliner temporarily storing its fleet of Class 90s, replacing them with diesel haulage until the situation stabilises. The rise in the wholesale price of electricity charged to Network Rail means the company has been forced to pass on this cost to any operators who are not tied into pre-arranged fixed price agreements, effectively charging them for any electricity consumed as their trains operate across the electrified sections of the national network.
A statement by the Rail Freight Group in response to the move said: “Rail freight is acknowledged as a low carbon transport mode, emitting 76% less carbon dioxide than road freight even with the use of diesel locomotives. Rail freight operators are committed to further decarbonisation, and measures to increase sustainability.
“However, the current significant increase in the wholesale cost of electricity for haulage means that some operators have had to take the regrettable decision to temporarily move back to diesel locomotives. “A 200% increase in electricity costs for each train cannot be absorbed by the operators, or customers, and so necessary action is being taken to ensure that trains can continue to operate delivering vital good across the country.
“Our members are assuring us that this is a temporary measure and will be kept under constant review.”
More analysis on this situation will be contained in the next issue.