EWS Regulation 29 appeal regarding HS1 - ORR determination
| Date | 26 November 2008 |
| Section | EWS Regulation 29 appeal regarding HS1 |
THE OFFICE OF RAIL REGULATION’S DECISION ON AN APPEAL BY ENGLISH
WELSH & SCOTTISH RAILWAY LIMITED UNDER REGULATION 29 OF THE
RAILWAYS INFRASTRUCTURE (ACCESS AND MANAGEMENT) REGULATIONS
2005 REGARDING THE RAIL FREIGHT CHARGING SYSTEM AND LEVEL OF
ACCESS CHARGES FOR THE HIGH SPEED 1 RAILWAY
DECISION: The Office of Rail Regulation decides this appeal as set out in paragraph
57.
Introduction
1. This is the decision of the Office of Rail Regulation (“ORR”) regarding an appeal
made by English Welsh and Scottish Railway Limited (“EWS”) on 25 March 2008
under Regulation 29 of the Railways Infrastructure (Access and Management)
Regulations 2005 (the “Regulations”).
2. In this decision, words and definitions have the same meaning as under the
Regulations or under European Directive 2001/14 (the “Directive”), as the case
may be, unless the context requires otherwise.
3. EWS has appealed to ORR because it is “aggrieved with the continuing lack of a
proper charging scheme and robust level of infrastructure fees pertaining to the
High Speed 1 Railway (“HS1”) without which, EWS is unable to continue to plan
its business with a reasonable degree of assurance”.1 EWS has requested ORR
to investigate these matters with a view to:
(a) directing those responsible to establish and publish a proper charging
scheme and charging system for rail freight services using the HS1
railway in accordance with Part 4 of the Regulations along with a robust
level of infrastructure fees that meet the requirements of Part 4 and
Schedule 3 of the Regulations;
(b) determining whether the usage charges for rail freight using the HS1
railway have been set at the cost that is directly incurred as a result of
operating such services;
(c) determining that a ‘mark-up’ on usage charges is inappropriate for rail
freight using the HS1 railway. Alternatively, if ORR considers that a ‘mark-
up’ is appropriate, it is asked to determine which market segments can
afford to bear a ‘mark up’ along with a suitable value for each charge; and
(d) determining that an ‘investment recovery charge’ is inappropriate for rail
freight services using the HS1 railway.
Background
4. EWS explained that it has been developing its plans to facilitate a substantial
increase in the operation of Trans-European rail freight services to and from the
UK through the Channel Tunnel. The HS1 railway provides a European high-
gauge route into the United Kingdom. As a result, before it can operate rail
freight services on the HS1 railway, EWS needs to undertake and complete
1 Letter from EWS to ORR dated 25 March 2008, http://www.rail-
reg.gov.uk/upload/pdf/ctrl_ltr_att_25.pdf
Doc # 322905.04
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