ORR receives complaint provision of rolling stock
Office of Rail Regulation receives complaint regarding the provision of rolling stock
London, United Kingdom – The Office of Rail Regulation (ORR) has been informed that it will 2006-06-28 receive a complaint under the Enterprise Act 2002, from the Department for Transport (DfT), alleging that features of the market for the provision of rolling stock to passenger train operating companies (TOCs) prevent, restrict, or distort competition.
Sarah Straight, ORR’s Director of Rail Markets, Passengers and Freight said:
"We will now conduct a market study to see whether there are grounds to suspect that the rolling stock market may not be working well. We expect to complete our study by the end of October, at which stage we will publish our findings. As part of our study we will consult widely with the rolling stock companies, TOCs and other interested parties to understand their views and any concerns they have about this market.
"Our study has a number of potential outcomes, which might include considering the issues for a longer period by undertaking a full market review lasting between six and twelve months. We could conclude that the market (or markets) for rolling stock leasing has a clean bill of health and so close the complaint.
“We could decide there is sufficient evidence to support a formal reference to the Competition Commission for full scrutiny under the Competition Commission’s market investigation powers. The study could also reveal the need for further investigation under the Competition Act 1998, triggering an extensive investigation to see if there have been breaches of competition law."
- 1. The Office of Rail Regulation (ORR) was established on 5 July 2004 under the Railways and Transport Safety Act 2003. ORR is an independent statutory body led by a Board.
- 2. The ORR has concurrent power with the OFT to make a reference to the Competition Commission under Part 4 of the Enterprise Act 2002.
- 3. The three-month market study has a number of potential outcomes including the possibility that the market (or markets) for rolling stock leasing has a clean bill of health. Alternatively ORR may decide that it has sufficient evidence to support a reference to the Competition Commission for full scrutiny under the Competition Commission’s market investigation powers. Should the study reveal the need for further investigation under the Competition Act 1998, ORR will act accordingly.
- 4. ORR may decide at the end of its market study that it needs to consider the issues for longer and may, in accordance with its own guidelines, undertake a full market review lasting between six and twelve months.
- 5. Further information on ORR’s procedures for reviewing markets can be found in ORR’s approach to reviewing markets www.rail-reg.gov.uk/server/show/ConWebDoc.8159
- 6. Rolling stock provision is not a service regulated under the Railways Act 1993 (as amended). As such ORR has no role in the day-to-day economic regulation of such companies. From 1st April 2006 ORR additionally became the independent health and safety regulator for the railway industry, including rolling stock operations.