Mr Andrew Haines Managing Director First Group Rail Division 3rd Floor, E Block Paddington Station London W2 1FG

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1 Mr Andrew Haines Managing Director First Group Rail Division 3rd Floor, E Block Paddington Station London W2 1FG Whittles House, 14 Pentonville Road London N1 9HF w t f e info@passengerfocus.org.uk direct e colin.foxall@btopenworld.com 14 December 2007 Our ref: CF0992-AS Dear Andrew First Great Western performance and fares When we met last week we discussed FGW s performance and prospects for its improvement. You said very frankly that the new timetable would not be the answer to everything and that indeed it would take a while to improve performance on the whole franchise. Since then we have had the opportunity to study more carefully the New Year fare rise announcements. Two things seem apparent to us. First, FGW has used the flexibility provided by the fare basket provisions to a much greater extent than is normal; the result is that although you announced regulated fare increases of 4.8% the actual increases faced by some passengers are very far from that figure. I accept that your press notice referred to the fact that increases would vary, but it seems to me that the implications of raising regulated fares by such a wide range casts doubt on the very purpose of fare regulation. It does not seem to us to be reasonable for passengers to face such large increases in any event, but for individual groups of passengers to be selected for such treatment seems, to us, unjust. Second, we have noticed that the fare increases have been applied on journeys which are triggering discounts for season ticket holders under the Passenger s Charter. In many cases the fare rises effectively cancel out the effect of the Passenger s Charter discount. I do not believe that it was ever intended that the fare basket flexibility should be used in this way and again it seems to me to be unfair for some passengers to be deprived of poor performance discounts in this way.

2 Performance on First Great Western s London Thames Valley routes continues to decline. The Passenger s Charter figures for the period up to 8 December show that one in three trains arrived more than five minutes late. The latest PPM figures issued by ORR for FGW show nearly three out of ten FGW peak trains arriving late. In the circumstances I think that FGW should think more carefully about the rises they have proposed particularly where they affect groups who have suffered poor performance. Please find attached examples of randomly selected ticket prices and an analysis of Charter figures that highlight our concerns. Regulated fares are regulated because they apply to passenger groups who have little choice about travelling when they do. Passenger s Charter discounts are there to provide tangible compensation for poor performance. I do not believe that looked at in this light that you would want to argue that the way the fare increase has been made is fair or reasonable. Frankly no business with a fully competitive market could sustain them. We also note that many weekly season tickets have risen by over 9% while longer season tickets for the same journey have risen by 4.8% which makes longer-period seasons much better value. Our research shows, however, that many passengers cannot afford the initial outlay for longer-period season tickets and will be hit doubly hard by this level of increase. We believe this strengthens our calls for direct-debit or season ticket loan schemes to assist passengers who cannot otherwise afford these better-value fares. I ask you therefore to take a hard look at the price increases you have announced and review them. You have begun by trying to bring about much change on FGW. I think you need to back that up by a much fairer message on fares. Yours sincerely Colin 2

3 First Great Western Season Ticket Price Revision Weekly Season % change Monthly Season Jan % Dec change Dec 07 Jan 08 PLYMOUTH & CORNWALL Falmouth Truro Carbis Bay Penzance Menheniot Plymouth Hayle Truro Lostwithiel St Austell Saltash Plymouth Liskeard Par Bodmin Parkway Redruth DEVON Exmouth Exeter Crediton Topsham Dawlish Torquay Ivybridge Newton Abbot Barnstaple Exeter Tiverton Parkway Exeter Totnes Devonport HIGH SPEED Tiverton Parkway Taunton Chippenham Didcot Parkway Pewsey London Swindon Reading Bristol London Westbury London Chippenham Bath Spa Castle Cary Newbury Bath Spa Oxford BRISTOL Ashchurch Bristol Keynsham Bristol Chippenham Bristol

4 Oldfield Park Bristol Frome Bath Spa Severn Beach Bristol Trowbridge Bristol Filton Abbeywood Bristol Yetminster Yeovil Pen Mill Yatton Bristol Dorchester West Westbury Avoncliff Filton Abbeywood Bradford on Avon Westbury Gloucester Bristol Patchway Bedminster SOUTH COAST SOUTH WALES Salisbury Bath Spa Romsey Westbury LONDON THAMES VALLEY Hungerford London Newbury London Goring & Streatley London West Drayton London Slough London Oxford London North Camp Reading Greenford Acton Main Line Southall London Ealing Broadway London Maidenhead London Twyford London Heyford Reading Pangbourne Gatwick Airport Cholsey Hayes & Harlington Reading Ealing Broadway Oxford Maidenhead Henley on Thames London Bourne End London Windsor & Eton Ctl London Slough Ealing Broadway Marlow Slough Marlow Reading

5 Maidenhead Reading Crowthorne Wokingham Cookham Slough Bedwyn Newbury Racecourse Maidenhead Oxford Moreton in Marsh Oxford Evesham Worcester Stroud Gloucester Didcot Parkway London Bicester Town Oxford Islip London Reading London Sources: National Fares Manuals; National Rail Enquiries website - Season Ticket Calculator 5

6 First Great Western Passenger Charter performance results Punctuality Moving Annual Average: Periods (27 May- 10 November) % punctuality Service group P3 P4 P5 P6 P7 P8 Plymouth and Cornwall services Devon services South Wales - South Coast services Bristol Suburban services High Speed Services London-Thames Valley Compensation 'trigger' for High Speed group is 88%. For all the other groups it is 89% As of Period 8 all service groups except the Plymouth and Cornwall group are triggering compensation for season ticket holders in accordance with FGW's Passenger Charter. 6

7 First Great Western Passenger Charter performance results Reliability Moving Annual Average: Periods (27 May- 10 November) % punctuality Service group P3 P4 P5 P6 P7 P8 Devon services London-Thames Valley High Speed Services Plymouth and Cornwall services South Wales - South Coast services Bristol Suburban services Compensation 'trigger' for the High Speed group is 98.2%, 98% for Thames Valley and 98.5% for the other service groups. Bristol, Plymouth and South Wales South Coast service groups are triggering compensation for season ticket holders in accordance with FGW's Passenger Charter. 7

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