High Speed 1 (HS1)

The Channel Tunnel Rail Link Act 1996, as amended in 2008, disapplies the UK national economic regulatory regime from HS1. During the passage of the 2008 Act the Government made a commitment that, as far as possible, the operation of the line should be subject to the normal regulatory supervision. To effect this commitment, the Railways Infrastructure (Access and Management) Regulations 2005, which gave effect to European directives, and under which we already have responsibility for appeals concerning access to High Speed, were amended in May 2009 to give us additional responsibilities concerning the economic regulation of HS1, starting in October 2009.

Following discussions between ourselves and the Department for Transport (DfT) a regulatory framework has been established designed to meet this commitment, whilst recognising the specific circumstances of HS1. We have recently consulted on our approach to the regulation of HS1 through a draft regulatory statement ( 131 Kb). The consultation closed on 23 September. Following the completion of this consultation we made some changes to this statement which are explained in our letter of 30 October 2009 ( 1710 Kb).

ORR’s new responsibilities will cover approving terms of access by train operators to use the line, periodic review of the charges for operation, maintenance and renewal of the infrastructure, and ensuring the effective stewardship of the network by HS1, the operator of the line. Some of these responsibilities are given effect in the concession agreement which has been entered into by HS1 Limited, but others do not come into effect until 1 October 2009. The key elements of this regulatory framework are:

• a new function for us from 1 October 2009 in the pre-approval of all new framework agreements and of revisions to any existing framework agreements (i.e. track access contracts covering the reservation of capacity for more than one timetable period) for use of High Speed 1 following the recent changes to the regulations. This is in addition to the appeal role we have in respect of the terms of track access and more widely under the regulations;
• a new responsibility for us from 1 October 2009 under regulation 13 to ensure that HS1 Limited, with due regard to safety and maintaining and improving the quality of infrastructure service, is provided with incentives to reduce the cost of provision of infrastructure and the level of access charges. This will be achieved through the company’s obligations under the concession agreement and the rights and responsibilities conferred on us as a result of that agreement which include:
• provision for periodic reviews by ORR of the operation, maintenance and renewal charges;
• a general duty in respect of asset stewardship in the agreement, requiring the company to secure the operation, maintenance, renewal and replacement of the railway infrastructure in accordance with best practice and in a
• timely, efficient and economic manner, and with a long-term (40 year) view. This is similar to that in Network Rail’s network licence, but reflects the specific circumstances of HS1;
• enforcement powers for our functions based on those in the Railways Act 1993; and
• an extension of our statutory information gathering powers to our new responsibilities by means of a change to the regulations.

We have also entered into a memorandum of understanding ( 108 Kb) with the Secretary of State in respect of our performance of this role.

We expect to regulate access to HS1, as far as possible, in much the same way as we do the national network. We recognise that there are some fundamental differences and several more minor differences between the HS1 network and the national network. As such, it will not be appropriate to treat access applications in the same way.

Our regulation of HS1 reflects the specific circumstances of HS1 and the HS1 network, and is not intended to create any expectation about our approach to regulation of the Great Britain national network, or other networks, including any future high speed line 1.

In recognition of this, we have consulted on our criteria and procedures for the approval of track access agreements on HS1.

The consultation closed on 8 July 2010, and we will publish our final conclusions and the criteria and procedures document by the end of summer 2010.

On 19 June 2009, as part of an industry wide consultation, we received a suite of documentation from High Speed 1 Ltd relating to the arrangements it proposed to put in place in relation to:

1. commercial and regulatory matters, setting out the key principles and main changes to the current HS1 Network Statement, the structure and level of access charges, the proposed performance regime and the proposed regulatory framework, including ORR’s future role;
2. operational matters relating to the proposed terms and conditions for gaining access to HS1 and the Network Code;
3. dispute resolution; and
4. the key terms of the proposed framework track access agreements with EUKL and LSER.

Given our future role, HS1 and DfT asked us to confirm whether we would have been prepared to approve these agreements (and the Network Code) had our role been in effect. On 14 August, after extensive discussions with both HS1 Ltd and DfT we confirmed that if our powers concerning approval of these agreements had been in effect, and if Eurostar UK Limited (EUKL) and London and South Eastern Railway Limited (LSER) were content to enter into the agreements, we would have been prepared to approve them. As indicated in that letter we will shortly be publishing our reasons document.

HS1 Access Dispute Resolution Rules

Part I of the HS1 Network Code includes a requirement for HS1 Limited to review its Dispute Resolution Procedure. On 23 June 2010, ORR received a Proposal for Change from HS1 Limited for the implementation of the HS1 Access Dispute Resolution Rules ("HS1 ADRR"), and related changes to the HS1 Network Code, the HS1 Passenger Access Terms and the HS1 Railway Systems Code ("HS1 Access Documentation").

On 12 July 2010, ORR approved ( 1762 Kb) the Proposal for Change ("HS1/PfC1"). Download the HS1 ADRR ( 356 Kb), and the related changes to the HS1 Network Code ( 118 Kb), HS1 Passenger Access Terms ( 57 Kb) and HS1 Railway Systems Code ( 59 Kb).

Further details about HS1, including copies of relevant documentation, are available from the HS1 website.

Consultants' reports

• HS1 cost review report by Ove Arup & Partners Ltd ( 365 Kb)
• HS1 cost review appendix by Asset Management Consulting Limited ( 111 Kb)
  

Last updated: 15 July 2010

Related documents