Great Western Franchise Agreement
David Hoggarth, strategic rail director at TfN, said: “We have seen considerable progress towards increased surveillance in the North, both since the 2018 scheduling crisis and throughout the pandemic. Local decision-makers have helped and must continue to shape business decisions for the benefit of passengers. These new transition contracts will help us prepare for further reforms, while seeking a more common railway that can better meet the needs of passengers, as reflected in our contribution to the Williams review. If the amount of termination of a TOC cannot be agreed by mid-December, DfT has the right to terminate this ERMA prematurely, with ocD returning from mid-January 2021 to the essentials of all existing deductible conditions. Provided the termination amounts are agreed, the DfT intends to negotiate a new direct award contract under which ocD would provide services after the end of the ERMA. DfT continues to forego the revenue, costs and conditional capital risk of OCD and pays a fixed administrative fee with the potential for an additional results-related charge based on measures such as punctuality, passenger satisfaction and financial performance. The total royalty potential is 1.5% of the maximum cost base of each franchise prior to the pandemic. Franchise agreements and related documents for First Greater Western Limited. The Southeastern franchise will continue to operate as part of its EMA until October 2021 or March 2022, when it will be extended.
A senior industry source told Rail Business UK: “ERMAs are complex and overly prescriptive and overly precise agreements that stagnate any type of development, because every step is through authorisation tires. If there was a case of DfT saying, “We`re going to do what we do right and you`re doing what you can do right” it would be perfect — but right now it`s “we`re going to tell you everything” and it`s not sustainable. For every decision we want to make, additional layers of specifications and authorizations are put in place. Great Western Serves is currently operated by long-time franchisee FirstGroup under a directly awarded contract, announced on March 30 and running until March 2023, with a possible one-year extension. Labour`s shadow railway minister, Tan Dhesi MP, said: “We welcome the government`s acknowledgement that privatization has not worked and that greater public sector participation in railway management is needed,” but called for full public ownership and said that the ERMAs “on the faults of a broken rail system.” The amounts are based on the financial status of each franchise prior to the pandemic and the DfT`s assessment of the DfT`s non-pandemic conduct. The evaluations will take into account the mechanisms for amending the franchise agreement and some other CST contributions. Updated the designation of 6 primary franchise assets to ensure the continued use of car parks at Kemble, Hanborough and Tiverton Parkway by the railway. Dr Alison Moore, Chair of the London Assembly`s Transport Committee, said: “The complex and fragmented model of the rail franchise has clearly not worked for passengers” and called for London rail traffic to be moved to Transport for London. Before the end of the EMA period in June 2021, the DfT has the option of extending the EMA further. GWR also has the right to work with turnover risk, but with protection through the forecast income mechanism until at least 2023.