UK: The Office of Rail & Road has begun consultation on proposals to reform the Schedule 4 regime. This compensates passenger and freight train operators for loss of revenue and additional costs incurred as the result of disruption to services due to engineering possessions, and incentivises Network Rail to plan possessions so as to minimise disruption.
ORR says the replacement of franchises with concession-style agreements is bringing ‘dramatic changes’ to the rail industry’s commercial dynamics, and Schedule 4 financial protection may no longer be needed as some revenue and cost risks are removed.
However, even after full implementation of the Williams-Shapps Plan, there would still be a role for a mechanism to provide protection for fully commercial services such as freight and open access operators, and potentially for other operators that might be given greater freedoms around revenue sharing.
ORR is proposing to make one significant change by allowing all train operators to opt out of Schedule 4, either completely or partially, therefore giving them the flexibility to choose if they need protection through the regime.
It is also exploring opportunities to make limited and incremental improvements to address some existing issues and ensure that Schedule 4 is fit for purpose in the period before full implementation of the Williams-Shapps Plan.
Stakeholders are invited to respond to the consultation by December 13.
