Companies using RPI to put up prices

daz

daz

daz

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Isn't this a vicious circle? Train companies have announced that they're putting up prices by 5.9% on average, because inflation is running at 5.1%. However, surely a contribution to that inflationary figure, are the train price increases from last year?

I do think that some companies use inflation (RPI/CPI) as an excuse for putting up prices where there has been no corresponding increase in their direct or indirect costs.
 
at least the train companies tell you

tescos club cards help tescos get the optimum price.. no rpi

most british companies are dishonest .. 30 calls made to utilities asking for their lowest tariff only one third given their lowest....

then how corrupt are the mp's and their lobbiest friends.. big transport investment 20 million with half of that will be profits for big companies, and the money coming from the poorest in the country as it coming from tax credits... which in its self is wrong as tax credits is the poor paying the poor to subsidize businessmen/womens comfortable lifestyle... they should just pay a living wage not a minimum wage, which businesses are now using to lower wages at a time when everything is going up..

if you have not seen this then watch this http://www.youtube.com/watch?v=0E70BwA7xgU and now we go to the start as most of tescos profits go to israel
 
The prices are also going up by more so that less of each fare is subsidised by the taxpayer.

My fares actually went down this year because I used oyster PAYG for the first time instead of buying daily tickets (my shifts are odd do no weekly/monthy ticket saves me any money).
 
shine said:
Some of the extra money is used towards paying for improvements in the rail network reducing the amount the government pay towards it. We can pay more in rail fares or tax to fund improvements.
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the idea is for it to be self sustainable eventually. Which means we have to make 5 billions more, roughly what goverment spends every year.
And every year it gets cut. That's just the infrastructure.

The train companies then want new rolling stock, which goverment rightly said they will have to pay for. And customers say they want new trains and/or more carriages.

It's a rubbish system, you can't have direct competition on trains, so should be owned by a single company.
 
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daz said:
Isn't this a vicious circle? Train companies have announced that they're putting up prices by 5.9% on average, because inflation is running at 5.1%. However, surely a contribution to that inflationary figure, are the train price increases from last year?

I do think that some companies use inflation (RPI/CPI) as an excuse for putting up prices where there has been no corresponding increase in their direct or indirect costs.
Click to expand...

Depends on whether transport costs of this kind are included in the RPI calculations. Can anyone confirm?
 
My season ticket is already £3300. I've had no pay rise for the last 2 years, so these increases understandably make me cross. Are they going to keep putting prices up by RPI+1% YOY? There must be a real danger of pricing people off the railway altogether.

It's BS.

This is just eroding my standard of living.
 
Glaucus said:
the idea is for it to be self sustainable eventually. Which means we have to make 5 billions more, roughly what goverment spends every year.
And every year it gets cut. That's just the infrastructure.

The train companies then want new rolling stock, which goverment rightly said they will have to pay for. And customers say they want new trains and/or more carriages.

It's a rubbish system, you can't have direct competition on trains, so should be owned by a single company.
Click to expand...

I agree, I use the Thameslink route regularaly and they are spending a lot improving the stations but the new trains are still a few years away! The railway is something that needs to be run as one company so that the profitable routes can subsidise the unprofitable ones.
 
shine said:
I agree, I use the Thameslink route regularaly and they are spending a lot improving the stations but the new trains are still a few years away! The railway is something that needs to be run as one company so that the profitable routes can subsidise the unprofitable ones.
Click to expand...

At least they have started running 12 carriage trains on part of the Thameslink route now (I think).
 
scorza said:
At least they have started running 12 carriage trains on part of the Thameslink route now (I think).
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They have and one of them is the train I catch in the morning but people won't walk down to the extra carriages so large numbers are still standing in the morning. :p
 
Don't worry, the benefit of privatising the trains was competition, which keeps prices low.
Just like it does with the energy companies!

But we are of course a 'nation of shareholders', so everyone wins anyway!
 
The result of fascist train organisations and centralized pricing structures. No competition in terms of competing train companies, competing track routes.

One quasi public/private company owns most of the track and they grant monopoly powers to quasi public/private train operators and then there is another quasi public/private organisation that handles the centralized pricing system.

No competition will result in higher prices and lower standards, no exceptions.
 
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