Explanatory note

This Order amends the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001 (S.I. 2001/319) (“the 2001 Order”). The 2001 Order is a block exemption order under section 6 of the Competition Act 1998 (c. 41) (“the Act”), which gives effect to the recommendation originally made by the Director General of Fair Trading that public transport ticketing schemes (as defined in the 2001 Order) for local transport services constitute a category of agreements which are likely to be agreements to which section 9(1) of the Act applies. Agreements which fall within the category specified in the 2001 Order are exempt from the prohibition in Chapter 1 of the Act.

The 2001 Order was amended by the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2016 (S.I. 2016/126) to extend its duration so that it would cease to have effect at the end of the period of twenty-five years commencing on 1st March 2001. On the recommendation of the Competition and Markets Authority this Order varies the 2001 Order so that it will continue without a fixed duration.

Article 2 also amends the definition of “connecting service” to make clear that the definition includes the long distance parts of trunk bus services (which are in effect, long distance services which have some parts operating as local public transport services). This would mean that where passengers are using a trunk bus service to travel longer distances, so distances of 15 miles or more from their starting point, the travel operator could offer passengers a long distance add-on. Where passengers use a trunk bus service to make a local journey of less than 15 miles from their starting point, this would fall outside the definition of a long distance service and therefore a connecting service, and instead be treated as a local public transport service for the purposes of a short distance add-on.

Article 2 also omits the definition of “working day” in the 2001 Order. This amendment is incidental or supplemental and is intended to ensure that the definition of “working day” for the purposes of the 2001 Order is consistent with that in section 59(1) of the Act.

Article 2 also amends the review requirements in the 2001 Order to ensure that the Secretary of State is required to review the Order by 1 January 2031 and afterwards at five-year intervals.

A full Impact Assessment has not been prepared for this instrument as no adverse impact on business, charities, voluntary bodies or the public sector is foreseen.