Latvian Railways under infringement procedure for lack of transparency

The Latvian State Railway Administration has started an administrative infringement procedure against the railway company Latvijas Dzelzcels for keeping information from the supervisory authority by repeatedly ignoring the administration’s inquiries about details of the costs included in the calculations of the new railway infrastructure fees that are to take effect on 1 January 2018. LatRailNet, a subsidiary of Latvijas Dzelzcels, has decided to raise the fees for use of the public railway infrastructure fees as of 2018, including a 7% increase of the fee for railway freight.
The State Railway Administration needs these details of the costs to check whether the planned increase of the railway infrastructure fees is substantiated. “This is the first time in the history of the Latvian railway industry when a state-owned company has refused to supply information requested by a supervisory authority. Faced with such unprecedented incident, the State Railway Administration feels forced to take sanctions of which it had warned in its repeated requests for information,” the head of the State Railway Administration, Juris Iesalnieks, said. Under the Administrative Offenses Code, the fine for this offense may be as high as EUR 14,000.

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