A landmark decision was reached in July this year, one which was widely trailed by the British and European railway industries. Had GNER’s judicial review in Great North Eastern Railway (GNER) v Office of Rail Regulation and others [27 July, 2006] been successful, it would have affected all train operators in the UK, both passenger and freight, and would have required retrospectively revising the charging regime they have followed since April 2001. The case is the first reported in the UK and, among the first in Europe, on Directive 2001/14/ EC. The analysis of the application of the Directive to the UK charging framework will be widely read across Europe.
On 29 March, 2006, the Office of the Rail Regulator (ORR), the independent statutory body that regulates the UK’s railways, granted Grand Central Railway Company the right to run passenger services on the east coast main line between Sunderland and London King’s Cross, calling at York. It also permitted Hull Trains Company to add an additional daily service between Hull and King’s Cross. These new services will compete with GNER’s franchised passenger services. Grand Central and Hull Trains are open access operators (OAOs). Unlike franchisees, OAOs do not have a contract with the state. They receive no subsidy and pay no premiums; they stand or fall on the strength of their consumer proposition.
