Joint Market Response to Draft Principles on Penalty Modulation Under the European Framework for Capacity Management

The development of the European Framework for Capacity Management, as required by Regulation (EU) 2026/1184, is progressing as Infrastructure Managers publish draft principles for the modulation of penalties and seek feedback from operational stakeholders.

This topic has direct financial impact on users of the infrastructure. Therefore, the European associations representing operational stakeholders other than infrastructure managers have conducted a comprehensive assessment of the draft principles and submitted a joint response to Infrastructure Managers.

In their detailed position paper, the associations underline the importance of establishing a penalty regime that is transparent, balanced, and supportive of an efficient and customer-oriented rail sector. The joint feedback focuses on four key requirements:

  • Significant Change: A clear and objective definition of “significant change” is needed as the basis for triggering penalties. The definition should be reciprocal and adequately reflect customer impacts.
  • Transparency: The publication of modulation factors should be harmonized and transparent, with the methodology subject to stakeholder consultation.
  • Time Stamp: For infrastructure manager-related penalties, the relevant time stamp should be linked to the allocation of an alternative train path rather than the initial notification of a potential change.
  • Simulation: The proposed modulation mechanism should be tested through a joint simulation involving infrastructure managers and applicants to verify its practicality, fairness, and effectiveness before implementation.

Beyond their assessment of the draft proposal, the associations have also developed an alternative approach to penalty calculation. Their proposal aims to create more market-oriented incentives that encourage the efficient use of railway infrastructure while ensuring fair treatment of all stakeholders and takes inspiration on the system currently used in France.

The associations remain committed to constructive dialogue with Infrastructure Managers to ensure that the future European Framework for Capacity Management supports a competitive, reliable, and customer-focused rail system.

 

Further Information

The full documentation is available below: