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Payments to train operators for rail disruption

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Railway flooding – described as the ‘worst in a decade’ – in the south-west of England resulted in about £12.5 million in compensation being paid, the BBC reported.

But that was a report dated 31 May 2013, about flooding that happened in November and December 2012. And the compensation was paid to train and freight operating companies by Network Rail, because services could not run due to the lines being put out of action.

So the costs to the public purse of the winter 2013 / 2014 flood and storm railway damage may not be confined to paying for restoring the track.

Why contracts were written so as to compensate train operating companies for what might be called Acts of God, has never been explained.

TOCs are also contractually entitled to be compensated for disruption from works to improve rail capacity and reliability. Such compensation was a major cost in the West Coast Route Modernisation programme.
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When proponents of HS2 refer to the ‘cost’ of upgrading existing lines, they are referring to an artifice created by the contract and interface structure of the railway industry.

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Written by beleben

February 14, 2014 at 11:06 am

Posted in HS2, Planning, Politics

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