On Tue, 9 Jan 2007 17:08:04 -0000, "Mizter T"
wrote:

TfL's offer to the National Rail (NR) Train Operating Companies (TOCs) to
fund the £20 million cost of installing equipment to allow Oyster
Pay-as-you-go (PAYG, a.k.a. Pre-Pay) isn't open ended, and the deadline -
the 31st of January - is fast approaching. It would appear the Mayor is keen
to bounce the TOCs into signing up to the deal.

See this TfL press release:
http://www.tfl.gov.uk/tfl/press-cent....asp?prID=1037

The full release on the Mayor's site is a tad more revealing and also
includes a wonderfully inaccurate statistic about gate throughput.

http://www.london.gov.uk/view_press_...eleaseid=10389

[snip]

I wasn't aware there was a deadline to the Mayor's offer to pay for
installation of the Oyster kit, at least not such an immediate one. I'm sure
there are a number of reasons why TOCs might be wary of Oyster PAYG. However
two of the TOCs strongest arguments against getting involved have now been
largely nixed.

If you think about it it does make sense to have a deadline but I wasn't
aware of it until today. Without it some TOCs would "negotiate" until
their franchises expired when it will become mandatory upon reletting by
the DfT.

One reason the TOCs were diffident - that they'd lose the opportunity to set
their own fares - no longer exists, as the DfT decreed that from the 2
January just gone all London rail fares were be zonally priced. Another
possible reason for the TOCs objection, that of fraud, has largely been
neutered by the fact that passengers using Oyster PAYG (on the Tube and the
few participating NR routes) are now penalised if they don't touch-in *and*
touch-out for each and every journey they make - thus providing a very
strong incentive for them to pay the right fare, and a strong disincentive
to anyone attempting to abuse the system. There are other arguments, but I
don't think any of them are really that convincing, especially when weighed
against the advantages that rail passengers would benefit from.

I think you might be underestimating the issues the TOCs have. This is
about money and information about customers - both crucial to TOCs.
Issues such as apportionment, settlement, commission, equipment
maintenance / reliability, card management and usage / customer data
were big issues years ago. Now the thing is real and working and
passengers are voting with their feet in some cases TOCs will be feeling
the effects of Oyster. For those not under the DfT "cosh" of new
franchises they have a lot to play for and I suspect they are testing to
see whether £20m can be made to become £30-40m. Ken is at risk of making
himself a hostage to fortune as he does not have the power to compel
acceptance and there are legally binding agreements sitting in the
background that have to be dealt with if we are not to see things get
worse rather than better.

It remains to be seen whether the Mayor's brinkmanship will win over the
TOCs - we shall see.

Indeed it does. I hope we get to the right place with this but I suspect
there'll be no settlement until the very last minute.
--
Paul C


Admits to working for London Underground!