Thread: Rail commuters face 20% rise in ticket prices as cap is axed - Evening Standard
View Single Post
  #7   Report Post  
Old October 19th 10, 12:51 AM posted to uk.transport.london
Roy Badami Roy Badami is offline
external usenet poster
  
First recorded activity at LondonBanter: Dec 2008
Posts: 280
Default Rail commuters face 20% rise in ticket prices as cap is axed - Evening Standard
In article ,
wrote:
In article , (Roy
Badami) wrote:

In article ,
Clive D. W. Feather wrote:
Um, won't that breach the present franchise agreements?

Presumably the gov't will negotiate (or legislate) a variation in the
franchise agreements that will balance lower subsidies/higher premiums
with an increase in the fares basket cap, such that the overall
package is revenue-neutral on the TOCs.

That could be more expensive than it seems if cap and collar applies to
most of the franchises

I'm not sure why. By definition it would be calculated to be revenue
neutral, so any increase in fares collected will effectively go to the
exchequer.

-roy
Reply With QuoteReply With Quote