The rail regulator has opened the door to possible new competition to Eurostar by ordering a cut in fees charged for using the high speed line between London and the Channel Tunnel.
The Office of Rail and Road (ORR) has told HS1 to lower its charges by 3.8% or £5 million a year until 2030 for passenger and freight train operating companies from April.
Announcing the decision, a statement said: “While ORR’s determination is separate from decision on access to HS1, it assumes long-term growth in passenger traffic, including the introduction of new operators, and ORR hopes that its determination of lower charges will support this growth.”
The company is being directed to drop its charges for renewing its track assets and its stations, including St Pancras. It must also reduce its charges for its day-to-day operating and maintenance of the railway, the ORR ruled.
“ORR’s view is that better management of the track and station assets can result in lower charges, ultimately benefiting customers,” the regulator said.
HS1 disagreed with the amount of ORR’s proposed reductions in charges but the regulator “ultimately determined that the company’s spending plans did not meet its duties for efficient spending”.
ORR planning and performance director Feras Alshaker said: “Our thorough, independent review of HS1 Ltd’s spending plans has resulted in significantly lower costs for passenger and freight train operators using the high speed line from April 2025.
“Although, overall, HS1’s original plans were good, the company must now change specific areas of those plans to account for our decisions, which should benefit everyone who uses this railway.”
HS1 is a 109km high-speed rail line that connects London St Pancras through Kent to the Channel Tunnel.