Deploying Business Logic for Railway Infrastructure Charging

Abstract

The policy of the European Commission indicates that charges for rail infrastructure should be related to the costs actually incurred, define incentives for more efficient use of the infrastructure, avoid discriminating against users, and allow public authorities to verify compliance with these objectives. European Commission Directives 2001/12/EC and 2001/14/EC define a general framework for the establishment of charges for the rail infrastructure; however, enormous difficulties have arisen in calculating marginal costs and allocating the full costs of the infrastructure to cost drivers. Over the years and as the need for infrastructure managers (IMs) to adopt a more commercially oriented attitude developed, it became vitally important for every IM to understand the link between accounting and charging, requiring the adoption of a business logic that ensures that the cost drivers are well identified and controllable and that investments are made by taking into account future needs. In fact, to face future needs, the cost accounting framework for railway infrastructure should deliver important background information for establishing charges. The framework should also allow comparison of the costs and revenues for each market segment in determining the services on which business activities should be focused and the levels of public funding required to fulfill public service obligation agreements as part of multiyear contracts with predefined levels of service. Finally, cost accounting frameworks for the railway infrastructure should also deliver accurate information for the regulator to ensure equity and fairness in railway market access. The main task for the regulator will be to check that the resulting differentiation of track prices is free of discrimination.