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Competing applications for access rights on the East Coast Main Line

Document Summary

A letter from DfT to ORR summarising their estimate of the impact of East Coast open access services on DfT's revenue.

This document was published on 20th January 2006 by Department for Transport.

It was written by Department for Transport.

The original document format was PDF File, and comprised 2 pages.The original document can be found here.

This document was kindly sourced from Department for Transport under the Freedom of Information Act and is in our Letters & telegraphs collection. It was added to the Archive on 16th September 2006.

Copyright Information

This document is Crown Copyright, and is subject to the terms governing the reproduction of crown copyright material. Depending on the status and age of the original document, you may need an OPSI click-use license if you wish to reproduce this material, and other restrictions may apply. Please see this explanation for further details.

"There is a range of possible financial risk to the DfT. The risk and impact on DfT increases if GNER fail to achieve their target revenue. The likelihood of revenue support being triggered and franchise viability being brought into question also increases if GNER fail to achieve their target revenue.

DfT could face a risk of up to [ ] per cent of the level of abstraction, and could face significant financial risk if the viability of the GNER franchise necessitates DfT having to re-tender the ICEC franchise before it is contracted to end.

Conclusion
The value of the ICEC franchise, revenue support and franchise viability could be affected if options one and two were implemented. Only option three would ensure that there is no effect on funds available to the Secretary of State."