BRUSSELS, 5th December 2023: The EU vision for a competitive railway market is under threat. The Czech Republic’s rail regulator, ÚPDI, is on the brink of dissolution, despite a recent court decision on the process of reappointment of the ex-President. Our previous warnings are now a stark reality.
In a dramatic twist, the reappointment of ÚPDI’s ex-President was scrapped at the eleventh hour. The Ministry of Transport’s quick pivot to merge ÚPDI with the National Competition Authority (NCA) under flimsy cost-saving pretexts exposes deeper issues.
It appears that a recent court ruling throws the Ministry’s narrative into disarray. The Czech court found that the Ministry’s actions had been blatantly illegal, flagging them as a direct retaliation against Mr Pavel Kodym, ex-President of ÚPDI. Mr Kodym, now recognised as a whistleblower, had dared to ask the EU Commission about their opinion on potential breaches of European law, which should be one the Regulator’s competencies. The court’s verdict? – The Ministry had engaged in a gross violation of transparent and fair regulatory practices.
While legally feasible, the consequent decision to merge ÚPDI with the National Competition Authority (NCA), after years of ÚPDI’s effective independent operation, raises concerns. This move could undermine its role in fostering fair competition and non-discriminatory access to the rail sector.
Despite the court’s scathing indictment, the Czech Parliament has steamrolled the Act to abolish ÚPDI. The merger is now scheduled for 1st January 2024, marking a troubling start to the New Year for the EU rail market opening.
ALLRAIL Secretary General Nick Brooks says: “The disbanding of ÚPDI is a striking blow to the heart of railway regulation. It is a clear case of the fox guarding the henhouse – Ministries acting as both players and referees in the rail sector. This move is not just a step back; it is a leap into the abyss for independent regulation.
As we stare down the barrel of the EU Fourth Railway Package, one must ask: are we witnessing a calculated dismantling of regulatory independence? This is not just unfortunate; it is an alarming bellwether for the future of rail market opening in Europe.”