Passenger firms welcome ORR call for HS1 Ltd to reduce operator charges

Passenger train operators using HS1 have welcomed the Office of Rail and Road (ORR) order for charges to be lowered.

HS1 Ltd has been told to reduce how much it charges operators as part of ORR’s Final Determination of the company’s spending plans from April 2025-March 2030.

The regular has said overall charges should come down by £5 million a year, which includes charges for renewing track assets and stations, as well as day-to-day operation and maintenance.

ORR has said Eurostar’s annual charge could be £47.9m rather than £49.5m.

In a statement, Eurostar welcomed the decision, saying: “In recent years, these charges have risen significantly above the rate of inflation, which has put pressure on our ability to invest in the stations and infrastructure needed to support our future growth plans.

“This decision provides us with the financial headroom to make critical investments that will enhance the customer experience and ensure the long-term sustainability of high-speed rail connectivity between the UK and continental Europe.”

Meanwhile Southeastern’s annual charge is set to drop from £81m to £77.7m.

A spokesman for the operator said: “We will examine how the Office of Rail and Road’s decision to reduce the cost to operate on High Speed 1 could benefit customers, including the potential for additional services.”

Potential rivals to Eurostar also had their say on the decision. Virgin’s Phil Whittingham described the reduction as “a step in the right direction” for a route that is “ripe for change”.

Meanwhile, an Evolyn statement said any such reduction “is always beneficial to operators. And should also be beneficial to travellers”.

However, it said infrastructure costs are “still very high” compared to countries such as France or Spain.

Responding to ORR’s Final Determination, HS1 Ltd’s Chief Strategy and Regulation Officer, said he was pleased ORR had endorsed its plan for the next five years and the firm could “Now look forward to seeing how the lower cost to operators drives growth”.

He added: “Our plan for 2025-2030 includes proposals to enhance efficiency and reduce the cost of operating the high-speed line, incorporating innovations like track deterioration modelling to better target renewal investments. These innovations have enabled us to propose a 16.5% reduction for operators of international traffic and 11-12% for those handling domestic routes, which we strongly encourage operators to pass on to passengers trough more competitive fares or improved services.”