1 Passenger rail services are provided by train operating companies under franchise agreements which generally run for 7-10 years. Responsibility for the operation and condition of the track rests with Network Rail. Strategic decisions on major investment, which also affect service to passengers, are the responsibility of the Department for Transport (the Department). Under the Railways Act 2005, the Department also took over responsibility for the oversight of passenger rail franchising following the abolition of the Strategic Rail Authority (SRA).
2 The Department's rail franchising objectives have broadly been to provide a safe, reliable and efficient service for passengers that is affordable and value for money. In under three years, since taking over from the SRA, the Department has re-let eight of the sixteen rail franchises that it manages (see Figure 1). Rail passengers have experienced a change of train operator on six out of the eight franchises, along with changes to fares and services. The report examines the:
■ franchise competitions (Part 1);
■ impact on the taxpayer (Part 2);
■ impact on the passenger (Part 3); and