This is NOT the official MerseyRail website!

May 13, 2009

Merseyrail compensation is “commercially confidential” …

Filed under: Merseyrail — Tags: , , , , , — Chris @ 11:37 pm

Well, my Freedom of Information request hasn’t gotten me any further. The Office of Rail Regulation (ORR) has replied to my request, the meat of which is quoted below.

Thank you for your email of 15 April 2009 regarding your request under the Freedom of Information Act (FOIA) 2000.

With regard to your query about whether Network Rail falls under FOIA, I can confirm that Network Rail is not currently covered by the Act and is under no obligation to respond to requests for information from members of the public.

Please see below the information I have provided which should answer your questions about Merseyrail and Network Rail:

1. Is it correct that Network Rail will charge MerseyRail a reduced fee for track rental, to cover the period that the line is out of use? If this is the case, by how much will the charge be reduced (approximately).I have been advised that Merseyrail pays track access charges for the use of Network Rail’s network. These charges are a mixture of variable charges based on usage and fixed charges. Variable charges reflect the costs to Network Rail of additional use. If Merseyrail is unable to use the network then it will not pay variable charges (and Network Rail will not incur variable costs as train services are not operating). In addition, Merseyrail will receive compensation from Network Rail under the possessions regime. It is not true however to say that MerseyRail receives a rebate when Network Rail takes a possession. Further details of the possessions and charges regime is provided in the criteria and procedures document which is available on our website at: http://www.rail-reg.gov.uk/upload/pdf/386.pdf.

2. Is it correct that there is a ‘compensation’ scheme in place, whereby Network Rail will provide financial compensation to Merseyrail for the possible loss of passengers on the network as a result of the works? Again, if this is the case, how much, approximately, will this compensation amount to?

The list of variable charges is published in our website at:http://www.rail-reg.gov.uk/server/show/nav.1917. The compensation paid will depend on the circumstances of the possession and can involve compensation for revenue loss and costs. The compensation information is commercially confidential between Network Rail and the train operator and ORR does not hold this information.

The key point here, I believe, is the line in the answer to the second of my questions, where the term “compensation for revenue loss” is used.

How can Merseyrail have lost any revenue, when they are charging their passengers the same amount of money for a ticket, despite the reduced service?

It’s no wonder that Network Rail and “the train operator” (Merseyrail) are keeping quiet about this. Unfortunately, I don’t have the time nor the legal skills to thoroughly read through the contents of either the PDF or the website suggested by the ORR (and linked to above). I did have a go at trying to find something meaningful in the “Criteria and procedures for the approval of track access contracts” PDF, but it made my head hurt.

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