Iryo and Ouigo pressure Adif to lower the fees they pay for high speed

Private high-speed operators are giving a new twist to their offensive against Adif to try to reduce the fees they pay to travel on liberalized train tracks.

Oliver Thansan
Oliver Thansan
16 October 2023 Monday 22:39
9 Reads
Iryo and Ouigo pressure Adif to lower the fees they pay for high speed

Private high-speed operators are giving a new twist to their offensive against Adif to try to reduce the fees they pay to travel on liberalized train tracks. Iryo and Ouigo, in a joint action, have commissioned a report from the consulting firm KPMG in which it is revealed that these modal fees paid by the successful bidder companies represent “a brake on the deployment” of high speed.

The debate takes place in the midst of the preparation by Adif of the first fee regulation and in the run-up to the second phase of liberalization of new high-speed rail routes, which could cover the Mediterranean Corridor.

The two private operators that opted for high speed in Spain are pushing for a reduction in fees to prevent them, as in the case of Ouigo, from having to reduce frequencies to make their routes economically viable. The low-cost French capital company is currently maintaining the reduction of 44 frequencies from January 1 between Barcelona and Madrid. Iryo, for its part, has not contemplated such a measure, despite the fact that its occupancy rate is lower.

In the report commissioned 'ad hoc' by Iryo and Ouigo from KPMG, it is concluded that "the high charges have limited demand and with this there has been an underuse of the railway network." With cheaper modal rates, adds the consultancy, demand would increase and, with this, fuel costs, polluting emissions into the atmosphere and accidents on the roads would be reduced.

The proposal proposed by KPMG to adapt future fees is the so-called “market test”, through which it can be verified that operators are capable of supporting the fees through a simulation of their income statement. Their insistence seeks to minimize the damage to their services that lower demand may produce and ensure that the market can accept the proposed surcharges.