Rail Regulator consults on access charges for electricity

17 September 1999
ORR/99/39

The prospect of train operators being able to buy their own electricity for traction is raised in the latest document published by the Rail Regulator, Tom Winsor, as part of his review of Railtrack's access charges.

Launching the periodic review document "A technical consultation on charging for electricity for traction" Mr Winsor said: "The electricity used by train operators for traction is bought in bulk by Railtrack on their behalf. Railtrack recovers the cost through access charges.

"This element of Railtrack's charges, which vary with use, is set at a level that is independent of actual costs so as to provide an incentive for Railtrack to improve its procurement efficiency. However, the current structure is not cost reflective and does not allow operators to choose an alternative supplier of electricity.

"This document invites views on whether the proposed changes to Railtrack's electricity charges will provide improved incentives for the procurement and use of electricity. It also asks whether it would be appropriate to allow operators to purchase their electricity requirements from competing suppliers."

A copy of the document "Periodic review of Railtrack's access charges: Electricity for traction" is available from the ORR Library, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ. Telephone 0171 282 2001; fax: 0171 282 2045; e-mail: rail.library@orr.gsi.gov.uk. The document can also be found on the ORR website: http://www.rail-reg.gov.uk/.

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