FirstGroup, which runs rail services to the South West under the First Great Western banner – including the Paddington to Bedwyn and to Pewsey services – is getting a “direct award” to extend its franchise until March 2019 – an extra three-and-half years with a possible extension of a further 12 months at the Department for Transport’s discretion.
The award announced today (October 10) is now subject to negotiations over how much the company will be the company for these extra franchise years.
The extension is to cover the period of electrification of lines and the introduction of new trains. The Department thought it would be too disruptive to change franchise holders while this work was underway.
Under a previous arrangement between the coalition government and FirstGroup, their annual payments for the franchise were reduced significantly. Industry sources are reported to be keen to see what deal will be negotiated this time – as will passengers.
Earlier this week, FirstGroup lost the ScotRail franchise to Abellio – the Dutch company that runs the Netherlands’ nationalised railways. Abellio will run most of Scotland’s rail system for the next ten years.
