What is the purpose of the charge?
The purpose of the charter slot charge is to recover Network Rail’s costs for activities undertaken specifically for charter services for which it is not otherwise funded.
What costs are recovered through the charge?
This includes gauging activities, maintenance and operational costs, such as paying for additional operational staff to operate ground frames for charter trains to access branch lines.
Who is subject to the charge?
Operators that run charter services pay this charge.
How is the charge structured?
Charter slot charges are set according to the type of traction, with discounts for repeat business. The table below provides the breakdown of charges in CP7.
Table 3: Charter slot charge in CP7 (2023/24 prices)
Description of Service | Charge (£ per bid) |
---|---|
Loaded Train or Empty Coaching Stock (ECS) Train hauled by Diesel or Electric Equipment or consisting of Electric Multiple Unit (EMU) or Diesel Multiple Unit (DMU) | 425.26 |
Train hauled throughout or in part by Steam Driven Equipment | 1,025.58 |
Repeat Business Slot Charge | 76.01 |
Source: CP7 Track Usage Price List (Charter Slot Charge)
The first two charges cited in the table above are for one-off charter services. The repeat slot charge aims to recover the same costs as the ‘one off’ charge but is considerably lower reflecting the fact that the cost will be less for each subsequent repeat of a series of identical journeys, within the same timetable period. This is because the gauging activity for running a given charter service on a particular route will have already been done once and the costs do not need to be recovered again.
In the event of a cancellation by Network Rail or the train operator, a cancellation charge shall apply as defined in the Track Access Contracts for Charter Passenger Services (Part 2, Section 5). The party cancelling the Service shall pay the charge.
Cancellation charges are designed to recover the proportion of the slot charge that has already been incurred, such as the gauging activity, before the decision has been taken to cancel the train.
How is the level of the charge calculated?
The charter slot charge is calculated depending on the type of traction. The single steam slot charge is higher than the charge for diesel and electric because gauging activity is more complex for steam. Additional operational activity is also required to enable a steam service on the network. Table 3 above shows the level of the charge per bid as determined for CP7.
The cancellation charge is calculated as a proportion of the slot charge and varies in accordance with the timing of the cancellation (the later the cancellation, the higher the charge).