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Tariff substantiation by ProRail is still insufficient

Dutch rail infrastructure manager ProRail must improve the substantiation of its tariffs in specific areas. ProRail has until June 1, 2016 to resubmit its tariffs and the substantiation thereof to the Netherlands Authority for Consumers and Markets (ACM). ACM has come to this decision following a complaint about these tariffs filed by four regional rail companies in the Netherlands: Arriva, Connexxion, Syntus and Veolia.

The second time

This has been the second time that ProRail submitted a substantiation for its tariffs to ACM. In July 2015, ACM already established that ProRail had insufficiently explained what part of the maintenance costs and replacement investments for the rail tracks is variable. Variable costs are costs that are incurred for using the rail tracks.

Variable costs have been substantiated insufficiently

Henk Don, Member of the Board of ACM, explains: “We see that ProRail for the most part has properly substantiated its tariffs. However, ProRail has still failed to substantiate sufficiently the percentages for variable maintenance costs of rail infrastructure elements such as bridges, tunnels, and safety installations at grade crossings. For example, the documents underlying these percentages are no longer available. That is crucial information, as ProRail is only allowed to charge rail companies the variable costs.”