The Public Service Obligations in Transport Regulations 2023

The purpose of these Regulations is to set out how competent authorities may act in the field of public passenger transport to guarantee the provision of services in the general interest. To this end, these Regulations set out the conditions under which competent authorities, when imposing or contracting for public service obligations, compensate public service operators for costs incurred or grant exclusive rights in return for the discharge of public service obligations.

A full impact assessment has not been produced for these Regulations as no, or no significant, impact on the private, voluntary sector or community bodies is foreseen.

An Explanatory Memorandum is published alongside the instrument on www.legislation.gov.uk.

Footnotes

Editorial notes

Direct award of bus contracts to incumbent operators

16A

• (1) A franchising authority, or two or more franchising authorities acting jointly, may make a direct award of a public service contract where—

• (a) the contract is a local service contract in relation to a franchising scheme,

• (b) no local services provided in the area to which the contract relates are provided under a local service contract, and

• (c) the award is made to a public service operator who, throughout the period of three months ending with the day on which the contract is entered into, is providing local services which are the same as, or substantially similar to, the local services to which the contract relates.

• (2) Where a franchising authority makes a direct award of a public service contract under this regulation, it must, within six months of granting the award, and while ensuring the protection of commercially sensitive information and commercial interests, publish a notice on its website which—

• (a) sets out the information specified in paragraph (3), or

• (b) where any of the information in paragraph (3) has already been published (whether under regulation 23 or otherwise), provides details of where that information can be accessed,

and, where the award is made by two or more franchising authorities acting jointly, the notice must be published on each authority’s website.

• (3) The information referred to in paragraph (2) is—

• (a) the name of the public service operator, its ownership and, if relevant, the name of the party or parties exercising legal control,

• (b) the duration of the public service contract,

• (c) a description of the passenger transport services to be performed,

• (d) a description of the parameters of the financial compensation,

• (e) information about any quality targets, such as punctuality and reliability and any applicable rewards and penalties, and

• (f) information about any targets or requirements intended to protect the environment or to ensure local services are accessible and inclusive.

• (4) In this regulation, each of the following terms has the same meaning as in Part 2 of the Transport Act 2000—

• “franchising authority”;

• “franchising scheme”;

• “local service”;

• “local service contract”.

General direct award provision for rail

Direct award of rail contracts in exceptional circumstances

Direct award of rail contracts due to structural and geographical characteristics

Direct award of rail contracts when the operator manages the entire or major part of the railway infrastructure

Modifying a public service contract