ORR back-tracks on Biomass charging

This from the Rail Freight Group...

Rail Freight Group (RFG) today welcomed the ORR’s decisions on freight charges announced as part of the Draft Determination of the Periodic Review 2013.

As part of a package of reforms, ORR have concluded that;

• Biomass will not be subject to a new freight specific charge in control period 5.
• Increases in the variable access charges for freight will be capped at an average 10% compared to the 23% previously announced.  This is likely to reduce charges for intermodal traffic, and limits the impact of rises in the bulk markets such as aggregates and steel.
• The proposed 400% increase to the capacity charge for freight will not be implemented and a revised approach will be developed.
• The previously announced caps on the freight specific charge for ESI coal, iron ore and spent nuclear fuel will be reduced.  For ESI Coal, for example, the cap will reduce from £4.04 to £1.04 per kgtm.

Maggie Simpson, RFG Executive Director said today "We are pleased that ORR has listened to the concerns of the industry and has taken a balanced decision that is affordable and fair.  This will be a great relief to rail freight operators, customers and those seeking to invest in the sector who can now develop their business plans with confidence."

A good result!

RfG showing how lobbying should be done.

UPDATE: This from Steve Strong...

Bit of an embarrassing climb down from ORR then?

Presumably no one bothered to salute this when they ran it up the flag pole?