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Regulator to monitor transparency of rolling stock information

22 February 2010
ORR/07/10

From today, the Office of Rail Regulation (ORR) will monitor new rules to ensure rolling stock leasing companies (ROSCOs) provide train operating companies (TOCs) with transparent information.

Following an ORR referral in 2007, the Competition Commission (CC) investigated the market for the leasing of rolling stock for franchised passenger services and set out a series of measures aimed at improving competition last April. The CC’s Order requires rolling stock companies to be more open in their supply of information to TOCs during the leasing process, promoting choice and encouraging more informed negotiation.

Under the new rules ROSCOs will now be required to provide annual compliance statements to ORR.

The regulator will commission independent audits of ROSCO compliance, and could ultimately enforce the Order through the courts if necessary.

John Thomas, director railway markets and economics said: “We are committed to ensuring that markets functions as effectively and efficiently as possible.

“It is important that train operators have ready access to full information from rolling stock companies to help them get best value. Our monitoring of the Competition Commission’s transparency Order will ensure that this is happening.”

Guidance for ROSCOs and TOCs is available within the CC’s order.

Notes to editors

  1. A copy of the letter sent to stakeholders is available on our website: http://www.rail-reg.gov.uk/upload/pdf/roscos-decision-letter-220210.pdf
  2. TOC and ROSCO queries regarding compliance with the transparency order should be sent to: competition@orr.gsi.gov.uk.
  3. The Competition Commission (CC) published its report Rolling Stock Leasing market investigation on its investigation into the market for the leasing of rolling stock for franchised passenger services on 7 April 2009. This report can be found on the CC’s website: http://www.competition-commission.org.uk/rep_pub/reports/2009/546roscos.htm  
  4. A copy of the Order can also be found on the CC’s website: http://www.competition-commission.org.uk/inquiries/ref2007/roscos/pdf/notice_of_making_of_order221209.pdf
     

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