In March 2020, the pandemic plunged the country into lockdown and rail passenger numbers fell to record lows. In response, the government placed operators on emergency contracts, and train operators and their employees worked hard to keep key workers and goods moving.
During the pandemic, it was suggested by some stakeholders that emergency contracts led to ‘profiteering’ by train operators. This publication sets out the facts, explaining that operators were placed onto two types of emergency contracts with a mix of fixed and variable payments:
- Emergency Measures Agreements (EMAs, paying a total fee of approximately 2%).
- Around 6 months into the pandemic, Emergency Recovery Measures Agreements (ERMAs, paying a total fee of approximately 1.5%).
These fees were lower when compared to other sectors providing management services, which average 2%-3.5%.
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