Local transport authorities (LTAs) in England that are engaged in Enhanced Partnership (EP) work with bus operators should ensure that measures that form part of EP rollout are not introduced overly rapidly. Failure to do so could have consequences via the mandatory competition test, the Competition and Markets Authority (CMA) has warned.
Such an observation is within wider advice for LTAs involved in EPs that was published online on 9 May. CMA is a statutory consultee for any new or varied EP. It has issued the document to take account of Bus Service Improvement Plan work in England.
Advice is provided in the document on numerous areas, with an emphasis on CMA working collaboratively with LTAs. In a commentary section, CMA explores a number of common measures that come with EPs, such as ticketing and price caps, passenger charters, and transition periods.
For the latter, CMA warns that where measures such as vehicle emission requirements or payment technologies are introduced “too quickly,” it may negatively affect the ability of some operators to compete.
“This is of particular concern where it might lead to the exit of otherwise viable operators that are able to adapt… but need time to do so,” the advice notes.
So far CMA has reviewed “over 50” draft EP plans and schemes. That has seen what the Authority describes as “high-level feedback” provided to LTAs on common topics and “specific commentary” on less common matters. Some LTAs have sought informal advice from CMA on “more novel and ambitious” EP measures, which the Authority welcomes.
The bespoke, three-stage competition test considers the effect on competition via the creation of variation of bus enhanced partnership plans. CMA stresses that it does not want LTAs or bus operators to be deterred from introducing partnership arrangements that may benefit passengers through baseless concerns that such work may breach competition law.
In December 2021, the Department for Transport outlined to operators the importance of them collaborating with LTAs and each other on Enhanced Partnership development.
