Review of the rolling stock leasing market competition remedies


Outcome of our review into the transparency order for rolling stock companies. 

Final report

28 April 2020

We have published our final report outlining our findings, responses to our consultation and our recommendation to not advise the CMA to undertake a review of this remedy.

We found that while there have been significant changes in the market in the last ten years, the original competition concerns identified by the CC have not been alleviated. We consider that the Transparency Order has provided some benefits and its removal would be detrimental. There is insufficient justification for recommending that the CMA undertake a review to assess the merits of revoking or amending the Transparency Order.

We have also published an open letter to industry regarding compliance with the Transparency Order.

Consultation paper

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We have published a consultation paper outlining our approach to the review of the rolling stock leasing market competition remedies, our provisional findings and decision on whether to recommend a further CMA review of this remedy.

We invite comments on the substance of this paper and the following questions:

  1. Do you agree that the changes in the market since 2009 have not alleviated the competition problems identified by the CC?
  2. Do you agree with our decision not to recommend that the CMA undertake a further review of the Transparency Order?

Launch of review of the Rolling Stock Leasing Market Investigation Order 2009

In 2007, following a market study into the leasing of rolling stock, ORR referred the market to the Competition Commission (the CC) for a more in-depth investigation. The CC found a number of issues which restricted effective competition in the market for rolling stock.

To address these issues, the CC put in place two complementary remedies:

  1. An amendment of rolling stock lessors’ Codes of Practice to remove non-discrimination requirements; and
  2. A “Transparency Order “– which required rolling stock leasing companies to provide a set list of information when making any offer to lease (used) rolling stock to operate on franchised passenger services.

The CC’s package of remedies came into force on 22 Feb 2010.

ORR has a role in monitoring compliance, and the effectiveness of, these remedies.

We last undertook a review in 2014 and are again seeking views on the operation of the remedies from all rolling stock leasing companies and TOCs operating in the UK. We are interested in any representations and supporting evidence that interested parties may wish to provide on:

  • The operation of the remedies to date, and the potential impact of the removal of the Transparency Order; and
  • Any substantive changes in the market since the implementation of the remedies – such as the availability of alternative rolling stock and rates of switching.