The Office of Rail and Road (ORR) has announced that it is directing HS1 Ltd to reduce the charges it will make to train operating companies for using passenger and freight trains on the high-speed rail link from London to the Channel Tunnel from April 2025.
The regulator's decision follows a thorough review of the company's proposals. The company had already proposed some cost reductions from today's levels in its final determination on HS1 Ltd's spending plans for the next five years.
Compared to HS1 Ltd's latest plans, published in November in response to the regulator's draft determination in September, the regulator has decided that total charges should be reduced by 3.8% (£5m per year). The regulator's decision follows a thorough review of the company's proposals. The company had already proposed some cost reductions from today's levels in its final determination on HS1 Ltd's spending plans for the next five years.
The company will have to reduce its track and station renewal costs, including St Pancras. It is also being asked to reduce the level of charges it charges for the day-to-day operation and maintenance of the railway. The ORR has identified specific areas in the company's spending plans where further improvements can be made. This will result in savings for passenger and freight train users.
„Our thorough, independent review of HS1 Ltd’s spending plans has resulted in significantly lower costs for passenger and freight train operators using the high speed line from April 2025. Although, overall, HS1’s original plans were good, the company must now change specific areas of those plans to account for our decisions, which should benefit everyone who uses this railway,“ said Feras Alshaker, Director, Planning and Performance.
