Chiltern Railway: penalty under S57A of the Railways Act 1993 as amended
Explains a decision to impose a penalty on Chiltern Railways following a statutory consultation process.

I have decided to impose a penalty on Chiltern Railway of 拢350,000, having taken account of the outcome of a statutory consultation process.
皇冠体育app penalty relates to 4 breaches of the terms of the company鈥檚 franchise agreement which occurred before management of Chiltern transferred to Arriva UK Trains in early 2011. 皇冠体育appse involved late delivery of 2 station improvements, and 2 timetable changes which were not properly authorised by the Department for Transport and which could, if unrectified, have significantly reduced the value of the franchise to the department. 皇冠体育appse breaches were in the context of the company鈥檚 poor performance in meeting a number of its detailed contractual obligations over a substantial period.
皇冠体育app department imposes such penalties very rarely. When it does so, the aim is to encourage train operators to comply with their contractual obligations to the department under franchise agreements. It should be emphasised that the penalty does not relate to Chiltern鈥檚 operational performance. As a number of consultees commented, the company is noted for its high standard of performance and customer satisfaction, and for the substantial investment it is making in improving services.
皇冠体育app penalty has been reduced from the proposed level of 拢500,000 in the light of the responses to the consultation, and in particular the welcome and clear assurances from Chiltern that it has stepped up its commitment and oversight at senior management level to ensure compliance with the terms of its franchise.
皇冠体育app receipts from the penalty will be retained by the department and reinvested in transport. No decision has been made at this stage as to the final use of the funds.