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No. 299084
Anonymous
17th May 2012 Thursday 11:53 pm
299084

>>299069
Pricing for rail tickets is nothing out of the ordinary. You see exactly the same thing in any other business with similar demand patterns, like airlines or hotels. Peak, super-peak and off-peak pricing, designed to fill as many seats at the best possible price. It's basic business.
Large commercial customers like factories pay for electricity on an adaptive pricing system, where the cost-per-unit varies minute by minute with demand. This turns out to have a miraculous benefit.
The British electricity business has a weird trait that exists nowhere else in the world, called the "TV pickup". During the ad breaks in Coronation Street or The X Factor, demand for electricity suddenly surges by about 40%, because millions of people simultaneously put the kettle on. This demand surge is incredibly difficult to deal with, because it all happens faster than a gas power station can spin-up. The grid has to somehow meet that extra demand, so we built a load of hydroelectric facilities to provide instant-on capacity. We even import power from France, using transmission lines that were installed solely to cope with the TV pickup.
Adaptive pricing is starting to change all that. Many factories now schedule their production systems around TV ad breaks, to use as little as possible of that expensive super-peak power. Many of them schedule shift-patterns or breaks to suit, or pause very energy-intensive processes like welding or electrolysis. The factories are happy, because they pay less overall for the same amount of electricity. The National Grid is happy, because they don't have to fork out for a ton of extra infrastructure to cope with the TV pickup. We're happy, because the costs of that infrastructure don't get passed on to us.
The railways face almost exactly the same issue. Peak commuter services are running at the absolute limit of capacity, but trains an hour earlier or later have plenty of space. There's just no way to fit more trains into that window of peak service without creating safety issues, due to braking and signalling distances. It wouldn't be difficult for companies to change from a fixed 9-5 schedule to a flexi schedule, to allow some of their employees to start at 8am or 10am. This would take the strain off the railways and allow their employees to buy cheaper season tickets, which would implicitly pass on a wage saving to their employers. This is exactly what we're expecting to see during the Olympics, when London rail routes will be loaded far beyond capacity.
The flipside of monstrously expensive peak-time fares is the dirt-cheap advanced saver fare. If you're prepared to fill a seat that nobody else wants, you can get it for buttons. The simple evidence for the success of that policy is that Virgin have fewer empty seats than any BR route pre-privatisation.
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