Economic equilibrium test

In accordance with Article 11 of Directive 2012/34/EU, Member States may limit the right of access to the rail market where that right would compromise the economic equilibrium of public service contracts, provided in accordance with Regulation (EC) No 1370/2007 of the European Parliament and of the Council.

A person who intends to submit an application for capacity allocation for the purposes of passenger rail transport operated without a contract on public services in passenger transport shall notify the Transport Infrastructure Access Authority (hereinafter referred to as „the TIAA“) no later than two months before the submission of the application.

 

The TIAA is the regulatory body, which carries out an economic equilibrium test. This authority of the TIAA is based on

  • Article 55 of the Directive 2012/34/EU of the European Parliament and of the Council, establishing a single European railway area,
  • the Commission implementing regulation (EU) No. 869/2014, on new rail passenger services, particularly Articles 10 to 15 and 19, and
  • Section 34d of Act No. 266/1994 Coll., on Rail Systems.

 

The economic equilibrium of a public service contract shall be considered as compromised, when the proposed new service has a substantial negative impact on:

  • (1) the profitability of services operated under the public service contract, and/or
  • (2) the net cost for the competent authority awarding the public service contract.

 

Pursuant to Article 10 of the Commission implementing regulation (EU) No. 869/2014 the TIAA shall assess whether the economic equilibrium of a public service contract is compromised by the proposed new service. The analysis carried out by the TIAA shall focus on the economic impact of the proposed new service on the public service contract as a whole, not on individual services operated under it, over its entire duration. Predetermined thresholds on specific criteria may be applied but not in isolation from other criteria. The TIAA shall also take into account the benefits to customers flowing from the new service in the short and medium term.

 

The economic equilibrium test may be requested by the following entities:

  • (a) a competent authority or competent authorities that have concluded a public service contract covering a place of departure and a destination of the proposed new service;
  • (b) any other interested competent authority with a right to limit access under Article 11of Directive 2012/34/EU;
  • (c) the infrastructure manager in the geographical area covered by the proposed new international passenger service;
  • (d) any railway undertaking performing the public service contract awarded by the authority referred to in point (a).

The applicants shall send all information in electronic form. The most convenient is to use a data box of the TIAA, ID yhygbyn, or an e-mail address This email address is being protected from spambots. You need JavaScript enabled to view it..

 

The assessment of the economic equilibrium of passenger rail transport is subject to an administrative fee of CZK 1500, according to the administrative fees tariff of Act No. 634/2004 Coll., On Administrative Fees, as amended, item 59a, letter a).

Communication within the procedure shall be carried out and documents executed in the Czech language. Participants in the proceedings may also communicate and file submissions in the Slovak language. Documents executed in a foreign language shall be submitted by the participant in the original along with their officially certified translation to the Czech language. For further information read the section Language of proceedings.

 

Principal Purpose Test

A person who is not established on the territory of the Czech Republic and intends to submit an application for capacity allocation for the purposes of the cross-border passenger rail transport operation shall notify the Authority no later than two months before the submission of the application.

“Person established in the Czech Republic” shall mean the person entitled to carry on business on the territory of the Czech Republic that is entered itself in the business register or the division of which is located on the territory of the Czech Republic. According to the Commission implementing regulation (EU) No. 869/2014 TIAA decides whether the principal purpose of rail passenger services is transport between two or more Member States.