With a letter sent to the Region, Federconsumatori asked for official clarifications on the new Service Contract for public rail transport of regional and local interest for the period 1 January 2024 – 31 December 2033, which was stipulated with direct assignment to Trenitalia SpA through the Council resolution no. 503 of 21 December 2023.
With the direct award, the Region agreed to terminate the previous Service Contract 2017-2026 early and replace it with a new contract 2024-2033. By doing all this through a direct award, the Region, however, postponed the first tender for the assignment of a very important public service by 7 years. The current monopolist, therefore, will remain so for another 10 years.
Federconsumatori Sicilia became aware of this fact on 14 February 2024, during a meeting at the Infrastructure and Transport Department of the Sicilian Region which, however, concerned a completely different topic. The Association immediately expressed its disappointment at this choice.
Federconsumatori’s doubts are now confirmed in a letter sent by the Competition and Market Guarantor Authority (AGCM), published in the latest bulletin of 20 May. The AGCM, essentially, criticizes the Region on all fronts: direct assignment was not at all mandatory, it was not necessary and will not even be advantageous for travellers.
The AGCM, in fact, notes several “competitive critical issues” and denies that the Region had appropriate reasons to proceed with a new direct award, moreover early, because it could simply update the Economic and Financial Plan of the 2017-2026 Service Contract.
According to the Authority, however, the Region’s behavior “has determined a situation in which regional rail transport in Sicily will continue to be managed by the historic monopolist for another ten years, with the consequence of further postponing the completion of the tender for the assignment of the service, in contrast with the general principles to protect competition and the market”.
Furthermore, the AGCM accuses the Region of giving too short notice: the public communication of the new assignment was made only 3 months in advance and not, as required by current legislation, a year.
The result of this behaviour, the AGCM further writes, is that of “having generated a competitive prejudice by further procrastinating the completion of the tender for the assignment of the service”.
Furthermore, to these very solid observations and criticisms of the AGCM, Federconsumatori adds others that are no less important.
In the new Service Contract the Region accepts an increase in the cost of tickets as early as 2024 and without any “Price Cap” constraints. The Price Cap is a mechanism that puts a ceiling on increases, tying them to the size of the investments made by Trenitalia and the satisfaction shown by travellers. But, in Sicily, a method to detect this satisfaction has not yet been developed.
Also in the new CdS, the powers of control over the quality of the service entrusted to consumer and commuter associations are reduced.
The new Contract, among other things, was written and approved without consulting (let alone notifying) the associations for the protection of the rights of consumers, passengers and people with reduced mobility or disabilities.
Federconsumatori Sicilia, in its letter to the Region, listed several changes to the new Contract that it considers essential. The AGCM, for its part, has asked the Region for explanations on how it intends to overcome the critical issues encountered.
The association believes that the direct and early assignment of the public rail transport service of regional and local interest carried out by the Region in favor of Trenitalia SpA is a very serious fact and detrimental to the interests of consumers, especially those economically, socially and physically weaker.
We are now awaiting the Region’s response.
