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Information broken down by: DfT franchised train operator
The total cost of operating the rail network for train operators franchised by Department for Transport (DfT) in the financial year ending 2015 was £10.5 billion, which is £0.2 billion higher than last year. This consisted of £7.4 billion of train operator operating costs, and £3.1 billion of Network Grant paid to Network Rail. Note that the cost of running the whole rail network will have been higher than this as it would include the costs of train operators not franchised by DfT.
The costs of running the passenger rail network by DfT franchised train operating companies are shown below.
Source: Office of Rail and Road (ORR), DfT
1 The East Coast ended on 1 March 2015 when Virgin Trains East Coast took over the franchise.
2 The First Capital Connect franchise ended on 14 September 2014 when Govia Thameslink Railway took over the franchise.
These data are based on the ORR study “GB Rail Industry Financial Information”, which in turn sourced data from the operators’ management accounts.
Any figures relating to premia or associated payments to the Department for Transport or Passenger Transport Executives are excluded. Within this total are payments made by operators to Network Rail for access to the rail network which contribute towards infrastructure costs.
Operators may not treat all aspects of operating costs in the same way in their accounts, and so care should be taken when using these figures.
There is no recognised rule for allocating the Network Grant across franchises. The distribution of Fixed Track Access Charges has been used to allocate the Network Grant by train operator. This differs from the method used by ORR in its GB Rail Industry Financial Information reports.