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By European Conference of Ministers of Tran
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Additional resources for Railway Reform and Charges for the Use of Infrastructure
Sample text
The second philosophy starts from the concept of the infrastructure manager as a commercial organization needing to recover its costs. Whatever costs are not funded directly by the state need to be shared out among users of the infrastructure in an efficient and equitable manner. This approach to pricing is referred to as full cost recovery after receipt of grants (FC–). The sole exponents of this approach in Western Europe are Germany (60% cost coverage) and Italy (40% cost coverage). In Germany, the approach is applied to all costs except some investment costs; in Italy it is only applied to train planning and operations.
RAILWAY REFORM AND CHARGES FOR THE USE OF INFRASTRUCTURE – ISBN 92-821-0351-X – © ECMT 2005 45 ISBN 92-821-0351-X Railway Reform and Charges for the Use of Infrastructure © ECMT 2005 Chapter 3 Issues in the Choice of Access Charging Regimes RAILWAY REFORM AND CHARGES FOR THE USE OF INFRASTRUCTURE – ISBN 92-821-0351-X – © ECMT 2005 47 3. 1. Basic choices in access charging There appear to be three basic approaches to setting rail infrastructure access charges, as discussed above: ● The European Commission’s preferred approach is that rail infrastructure users be charged only the Social Marginal Cost (SMC) of their use of the infrastructure, with member State contributions covering the difference between SMC and the full, long-run Financial Cost (FC) experienced by the infrastructure manager.
A true fixed charge will be a lump sum for access to the infrastructure (possibly related to the route length accessed, as with the two-part tariff that used to exist in Germany). Fixed charges are attractive inasmuch as they permit mark ups without distorting the incentives to train operators regarding the number and types of trains to run. Unless the fixed element is designed carefully it may create distortions by preventing some operators from accessing the system at all and by biasing the terms of competition between large and small operators.