1. Policy and regulatory framework of rail passenger services in the EU
Praha 12 November 2018
Dr Libor Lochman
CER Executive Director

2. The rail system
The EU rail passenger market is a composite system, where commercial and PSO services are liberalized, and must coexist under equitable conditions to provide services to all EU citizens

3. Domestic market open to competition in 2018

4. Structure of EU passenger market

5. A variety of mixes of PSO and commercial traffic
UK / Practically all traffic under PSO («Franchising»). Few commercial services
RO / All traffic under PSO, except for few touristic and international trains
BIGGEST COUNTRIES (FR/DE/IT) / Long-distance: Commercial vs Regional under PSO

6. A variety of PSO award methods…
UK / All PSOs tendered, with very few services under open access
France / All PSO traffic under direct award
IT / Both direct award & tendering on PSOs

7. A variety of PSO award methods…
RO / Direct award for all PSO
CZ / 92% PSO, both direct award & tendering on PSOs
SK / Direct award on both PSO contracts. 93.6% of all lines under these two PSCs
PL / About 70% of traffic under PSO, both via direct award and competitive tendering

8. Contract duration

9. Rolling stock ownership
Owned/leased by the operators
Owned by the State
Owned by the operators (open access) or authorities/state (PSO)

10. Source: PSO brochure, July 2017, in-house data collection
PSO compensation
‘No compensation payment may exceed the amount required to cover the net financial effect on costs incurred and revenues generated in discharging the public service obligations, taking account of revenue relating thereto kept by the public service operator and a reasonable profit’
Source: PSO brochure, July 2017, in-house data collection

11. Regulatory Body The REGULATORY BODY has a role to play:
The role of the Regulatory Body is to make sure that the «Essential Functions » (e.g. « capacity allocation ») are well performed
The Regulatory Body can act as a « Body of Appeal »

12. Types of regulatory bodies

13. Intermodal conditions
Even provided an adequate level of infrastructure and service financing, no rail passenger service can work if intermodal conditions are not fair.
Infrastructure access charges are a key variable in the equation. But also fiscal conditions and passenger rights policy are pivotal for a fair intermodal competition.

14. Dr Libor Lochman
Executive Director