Review of passenger rolling stock leasing market
The Office of Rail Regulation (ORR) has announced that it is minded to refer the passenger rolling stock leasing markets to the Competition Commission (CC) for further investigation. It is now consulting key stakeholders on its findings before taking a final decision whether to make a reference to the Commission.
Chris Bolt, Chairman of ORR, said:
"Passenger Train Operators spend around £1 billion every year on rolling stock leasing. So the performance of the rolling stock market is an essential element of rail's value for money."
"We suspect that there are features of these markets which are preventing them from operating competitively and that this warrants further investigation by the Competition Commission."
"Before we make a reference, we expect to meet again with all the key parties to get feedback on the findings of our market study, including our initial thoughts on potential remedies."
Frontier (London) is advising one of the ROSCOs on its responses to the ORR and will be closely involved in preparing its case before the CC, should a reference occur.
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