At a time when they are increasing taxes and reducing benefits, the Government has every reason to encourage (or even force) private companies to limit price increases.
Train operating companies (TOCs) receive income from two sources - the taxpayer (see How much!) and the rail traveller. It doesn't look like there's any change on the former, but they are allowing major increases on the latter. This year is covered by the old formula, RPI +1%, but future increases will be higher.
Why? There's talk of the rail fare increases being imposed now funding the future purchases of rolling stock, but the list of routes that are due to receive the new trains don't include London Midland. Sorry, but I don't understand...
One final thought. When it suits the Government they have been switching pricing formulae from being calculated against Retail Price Index (RPI) to being Consumer Price Index (CPI) based (e.g. with pensions). This means lower increases. For rail fares, despite the review of the formula, we remain RPI based. Why?
Can anyone help make sense of this? I know I can't.
See ATOC press release - Train companies confirm fare changes for 2011
.
Posts
No comments:
Post a Comment
Please feel free to add your own views or questions. Unfortunately we have been receiving a lot of spam in recent months so have had to change the settings to disallow anonymous comments.
If you wish to submit a response to any of the postings on here and find that you are unable to do so for technical reasons then feel free to drop a line to eustoncommuter@gmail.com