Date lodged: 6 March 2018
To ask the Scottish Government what its position is on (a) whether compensation from Network Rail to rail operators should be passed on to customers and (b) what should be done with compensation that is paid to rail operators but not claimed by customers.
Answered by: Humza Yousaf 15 March 2018
Train Operating Companies (TOC’s) are compensated via standard industry processes whereby the principle of compensation reflects the direct loss of ticket sales as a result of the works, aiming to leave the operator in a financially neutral position. However, the monies received from Network Rail under the standard industry process do not just cover customer compensation, it covers all of the costs and lost revenue that is borne by the train operator as a result of disruption on the network. This includes staff costs, overtime and other elements such as provision of replacement transport.
As required under the terms of the current Franchise Agreement ScotRail introduced ‘Delay Repay’ which is compensation paid to customers if they face disruption on their journey. It is one of the types of compensation Train Operating Companies offer if journeys don’t go to plan, as well as paying for alternative transport, whole or part refunds or other goodwill gestures. Abellio ScotRail is required to publicise this delay-repay compensation scheme using all available methods including, station announcements, Customer Information screens, website and social media.