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How rail companies make money from delays

Train operators make millions of pounds each year from delays caused by unplanned service disruption..

By admin , in UK , at February 27, 2018

Train operators make millions of pounds each year from delays caused by unplanned service disruption, which includes bad weather.

Network Rail, which owns, operates and develops Britain's railways, compensates train operators when there are delays caused by circumstances which fall under Schedule 8 of the Office of Rail and Road's regulations.

This means train operators receive money when their timetables are affected by unplanned service disruption, such as adverse weather, trespass or suicide, causing a delay of more than one minute.

It is designed to compensate the train operators for loss of earnings.

Disruption caused by these issues are attributed to Government-owned Network Rail, which is responsible for maintaining tracks.

In the 2016/17, Network Rail made payments to 22 rail companies, including Virgin West Coast, Southern, Abellio Greater Anglia and London Underground.

The total amount of compensation paid to these companies was £180,947,882.

Image:London Underground received £24m in compensation

However, only £74m of this pot was used to compensate delayed passengers, according to figures analysed by the Press Association.

Campaigners have called for automatic compensation to be introduced across the rail industry, to ensure more passengers receive what they are entitled to.

Stephen Joseph, chief executive of the Campaign for Better Transport, said: "Passengers see train operators profiting from delays and are rightly angry.

"What we need is automatic delay-repay, already run by some companies, rolled out across the system and for the Department of Transport (DfT) to stop blocking much needed fares reform."

More from UK

As well as Network Rail compensating train companies under Schedule 8, it also works the opposite way.

If the fault is with the rail company, for example if a train breaks down and blocks the line, the company will have to pay Network Rail.

Original Article


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