What does it cost?

An application fee of £250 is payable to ORR for each licence application in accordance with the Railways (Licence Application) Regulations 1994 and the Railway (Licensing of Railway Undertakings) Regulations 2005. No fee is required in respect of applications for exemptions.

In addition to the licence application fee, an annual fee will be levied on licence holders during the currency of the licence to fund ORR’s activities. This is calculated by reference to the actual turnover on licensed activities such that larger operators make a greater contribution to the work of regulation.

A nominal fee of £350 per annum is currently payable by those operators whose licensed activities are incidental to their main business, for example infrastructure maintenance contractors.

There are other costs associated with the various licence conditions; including for example, the premium required to purchase third party liability insurance and the cost involved in becoming a signatory to the Claims Handling and Allocation Agreement (CAHA).

CAHA

There is no charge to become a signatory to CAHA, but there is a minimum charge of £500 per annum to cover the administrative costs of the registrar.

The Railway Industry Dispute Resolution (RIDR) Committee oversees CAHA and determines disputes. This attracts a minimum charge of £350 per annum to cover the administrative costs of the RIDR Committee.