Refunds for Delayed Rail Passengers

10.56.32am BST (GMT +0100) Tue 13th Sep 2005

Trains at Manchester Piccadilly

Rail passengers can look forward to compensation if their trains are delayed, following a vote by the European Parliament's Transport Committee on 19 April. MEPs are also insisting that compensation - whether cash refunds or vouchers - should be given not just to international rail passengers but also to passengers on domestic journeys, including commuters. And they want cash refunds to be based on a simple, easy-to-understand scale.

The European Parliament has long been a strong supporter of better rail services, hoping to encourage a shift of traffic away from road and air. This would relieve congestion on the roads and in the skies and reduce atmospheric pollution. Over recent decades Europe's railways have lost ground to road and air transport but evidence from the USA, where rail freight has undergone a resurgence, suggests this trend is reversible.

One way of encouraging more travellers to choose the train is to guarantee them clear, simple compensation rates if they don't get the service they paid for. Some EU Member States already have compensation schemes but Parliament's Transport Committee believes EU-imposed minimum rates would lead to fairer treatment for rail travellers throughout Europe.

One result of the Transport Committee's vote is that rail companies will no longer be able to insist on paying compensation in the form of vouchers for further rail journeys. Instead, passengers will be entitled to the following minimum cash refunds if their train is late:

• 25% of the fare for a delay of 60 minutes or more;

• 50% for a delay of 120 minutes or more;

• 75% for a delay of 180 minutes and more.

These cash refunds should be paid within a month of the application being made.

MEPs called for rail season ticket holders who suffer repeated delays or cancellations to be entitled to compensation in the form of free journeys, price reductions or an extension of their season ticket.

This EU law on compensation for delays is just part of a wider package of legislation aimed at improving rail travel standards in the European Union. The legislation is drafted by the European Commission but the Parliament will decide what shape the laws finally take.

Moreover, this is the European Union's third package of rail legislation. Earlier packages introduced competition into international and then domestic rail freight deliveries. They also laid down standard EU-wide rules on safety and technical issues.

Only with the third package is the EU turning its attention to passenger services. Apart from the question of compensation for delays, the third package deals with deadlines for the liberalisation of passenger services, the aim being to allow more competition on international passenger services (and on national networks too, if members of the Transport Committee get their way). Other parts cover compensation for freight customers and a system of certificates to ensure train crews meet minimum professional, medical and linguistic standards.