East Coast Railway Line

(asked on 4th December 2017) - View Source

Question to the Department for Transport:

To ask Her Majesty's Government what assessment they have made of the extent to which delays by Network Rail undertaking infrastructure improvements on the East Coast Main Line were a legitimate basis for the existing East Coast franchise operator to seek to reduce premium payments contracted under that franchise; and by what amount that franchise will be reduced in each year until 2023.


Answered by
Baroness Sugg Portrait
Baroness Sugg
This question was answered on 18th December 2017

The East Coast franchise was awarded to Virgin Trains East Coast following a fair and open competition and has already delivered significant passenger benefits. The Operator has met its obligations to date to provide premium payments to HM Government as contracted. The contract includes an enhanced East Coast timetable from May 2020 - reflecting the anticipated Network Rail enhancements to the line - and a process for revising premium payments from that date if the Operator, despite its best efforts, is unsuccessful in obtaining all the rights it needs. The exact adjustments to the premium depend on the extent of the enhanced services which the Operator is able to run from May 2020.

From 2020 we intend to let the East Coast Partnership as one of the first of a new generation of integrated regional rail operations. This will be subject to a competitive process, and will include appropriate contributions paid from the private partner to the government. It is therefore not possible to specify what amount the current East Coast franchise will be reduced in each year until 2023, as it will be superseded by the East Coast Partnership.

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