• Netherlands: fare increases in 2024 have already impacted travellers, with further hikes expected in 2025. Indeed, Dutch Railways (NS) intends to raise train fares by more than 8.7% from 2025 onwards.

• Furthermore, the government has directly awarded a new 9-year Public Service Obligation contract (‘PSC’) to state-owned NS to operate the Main Rail Network from 2025 until 2033

• costing the taxpayer €1.38 billion more than beforehand.

• But it is still not finalised: an infringement procedure is ongoing. Market opening would be better – for both passengers & taxpayers.

In addition to the fare increases, taxpayer subsidy will increase by €1.38 billion (compared to previously). How is this calculated? :

○ Until 2024, NS paid €86 million per year back to the Dutch government. Over the next nine years, this annual dividend will be lost.

○ But also, in 2024, NS will receive an additional €125m in taxpayer money, another €42m in 2025, as well as €13m-17.5m in PSO taxpayer subsidy for every remaining year up to and including 2033.

○ Moreover, in the new PSC, NS may receive a further taxpayer compensation of €410 million in the case of fewer passengers, and an unlimited taxpayer compensation in the case that future NS competitors’ commercial services result in over 1% loss of revenue.

Yet in 2016, the Dutch government also agreed to the EU 4th Railway Package, which (from 2024 onwards) forbids subsidised PSCs for services that can be operated profitably (as was the Main Rail Network until 2023), and requires a market analysis before any award – which never happened.

ALLRAIL’s Katharina Dekeyser says: “The direct award of this new PSC, which starting 2024 is ‘suddenly’ no longer profitable and needs subsidy, is not finalised – an infringement procedure is still ongoing.

The new PSC for NS will cost more – for both passengers and taxpayers. It is time to cancel this inefficient award while it is still possible to do so.”