Rail commuters face 20% rise in ticket prices as cap is axed - Evening Standard
"Roy Badami" wrote in message
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.
Why would this be necessary? By allowing higher fare increases, the
government would have to provide less subsidy under cap and collar
arrangements. As many TOCs are currently getting collar support, this
would automatically fall if TOC revenues rise by more than the rate of
inflation.
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