Regulation 8

For the rules specified in Schedule 1 (Rules for the determination of fees charged for the use of railway infrastructure) there shall be substituted the following rules:—

“1

Subject to rules 2, 3 and 4, a fee for the use of infrastructure shall include, and shall include only:

(a)

an amount equal to the estimated costs reasonably attributable to the operation of trains in pursuance of the agreement under which the fee is payable; and

(b)

an amount determined in accordance with rule 2 in respect of a share of estimated common costs.

2

The amount referred to in rule (1)(b) shall be such amount as may be determined by agreement between the infrastructure manager and the person by whom the fee is payable or a person acting on his behalf.

3

A fee may be increased or decreased by an amount determined by agreement between the infrastructure manager and the person by whom the fee is payable or a person acting on his behalf to take account of special or exclusive rights to use the infrastructure granted to the person by whom the fee is payable or to any other person.

4

A fee may be increased or decreased, in accordance with any performance incentive regime agreed between the infrastructure manager and the person by whom the fee is payable or a personacting on his behalf, by an amount so determined.

5

In this Schedule—

• “common costs” means the costs incurred by the infrastructure manager in operating his railway infrastructure which are not attributable to the operation of trains on that infrastructure by any particular railway undertaking or international grouping;

• “costs” include the costs of operating the control and safety systems, of providing or renewing capital assets, of a rate of return on capital invested in the infrastructure, of the payment of value added tax and administrative costs and other overheads; and

• “infrastructure” means railway infrastructure.”.