The United Kingdom’s Office of Rail and Road is directing HS1 Ltd. to lower the charges for passenger and freight train operators to use the high-speed rail line from London to the Channel Tunnel starting in April 2025.
The regulator’s decision, published in its Final Determination of HS1 Ltd’s spending plans for the next five years, follows a thorough review of the company’s proposals, which had already proposed some reductions in costs relative to today.
The regulator has determined that overall charges should reduce by 3.8% (£5m per year) compared to HS1 Ltd’s latest plans, published in November as a response to the regulator’s Draft Determination in September. As part of this, the company is being directed to reduce its charges for renewing its track assets and stations, including St Pancras. It must also reduce its charges for operating and maintaining the railway.
ORR identified specific areas in the company’s spending plans where further improvements can be made, resulting in savings for passenger and freight train operators. Better management of the track and station assets can lower charges, ultimately benefiting customers.
In its response to the draft determination, HS1 Ltd disagreed with the amount of ORR’s proposed reductions in charges. The regulator considered additional evidence from HS1 Ltd and other stakeholders but ultimately determined that the company’s spending plans did not meet its duties for efficient spending.
