PERIODIC REVIEW OF RAILTRACK'S ACCESS CHARGES: FINAL CONCLUSIONS VOLUME II Published by the Office of the Rail Regulator October 2000 Periodic review of Railtrack's access charges: Final conclusions Volume II Contents Appendix F: Calculation of capacity charge ...................................................................... 1 Appendix G: Calculation of fixed charge......................................................................... 11 Appendix H: Calculation of the Schedule 8 payment rates ............................................ 29 Appendix I: Periodic review notice (track)..................................................................... 38 Appendix J: Periodic review notice (Railtrack independent stations)........................... 42 Appendix K: Periodic review notice (franchised stations)............................................. 54 Appendix L: General approval (Railtrack independent stations)................................... 82 Appendix M: General approval (franchised stations)................................................... 100 Appendix N: Template Schedule 4: Possessions regime ............................................. 120 Appendix O: Template Schedule 7: Charges ............................................................... 171 Appendix P: Track usage price list............................................................................... 246 Appendix Q: Traction electricity price list ................................................................... 254 Appendix R: Incremental output statement price list.................................................. 256 Appendix S: Template Schedule 8: Performance regime ............................................. 266 Appendix T: Station long term charges ........................................................................ 305 Periodic review of Railtrack's access charges: Final conclusions Volume II Appendix F: Calculation of capacity charge 1. The capacity charge will be applied to all franchised passenger train services to recover the expected increase in “congestion costs” imposed on Railtrack by additional traffic. These costs arise because additional services reduce Railtrack’s ability to recover from an incident and also increase the probability of delays, both of which increase Railtrack’s expected costs. 2. This appendix sets out the method of calculating the capacity charge referred to in paragraph 2(f) of the Review Notice (see Appendix I). It therefore: · describes the methodology by which the congestion costs associated with a particular route section at a particular time of day are calculated; · sets out the way the Regulator requires these estimates to be converted into capacity charges; and · describes the assumptions which the Regulator requires to be used in calculating the charges. The calculation of congestion costs 3. The capacity charge will be a pre-determined tariff, by which Railtrack will recover its expected congestion costs. It will replace the present case-by-case negotiations on charges for new or varied access rights. These costs represent the expected increase in Railtrack’s payments under the performance regime attributable to an additional service. The charge will be calculated using a statistical analysis of the relationship between capacity utilisation and delay, on which previous periodic review documents have consulted. Given this relationship, the payment rates in Schedule 8 of the franchised passenger track access agreements will be used to calculate the expected impact on Railtrack’s costs. 4. The calculation of the capacity charge tariff will be done on the basis of the NID (National Infrastructure Database). This is a detailed model of the railway network, down to the level of individual tracks and routes through stations and junctions. Encoded within the NID are the relevant aspects of the Rules of the Plan and other related information, so for every track there is data about headways, linecodes and directionality. Railtrack will use raw data from the BIFS and PALADIN databases (archives from the TRUST recording system) together OFFICE of the RAIL REGULATOR • October 2000 1 Periodic review of Railtrack's access charges: Final conclusions Volume II with geographical information from the NID to calculate delay per train and capacity utilisation indices on the basis of the NID network. From this information a statistical regression can be conducted to calculate a route specific parameter (“b”) and a geographical section specific constant (“A”). 5. The statistical regression carried out for each of the routes specified in Table F.1 will be of the following form: Dit = Ai exp(bCit ) where: Dit is the delay per train on route section i, in time band t; Ai is a constant term estimated for each route section i; Cit is the index of capacity utilisation on the route section i in time band t; and b is the estimated co-efficient for the route in question. 6. The Ai co-efficients and the bs will be used to calculate the costs per train mile at the level of the sections in the NID. The version of these co-efficients which will be used for the purpose of defining the Capacity Charge Price list will be calculated on the basis of data from the NID. These will then be aggregated and averaged to the level of the geographic tariff sections (see below) to provide a pence per mile estimate applicable to the tariff section. 7. Delay will be measured as congestion related reactionary delays (“CRRD”), as identified within the TRUST recording system under some of the “Y” attribution codes, as identified in Table F.2. 8. The capacity utilisation index for each route section i in each timeband t (Cit) will be calculated by Railtrack and be based on the NID. It will be based on the number of trains on the track and the headway of the relevant track (as defined in the applicable Rules of the Plan currently in force). It will also take into account the speed mix of trains already running over the applicable route section, the order of trains already running and infrastructure constraints (e.g. platform constraints, turnarounds and bottlenecks such as a two track section within a stretch of four track line). The Regulator expects Railtrack to continue to October 2000 • OFFICE of the RAIL REGULATOR 2 Periodic review of Railtrack's access charges: Final conclusions Volume II refine the collection of suitable data into the NID such that the accuracy of future estimations of capacity utilisation indices can be improved. This should include, for example, where the Rules of the Plan are altered. 9. The Schedule 8 performance rates will then be applied to the calculated expected increase in delay caused by an additional service to provide the congestion cost estimate. For that service on each section i, for each timeband t (as explained in Chapter 9) this expected cost will be calculated by Railtrack on the basis of half the Schedule 8 performance rate, with the remainder of the expected cost being recovered through the fixed charge. 10. The tariff will therefore be derived from the following equation: Tit = Nit × PR × F × Dit where Tit means the capacity charge tariff for route section i in timeband t; Nit means the number of trains running over route section i in timeband t; PR means the relevant payment rate; F means the relevant Railtrack percentage fault; and Dit means the predicted delay for route section i in timeband t of adding an extra train from the statistical process described above. OFFICE of the RAIL REGULATOR • October 2000 3 Periodic review of Railtrack's access charges: Final conclusions Volume II Table F.1: Routes for the calculation of the capacity charge West Coast Main Line Branches West Coast Main Line Main East Coast Main Line Branches East Coast Main Line Main Great Western Main Line Branches Great Western Main Line Main Midland Main Kent Main Birmingham Chiltern Main Northern Trans Pennine Wales and Borders North East Scotland Strathclyde & Glasgow – Edinburgh West Anglia Great Eastern LTS Brighton and Kent Branches Brighton Main South West North London Lines Manchester, South and West Yorkshire Cumbria North West and South West Scotland October 2000 • OFFICE of the RAIL REGULATOR 4 Periodic review of Railtrack's access charges: Final conclusions Volume II Table F.2: Applicable “Y” Coded delays (“CRRD”) Code Cause Abbreviation “YA” Lost path – regulated for train REG–ONTIME running on time “YB” Lost path – regulated for another REG-LATE late running time “YC” Lost path – following train running FOL-ONTIME on time “YD” Lost path – following another late FOL-LATE running train “YE” Lost path – waiting acceptance to TO S/LINE single line “YF” Waiting for late running train off OFF S/LINE single line “YG” Regulated for late running high CORRECT REG priority train “YO” Waiting due to platform/station PLATFORM congestion or platform change The form of the capacity charge 11. The cost estimates will be calculated for each route section i, and divided by the length of that section in miles. The geographical tariff sections will be defined so as to reflect the operational use of the network, including any important station or junction as an end point to a tariff section and also applying an end point to a tariff section where over 25% of trains turn off at a junction. Operators have been consulted on the proposed tariff sections and those tariff sections on which the charge will be calculated will be placed on the ORR public register following confirmation resulting from the calculation of the draft charges.