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date 27 March 2001
source Office of the Rail Regulator
type Press release

note ORR/08/01

The Rail Regulator, Tom Winsor, has ordered Railtrack to enter into a contract to allow English Welsh & Scottish Railway (EWS) to continue to operate its trains for the next 14 months, from 1 April 2001, when EWS's present five-year contract expires. The Regulator determined the terms of the contract taking account of the industry's views.

Commenting on his order, Tom Winsor said:

"On 21 December 2000 EWS invoked the regulatory remedy of applying to the Regulator for an order requiring Railtrack to enter into a contract on terms which the Regulator, not Railtrack, determined. This is the first time a section 17 case has been followed through to its conclusion and is therefore a milestone in the maturity of the privatised railway industry."

Notes for editors:

1. This 14-month contract ensures that EWS will continue to have regulated access to the network on fair terms until the conclusion of negotiations between Railtrack and EWS for a completely new contract for EWS. The Regulator's direction provides for the release to other freight operators of access rights for which EWS has no continuing commercial need, and also allows time for the Regulator's final conclusions on freight charging to be reflected in the long-term contract between Railtrack and EWS. The Regulator expects to publish his final conclusions on freight charging shortly.
2. The Railways Act 1993 provides that where parties agree the terms of a proposed agreement they will apply to the Regulator for approval under section 18. Where they fail to agree terms, they may use section 17 under which the Regulator is empowered to determine and direct the terms of the contract between Railtrack and the train operator in question.
3. A copy of Track access agreement: Railtrack plc and English Welsh and Scottish Railway Limited will be available shortly from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: orr@dial.pipex.com. The document will be available from the ORR website shortly.
4. Review of Freight Charging Policy: Consultation on Costs, ORR London, November 2000, is available here or from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: orr@dial.pipex.com.
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Railhub Archive ::: 2001-03-27 ORR-001