Rail Regulator Cuts Fees to Boost Competition on Eurostar Route

The UK’s Office of Rail and Road (ORR) has instructed HS1, the operator of the high-speed rail line linking London to the Channel Tunnel, to reduce its Eurostar fees by 3.8% annually until 2030. This move, expected to save train operators around £5 million a year, is seen as a step toward encouraging new competition for Eurostar on the cross-Channel route.

Per a statement from the ORR, the fee reduction applies to both passenger and freight services using the 109-kilometer route that runs from London’s St Pancras station through Kent to the Channel Tunnel. The regulator’s decision aims to promote long-term growth in rail traffic, including the potential entry of new operators to the high-speed line.

The directive requires HS1 to lower charges related to asset renewal, station maintenance, and day-to-day operations. According to ORR, better management of the line’s infrastructure could help achieve cost savings, ultimately benefiting passengers and freight customers. “While ORR’s determination is separate from decisions on access to HS1, it assumes long-term growth in passenger traffic,” the statement noted, adding that lower charges could help support this expansion.

HS1 initially disagreed with the scale of the reductions proposed by the ORR. However, the regulator concluded that the company’s financial plans did not fully align with its duty to spend efficiently.

Feras Alshaker, ORR’s director of planning and performance, said in a statement, “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.” He added that while the company’s overall strategy was sound, specific adjustments were needed to align with the regulator’s recommendations.

Source: Travel Weekly