UK train operators plead with regulators
It has been revealed today that UK train operators on the verge of being forced to cut ticket prices due to their ongoing pricing formula agreed with the regulator. Almost 50% of UK train fairs are currently under the pricing structure formula which allows train companies to increase prices by 1% above inflation per annum. As we approach the real danger of deflation they could actually see train ticket prices reduced in the short to medium term in line with the agreement.
As you would expect, train operators throughout the UK have been very vocal in their opinions and are pleading with the government and regulators to reduce the shackles of the pricing formula agreement. So far the UK transport Minister Lord Adonis has refused to shift on the matter although we could see a review as and when UK inflation dips below 0%.
It is interesting to see UK train operators running for help from the government after recent months had seen substantial price increases on those tickets not covered by the pricing structure formula. Perhaps now it is payback time for the UK consumer which seems to have been used as a funding pot for the train operators prior to improving their services throughout the country.
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