“While no key could be rejected today, the future course will depend on financial discussions on FTDs,” the source told Rail Business UK. “The industry has come forward to the ERMAs on the basis of the expression DfT “Trust us” and there is not much confidence at the moment. These negotiations will be difficult; We have every three months to sort out the financial details. The question of whether people are willing to pay the price of switching to franchise agreements and return the keys is a win-win situation for DfT. The best way to do this was to sign the ERMAs and hope that the DfT will act with confidence. It will be a strong commercial discussion, and it has the potential to be painful. Franchise agreements published on GOV.UK may not be the most up-to-date documents held by the department. These documents are part of the public register of franchise agreements. Please email requests for franchise agreements to email@example.com. The amounts are based on the financial status of each franchise prior to the pandemic and the DfT`s assessment of the DfT`s non-pandemic conduct. The evaluations will take into account the mechanisms for amending the franchise agreement and some other CST contributions. “We had a clear vision for the northern franchise, which would better connect northern cities to more frequent, reliable and modern services and free up economic growth. However, it was clear that the franchise plan had become unrecognizable, mainly due to external factors. A new plan is needed to secure the future of northern rail traffic.
That is why we understand the government`s decision today. Each ERMA requires that, by mid-December 2020, ocD agree with the DfT on whether and, if so, how many aid or other payments from the parent company would have been required to terminate existing franchise agreements had the pandemic not occurred. A senior industry source told Rail Business UK: “ERMAs are complex and overly prescriptive and overly precise agreements that stagnate any type of development, because every step is through authorisation tires. If there was a case of DfT saying, “We`re going to do what we do right and you`re doing what you can do right” it would be perfect — but right now it`s “we`re going to tell you everything” and it`s not sustainable. For every decision we want to make, additional layers of specifications and authorizations are put in place. DfT continues to forego OCD revenue, costs and conditional capital risk and pays a fixed administrative fee with the potential for an additional results-related charge based on measures such as punctuality, passenger satisfaction and financial performance.