NR’s cost allocation method runs into trouble

Network Rail’s plan to change how the network’s fixed costs are apportioned between train operators has attracted a heap of criticism from public transport authorities and freight operators.

Andrew Forster

05 January 2018

Network Rail’s new method for allocating fixed costs between train operators could prompt a renewed debate about the future of secondary routes and branch lines, the Urban Transport Group has warned.

The method, developed by Brockley Consulting (LTT10 Nov 17), loads more of the industry’s fixed costs onto regional operators and freight, with a reduction in costs borne by intercity operators (see table). Network Rail has been consulting on whether to use the method to allocate fixed...