Ahead of its next periodic review (PR24) of HS1 Ltd, the Office of Rail and Road (ORR) has launched a consultation with stakeholders to obtain their views on the processes and approach to the review.
HS1 is the high-speed rail line that connects London St Pancras through Kent to the Channel Tunnel, and a key of international and domestic passenger rail and freight services between Britain and the Continent.
By Law, the Office of Rail and Road must approve HS1 Ltd's plans and charges for the use of its network and stations.
Following the periodic review, charges for the use of HS1 will be set for the five years from 2025. Those charges will ultimately have an effect on how much passengers pay for their tickets.
In carrying out the review, the regulator must take into account whether HS1 Ltd's plans are both consistent with its obligations for stewardship of the route's assets, and its obligations to ensure that each of the four stations on the route are maintained in good condition.
Among the topics that stakeholders have been asked to consider is the methods used to assess cost efficiency and HS1 Ltd's regulated financial framework, such as its capability to scrutinise its ability to manage financial risks. These include macro-economic risks such as inflation and interest rates, as well as specific risks such as the uncertainty of the supply chain and demand.
Responses to the initial consultation document are to be forwarded to the Office of Rail and Road by 11th November 2022. They will then be taken into account when the ‘Approach to PR24' is produced, which will be submitted to the Secretary of State for Transport on 31st January 2023 and published on the Office of Rail and Road's website.
