Capacity charge baselines for freight, open access passenger and charter operators

In our Periodic review 2013: final determination of Network Rail's outputs and funding for 2014-19, we concluded that the capacity charge would be levied on freight, open access and charter operators in CP5 subject to a number of baselines, so that Network Rail would effectively receive a higher charge for traffic above certain thresholds as part of a year-end reconciliation or wash-up process. Our decisions across all operators can be found in paragraphs 16.194 to 16.205 of our final determination.

In CP5, freight operators will pay the capacity charge for traffic based upon their actual mileage. At the end of each year a reconciliation or wash-up will be carried out. For the purposes of the reconciliation there will be three commodity groups: coal and biomass, intermodal and other commodities; and each commodity group will have a baseline set using 2012-13 actual traffic levels for that commodity group.

Open access operators will pay the capacity charge based on CP4 rates for their existing services (with any anomalies corrected) but will pay equivalent to recalibrated rates for any additional or new services.

During the year, charter operators will pay the capacity charge based on CP4 rates. At the end of each year, a reconciliation will be carried out. For the purposes of the reconciliation, a baseline will be set across all charter operators using 2012-13 actual charter train miles.

In order to implement our decision, baselines are defined for CP5 as follows: three baselines for each of the three freight commodity groups; a single baseline across all charter operators; baselines for each service code for each open access operator.

The purpose of these letters was to update operators on the proposed approach and draft values for capacity charge baselines in CP5, as per the decisions set out in our Periodic review 2013: final determination of Network Rail's outputs and funding for 2014-19.

Further information