EXTENSION TO 2022 PROPOSED AHEAD OF NEW COMPETITION
THE DEPARTMENT for Transport has announced its intention to extend the current Great Western franchise, held by FirstGroup, until March 2022. It is also consulting on wider plans for the next franchise, including the possibility of splitting the franchise into two separate operations. First currently operates Great Western Railway under a direct award agreement running from September 2015 until March 2019.
DfT intends to exercise the pre-contracted option of a one-year extension to this arrangement and then to negotiate a further direct award agreement with First running until March 2022. This would cover the existing period of substantial change, including electrification and introduction of new train fleets, and allow these services to bed in. It would also provide sufficient time to prepare for a possible split of the franchise when a further competition is held. However, DfT says it is clear that if it cannot negotiate an agreement with First which secures ‘substantial passenger benefits at an acceptable price for the taxpayer’, it will retain the option to revert to a competition in 2020. The consultation moots the possibility of a two-way spli…
