(in millions of euros) | 2019 | 2018 |
Dutch train franchises | 408 | 394 |
UK train franchises | 856 | 741 |
German train franchises | 231 | 145 |
Total | 1,495 | 1,280 |
The infrastructure levies and franchise fees for the railways in the United Kingdom include an amount of €18 million (2018: €41 million) relating to the mechanism of Central London Employment (CLE), as included in the Greater Anglia franchise agreement with the Department for Transport (DfT). Within the total registered CLE impact in 2019, an amount of €6 million relates to prior years (2018: €19 million).
Accounting policies
Adjustment mechanisms for UK franchises
The implementation agreement with the Ministry of Infrastructure and Water Management includes a number of adjustment mechanisms for determining the franchise price. The adjustment relating to the average profitability during the franchise is recognised as a receivable when the right arises in accordance with the calculation system, as laid down in the implementation agreement. The adjustment is recognised on a straight-line basis over the term of the franchise. Other payments, one-off or otherwise, under the agreement are recognised on a straight-line basis over the term of the franchise.
Adjustment mechanisms for UK franchises
The franchise agreements, mainly with the Department for Transport, Transport Scotland and the infrastructure operator Network Rail, contain a number of adjustment mechanisms, including that for 'Central London Employment (CLE)', for adjusting the franchise fee and for a compensation for lost revenues due to work on the rail infrastructure. The CLE is an index that is adjusted annually, following which the franchise fee in the financial year concerned can be adjusted for this by the DfT and be reported. The right to compensation for lost revenues and the method of calculating it are contractually determined and recognised in the year in which the loss of revenue occurred on the basis of an estimated calculation.