Skyrocketing energy prices make rail transport more expensive

2022/03/24 at 12:26 PM

Rail transport in Europe is becoming more expensive. This is a result of skyrocketing prices for electric energy. Trying to compensate for the growing energy prices, Lineas will be the first European rail freight operator to introduce a dynamic energy surcharge for its services.

As the largest private rail freight operator in Europe, Lineas has set the pace for the rail sector. Starting from 1 April, the Belgium-based company will implement apply a dynamic energy surcharge to all its transports. Such a measure is common for other modes of transport but completely new for railways. As Lineas noted, the spot price per megawatt-hour at EEX, Europe’s leading energy market, has more than tripled compared to average prices in 2021.

Lineas freight train, source: Lineas

Moreover, diesel fuel has also become more expensive. All of this forces the company to review prices for its services. “Everybody sees how energy prices are soaring when driving to the gas station. Rail companies are suffering massively, too. We cannot continue to be the only mode of transportation that doesn’t pass on the rising energy costs,” said Lars Redeligx, CCO of Lineas.

How will it work?

Being a dynamic surcharge, the new fee will change monthly on a basis of energy prices and taking into account possible energy compensations by national authorities. Lineas will publish the current figures on its official website. “The surcharge differs between domestic and international transports to account for differences in how energy is charged to railway undertakings in different markets. At the current spot price of 300 euros per megawatt-hour, the surcharge will range between 3,5 per cent in the Netherlands and 8,1 per cent in Germany,” the Belgian railway undertaking added.

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