Transport

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What are TOCs?
Private sector firms that run rail passenger services, leasing and managing stations from network rail, receives income from tickets and subsidies
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What are ROSCOs
Rolling Stock companies that own the trains and run the rails, working with TOCs and FOCs to identify the engines, carriages and trucks needed for operations
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Who controls the Infrastructure of the UK's rail system?
Network Rail, private company
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What is a franchise and how many are there?
19- Bid for by TOCs to operate for around 8 years. They offer the highest bid and accept the lowest subsidy
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What is the ORR?
The Office of Rail Regulation is an independent regulator of all aspects of the rail industry ie safety, reliability & efficiency. It monitors Network Rail to ensure it manages track and signalling efficiently and grants TOCs operating licences.
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Rail Industry- what market type and how is it regulated?
Monopoly- Regulated by monitors appointed by the government
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What three methods of regulation are used to monitor the rail industry?
Yardstick regulation, RPI -X-fromula, Rate fo Return
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What are the effects of the long-term contract period for TOCs?
Incentive to Invest, increase in barriers to entry
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Outline the arguments for rail privatisation in the UK
An increase in passenger and freight numbers means reduced subsidy. Increase in quality and quantity of services
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Select the most accurate argument against the privatisation of the UK rail industry
Infrastructure and operations are interlinked. Poor rail track maintenance or coordination of competing services reduces the performance of operations.
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What is Public Service Obligation?
A public service obligation is the subsidy given to TOCs to ensure loss making but socially essential services operate eg rural lines and late night services
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What is Yardstick Regulation?
where the performance of a firm is judged against other similar firms
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What is the RPI- X formula?
In its simplest form, the formula is RPI – X. This means that permitted prices increases are determined by the percentage rise in the retail price index (RPI) minus an amount X, where X is the reduction in price required for the industry as a result
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Other cards in this set

Card 2

Front

What are ROSCOs

Back

Rolling Stock companies that own the trains and run the rails, working with TOCs and FOCs to identify the engines, carriages and trucks needed for operations

Card 3

Front

Who controls the Infrastructure of the UK's rail system?

Back

Preview of the front of card 3

Card 4

Front

What is a franchise and how many are there?

Back

Preview of the front of card 4

Card 5

Front

What is the ORR?

Back

Preview of the front of card 5
View more cards

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