Review of the Rolling Stock Leasing Market Investigation Order 2009
Date published: 19 December 2014
Closing date: 16 February 2015
In December 2014 we sought stakeholders' views on the operation of the Rolling Stock Leasing Market Investigation Order 2009 put in place by the Competition Commission (the CC) following its Rolling Stock Leasing market investigation.
Passenger rolling stock represents both a key resource and a key cost to the rail industry (rolling stock charges totalled £1.5bn in 2012/13). One of ORR's five strategic objectives is to promote an increasingly dynamic and commercially sustainable sector. Competition between the Rolling Stock Leasing Companies (ROSCOs) is therefore an important issue for us.
We received 14 consultation responses including the views of TOCs, ROSCOs and other interested parties.
In light of the evidence available and the consultation responses, we have reached the following conclusions:
- The Order has, in at least the large majority of cases, been complied with and been broadly successful on its own terms.
- Relatively few responses suggested to us a widespread belief that the Order, without other changes, has the potential to deliver materially better outcomes than it has done already‟ Stakeholder views on the impact of the removal of non-discrimination are in the main fairly positive.
- Views on the overall picture, i.e. the extent of change since 2010, are fairly mixed, with no very clear theme emerging from the relatively small number of consultation responses that we received.
Given the first two of these points, we do not intend to commission an audit of ROSCO compliance with the Order at this time. We will, however, keep the potential need for a review under consideration, and going forward will remain interested in any stakeholder representations on this issue.
ORR has a duty to keep under review the provision of railway services. This includes rolling stock which in line with our statutory duty we will continue to keep under review. With this in mind, we would welcome continuing discussion with interested stakeholders on this important aspect of the provision of railway services.