PART IIIACCESS AND TRANSIT MATTERS

Allocation bodies

10.—(1) The Secretary of State shall, after consulting the International Rail Regulator and such allocation bodies and infrastructure managers as appear to him to be appropriate, designate one or more infrastructure managers to be allocation bodies and specify the classes or descriptions of applications for access or transit rights in respect of which each such manager is to act as the allocation body.

(2) As soon as practicable after designating an allocation body pursuant to paragraph (1) the Secretary of State shall procure publication of a notice in the Official Journal of the European Communities containing the following particulars—

(a)the name of the allocation body and the address to which applications for the allocation of infrastructure capacity should be sent; and

(b)the classes or descriptions of applications for access or transit rights in respect of which the allocation body is to act as such.

(3) Any allocation body and any infrastructure manager shall ensure that such capacity is allocated on a fair and non-discriminatory basis.

(4) The Secretary of State may give directions to any allocation body or infrastructure manager for the purpose of ensuring that priority in the allocation of infrastructure capacity is given to rail services provided—

(a)pursuant to Council Regulation (EEC) No 1191/69 on public service obligations in transport(1); or

(b)wholly or partly operated on infrastructure constructed or developed for specialised high speed or freight services.

(5) Where the Secretary of State has given a direction pursuant to paragraph (4)(a) which imposes a particular allocation of infrastructure capacity in the interests of public service, and which results in an infrastructure manager sustaining financial loss, he shall pay to that manager such compensation in respect of the loss as the Secretary of State thinks fair and reasonable in the circumstances of the case.

(6) The Secretary of State may give directions to any allocation body or infrastructure manager requiring the grant of access or transit rights to railway undertakings providing particular types of services or providing services in particular areas if in his opinion the grant of such rights is indispensable to secure the provision of adequate public services, the efficient use of railway infrastructure or the financing of new railway infrastructure.

(7) It shall be the duty of any person to whom the Secretary of State gives a direction pursuant to this regulation to comply with and give effect to the direction.

(8) Each allocation body and infrastructure manager shall in allocating infrastructure capacity have regard to any guidance issued by the International Rail Regulator after consultation with the Secretary of State.