LONDON. Jan 06/Agencies/ – Eurostar has been urged to reduce ticket prices for routes from Britain to the Continent after the rail regulator announced a reduction in charges for operators using the high-speed line from London St Pancras to the Channel Tunnel. The Office of Rail and Road (ORR) stated that the cost paid by operators to use the High Speed 1 (HS1) line for the next five years starting in April should be cut by 10.4%.
Domestic Southeastern services, which also operate on the high-speed line between London and Kent, and within Kent, as well as freight trains heading to and from the Channel Tunnel, will benefit from the reduced charges. East Midlands Railway trains, which run in and out of London St Pancras, are also impacted by this decision.
Mattias Bjornfors, HS1 Ltd’s chief strategy and regulation officer, explained, “Our plan for 2025-2030 includes proposals to enhance efficiency and reduce the cost of operating the high-speed line, incorporating innovations like track deterioration modelling to better target renewal investments. These innovations have enabled us to propose a 16.5% reduction for operators of international traffic and 11-12% for those handling domestic routes, which we strongly encourage operators to pass on to passengers through more competitive fares or improved services.”
However, Eurostar indicated that the savings would be allocated towards improvements at St Pancras International rather than cutting ticket prices, citing that prices had not increased in line with previous rises in the cost of using the high-speed line. Eurostar stated, “We welcome the ORR’s decision to instruct HS1 to reduce track access charges on the Eurostar route. In recent years, these charges have risen significantly above the rate of inflation, which has put pressure on our ability to invest in the stations and infrastructure needed to support our future growth plans. This decision provides us with the financial headroom to make critical investments that will enhance the customer experience and ensure the long-term sustainability of high-speed rail connectivity between the UK and continental Europe.”
Demand for seats on Eurostar services has surged since the end of coronavirus travel restrictions, despite an increase in fares. St Pancras International has struggled to handle the increased passenger numbers, leading to calls for services to also stop at Stratford International in east London.
HS1 is owned by a group of private investors. The ORR’s review of HS1’s latest spending plans led to the decision to lower access charges. The ORR explained, “The company is being directed to reduce its charges for renewing its track assets and its stations, including St Pancras. It must also reduce its charges for its day-to-day operating and maintenance of the railway. ORR was able to identify specific areas in the company’s spending plans where further improvements can be made, resulting in savings to passenger and freight train operators. ORR’s view is that better management of the track and station assets can result in lower charges, ultimately benefiting customers.”
Feras Alshaker, the ORR’s director for planning and performance, stated, “Our thorough, independent review of HS1 Ltd’s spending plans has resulted in significantly lower costs for passenger and freight train operators using the high-speed line from April 2025. Although, overall, HS1’s original plans were good, the company must now change specific areas of those plans to account for our decisions, which should benefit everyone who uses this railway.”
