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Economics of Trolleybuses in the UK

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HSTEd

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Well I decided to do a rather basic analysis on the economics of trolleybuses in the UK, and excluding benefits to the state from current diesel operations being lost in the conversion (In this case I refer chiefly to the fact that diesel bus operators pay full price for diesel, including the petroleum duty and 20% VAT, compared to no duty and 5% VAT for electricity) it would appear that the threshold for conversion for a service to electric operation seems to be rather low.

Based on experience and estimations in Vancouver in 2001, and accounting for inflation in the local currency since then and the current exchange rate, it would appear that a single twin lane (one in each direction) kilometre of Trolleybus infrastructure would cost in the vicinity of £813k, including infrastructure like points and substations and the like.

If an Index Linked 20 year gilt was used to pay for the infrastructure (with its current yield of -1.05%) with the full 20 year period being used to defray the capital costs, it would appear that the infrastructure repayments woud total roughly £90 per day for each twin lane kilometre, or roughly £45 per day for each single lane kilometre.

This, admittedly rather old, report from TfL seems to indicate that a non hybrid London bus currently achieves a fuel mileage of roughly 5mpg, which translates to roughly 0.55 litres of diesel per kilometre.
Using a relatively simple conversion of 4kWh(e) = 1L of diesel in terms of useful energy, it would appear that a simple conversion would have the bus using roughly 2.2kWh per kilometre.
However the bus would have access to regenerative braking which reduces this energy use to approximately 1.8kWh/km using a reasonable approximation. (That is ~20%, I find figures of roughly 40% savings from regenerative braking a little hard to believe).

The price of .55 litres of fuel is roughly 77 pence, whereas the price of 1.8kWh of electricity to a large industrial customer (as a national or regional trolleybus system would undoubtedly be) is roughly 11.7 pence (6.5p/kWh).
This means that 65.3 pence is saved from each run under the kilometre of trolleywire.

Which means that if 69 double decker buses use that kilometre of infrastructure every day the state would break even on the cost of installing the equipment assuming it has a 20 year operating life and any savings in the maintenance of trolleybuses compared to diesel vehicles was also passed on and could cover maintenance of the overhead equipment (which is reasonable IMO, since trolleybus maintenance if it uses wheelhub motors and LED lights is minimal).

69 double deck buses each day in each direction translates to roughly 4 buses per hour, excluding short spurs which would enable more bus routes to go over to entirely electric operation.

This means that if you account for the network effect it would appear to suggest that the electrification of very large segments of urban bus networks would be to the state's financial benefit, ignoring the loss of tax income from fuel duty, while reducing carbon emissions and necessary imports of valuable liquid fuels, which may have strategic importance in an increasingly uncertain future oil market.

The losses in fuel duty from the bus diesel market would appear to be a very minor effect compared to the fact that a great deal of London Bus routes are very much more heavily used than that and the massive fines from the EU that London and the UK are soon to face due to repeated failures to improve air quality.

The electrification of the majority of the urban bus networks in the UK is sure to have major positive impacts on air quality, reducing both those fines and expensive incidences of respiratory diseases.
I have to believe that those effects will be cancel out any disbenefits from the loss of fuel duty.

So in summary:

Bus routes with more than 69 buses in each direction each day in isolation would be advantageous for the state to use the very low cost borrowing available at the present time to convert to trolleybus operation.
If the network effect is included the number of routes suitable increase rather dramatically, resulting in it being beneficial, IMO, to electrify the majority of Britain's urban bus networks.

Does anyone else have an opinion on this matter?

Please note:
I am assuming that the only infrastructure work to be done is the installation of electrification, with operations continuing as they do now, and that the trolleybuses purchased are double deckers similar in concept to the original double deck trolleybuses used in the UK, perhaps with very limited battery capability to manoeuvre around obstacles and pass each other for whatever reason.

With the huge order I am suggesting it is highly likely that they would be a similar price, if not cheaper, to conventional diesel buses so I am not including this factor in my calculation in order to be conservative.

I am also assuming that the hybrid buses in use on many urban routes would be kicked to less heavily used routes to displace pure diesel buses and thus it is reasonable to assume that the trolleybuses are replacing pure diesel and not hybrid vehicles like the "Borismaster".
 
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Clip

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Why would you need a modern day trolley bus to actually run on any track at all?

By not doing so you are going to be paying a lot lees per KM then you have stated above
 

WatcherZero

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Im presuming he means overhead electrification points as the Vancouver system doesnt use a guide rail.

Under your maths HSTED you would need a new power station for roughly every 1,000 buses, how many buses are there in this country (something like 20,000? Theres 7,000 in London but then theres 700 bus operators so probably a fair bit more)?. New power station at £500m for a gas power, £800m for a windfarm upto a couple of billion for a nuclear power plant.
 

LexyBoy

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What does an average power station output? Let's say 500 MW, which gives 500 kW for 1000 buses (670 hp). Even accounting for distribution losses I think this is a bit on the high side - a quick look on Wikipedia suggests buses are typically around 200 hp, and I doubt more than a quarter of their time is spent at full output, so it's likely there could be considerably more buses running per power station.

Even if each system were powered by off-grid diesel generators there would still be benefits in terms of reducing pollution in urban areas (plus it could still be more efficient - trolleybuses may be lighter and don't need time off to refuel and need less maintenance).

I'd love to see more trolleybuses (and trams for that matter), but as HSTEd's post suggests this would require organisation and investment on a national scale, which I can't see happening. Buses are not a vote winner (but roadworks are a definite vote loser).
 

HSTEd

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Why would you need a modern day trolley bus to actually run on any track at all?

By not doing so you are going to be paying a lot lees per KM then you have stated above

As WatcherZero says, I mean the "points" in the trolleywire equipment rather than in any surface guiderail... apologies for not being clearer on that point.

Under your maths HSTED you would need a new power station for roughly every 1,000 buses, how many buses are there in this country (something like 20,000? Theres 7,000 in London but then theres 700 bus operators so probably a fair bit more)?. New power station at £500m for a gas power, £800m for a windfarm upto a couple of billion for a nuclear power plant.

Well a twin unit ESBWR plant (a typical next generation nuclear reactor) has an exportable power production on order of 3000MWe, if we assume that all 7000 buses in London and they have a power output somewhere in the vicinity of 200kW (roughly 267hp) then we get a total load of 1400MWe, we could support somewhere in the region of 15000 buses from that one site, even if they all went to full throttle at the same time.

And since, I hope, electricity companies are not selling electricity to such industrial users at a loss then they can presumably supply more electricity at 6.5p/kWh.

I'd love to see more trolleybuses (and trams for that matter), but as HSTEd's post suggests this would require organisation and investment on a national scale, which I can't see happening. Buses are not a vote winner (but roadworks are a definite vote loser).

Indeed, but the EU is about to clobber the UK with huge air quality fines and a massive crash programme in trolleybus line construction would improve air quality and be a bargaining chip that can be used to show that the UK is in fact trying to improve its air quality.

EDIT:

Am I right in assuming that this 69 bus/day criterion would cover a huge amount of the London bus network outright even before we consider the network effect?
 
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tbtc

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if 69 double decker buses use that kilometre of infrastructure every day the state would break even on the cost of installing the equipment

69 double deck buses each day in each direction translates to roughly 4 buses per hour

Bus routes with more than 69 buses in each direction each hour in isolation would be advantageous for the state to use the very low cost borrowing available at the present time to convert to trolleybus operation

I presume you mean sixty nine buses a day? Sixty nine buses an hour would be fairly congested.
 

JoeGJ1984

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Given the comeback trams have made in the 1990s, I don't see why modern trolleybuses can't make a comeback - I think you have modern trolleybuses elsewhere, so why not in the UK? It has been found that electrifying railway lines leads to increased usage, so a similar thing here could happen by replacing diesel buses with electric trolleybuses.

And I wonder if in London it would be feasible to operate heritage trolleybuses during the holiday season alongside new trolleybuses - there are some ex-London trolleybuses in preservation at, e.g. the East Anglia Transport Museum. This will add another tourist attraction to London, and so provide economic benefits.
 

tbtc

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It has been found that electrifying railway lines leads to increased usage

I think that a lot of the "sparks effect" (which enthusiasts talk about as if it's something mystic) is more to do with "if you increase frequencies and replace old short trains with longer younger ones then more people will use the railway", rather than because people prefer one type of fuel to another (I doubt most people would notice).
 
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Imo trolleybuses are the way forward. In some places trams and trolleybuses could share the same road/ wires.
Trolleybuses need a neutral as well as a live wire, so a trolley pole rather than a pantograph for trams on that route.
There are trolleybuses that have a diesel engine for off route areas.
I think batteries that recharge under the wires and good for several miles off wire is another option.
I don't think they consume that much power to need another generating station, unless every town has them!
 

HSTEd

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Well every town that has a bus route with ore than 69 double deck buses per day on it should receive them I think.

After we get all those routes done and deal with any double deck network effects there could be rather lightly used routes that overlap with electrified loops at which point we ight need single deck trolleys, but that is far in the future.

We need as many trolleybus lines as possible as fast as possible.

I assume practically the entirety of the London Buses network would be electrified, so do we have an estimate of how many route miles that would be and how many vehicles would be required?
 
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Deerfold

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Bus operators do receive a part-rebate on fuel duty (BSOG) for any fuel used in service.
 

HSTEd

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Bus operators do receive a part-rebate on fuel duty (BSOG) for any fuel used in service.

I assume these "Bus Service Operator Grants" are funded from a pot of money that could be partially diverted to reduce the effective operating costs of trolleybuses by the same amount. (By reducing the infrastructure payments or the like by a similar amount, to the extent of roughly ~8.6p/kWh), this means it should not have any real effect on the breakeven point.

Assuming the state wishes to support trolleybus operations to the same extent that it currently supports diesel operators, which I believe is a reasonable assumption as it would not be at any additional cost to itself over what it is already spending on the diesels.
 
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HSTEd

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I took the South Manchester bus system that centres around Wilmslow/Oxford Road as an example system and started identifying routes that fit the criteria, even without the network effect.

So far I have identified 101, 85, 142, 143, 42, 43 and 111 as being suitable and I haven't really been at this very long, spending most of my time marking out the routes on Google Earth.

These networks really would be enormous.
I think four pairs of wires would be required on Oxford Road to support all the services without causing jams, either that or 'loops' at all the bus stops.
 

Clip

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Whilst I believe there is no such thing as a stupid question, this may actually be one!


In large city areas that you have spoken about would they not be able to use already in place lamposts to rig the overhead wires from - if they insulated it so the drunk on a friday night leaning against it being sick didnt die?

Would this not make the installation of it cheaper or more expensive due to insulation them?
 

David Goddard

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Would love to see a trial take place in the UK- if European cities can use them well then why not over here?
Reading would be an ideal testbed, having had trolleys before, and with Reading Buses being very innovation and eco-friendly minded. They have 31 Electric Hybrid Enviro400s and have just placed an order for nineteen gas powered vehicles so this could be a logical next step.....
 

IanXC

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Surprised to see the NGT scheme in Leeds has not been mentioned. Its a 14km modern trolleybus system currently making its way through approvals.

Pperhaps there are figures available for this to validate or otherwise the OP's hypothesis?
 

Pen Mill

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For those interested in trolleybuses , Up until 2010 , I lived 45 minutes from the Town of Limoges (Population 200k)in Central France which has a trolleybus network comprising 5 lines.Total kilometres run in 2010 were 1,435,000 with 6,305,000 journeys undertaken.

For the French readers , here is a web page which shows the numbers and other info such as sub-stations
http://www.stcl.fr/pages/100#chiffres

Here's a link to the English language Wiki about the network.
http://en.wikipedia.org/wiki/Trolleybuses_in_Limoges
 
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tbtc

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I think four pairs of wires would be required on Oxford Road to support all the services without causing jams, either that or 'loops' at all the bus stops.

Hmm, that's a thought - what would happen for overtaking? Or breakdowns? Would every trolley bus be backed up?

(honest question, I don't know)
 

HSTEd

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Whilst I believe there is no such thing as a stupid question, this may actually be one!


In large city areas that you have spoken about would they not be able to use already in place lamposts to rig the overhead wires from - if they insulated it so the drunk on a friday night leaning against it being sick didnt die?

Would this not make the installation of it cheaper or more expensive due to insulation them?

Normally the wires are strung from the poles using parafil ropes, which take the place of insulators so that it would not matter if the posts are made of metal themselves as they would be insulated from the cables.

There may be some question about whether the current posts could support the loadings however, so new posts may be required, but there is no reason combined lamppost/support poles could not be installed to keep street level clutter to a minimum.

Would love to see a trial take place in the UK- if European cities can use them well then why not over here?
Reading would be an ideal testbed, having had trolleys before, and with Reading Buses being very innovation and eco-friendly minded. They have 31 Electric Hybrid Enviro400s and have just placed an order for nineteen gas powered vehicles so this could be a logical next step.....

I don't know about Reading, but surely a trial would be best undertaken where the benefits of a trolleybus system would be most evident, in London or on the wilmslow bus corridor in Manchester for instance.

Although I am not sure that a trial would be required since this is simply a derivative of any number of systems that exist on the continent and used to exist in the UK.

Surprised to see the NGT scheme in Leeds has not been mentioned. Its a 14km modern trolleybus system currently making its way through approvals.

Pperhaps there are figures available for this to validate or otherwise the OP's hypothesis?

Problem with NGT is it seems to trend more towards the Bus Rapid Transit type model, where all I am proposing is electrification of existing bus routes with minimum changes to existing infrastructure beyond stringing up the trolley lines.

For those interested in trolleybuses , Up until 2010 , I lived 45 minutes from the Town of Limoges (Population 200k)in Central France which has a trolleybus network comprising 5 lines.Total kilometres run in 2010 were 1,435,000 with 6,305,000 journeys undertaken.

For the French readers , here is a web page which shows the numbers and other info such as sub-stations
http://www.stcl.fr/pages/100#chiffres

Here's a link to the English language Wiki about the network.
http://en.wikipedia.org/wiki/Trolleybuses_in_Limoges

Yay, I can always use more data, even if my command of French is not what it could be.

Hmm, that's a thought - what would happen for overtaking? Or breakdowns? Would every trolley bus be backed up?

(honest question, I don't know)

Well if a vehicle broke down presumably the driver would manually, or otherwise, lower the trolley poles which should allow the buses behind to manoeuvre around him.

And around major stops like those opposite the Manchester BBC radio studio at Oxford Road station, you could easily include "loops" so that buses not stopping can proceed past those which are stopped without the latter pulling down poles.
 

Metrailway

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Hmm, that's a thought - what would happen for overtaking? Or breakdowns? Would every trolley bus be backed up?

(honest question, I don't know)

Quite a few trolleybuses now have a diesel engine as well which allow trolleys to go off the wires. Some of these engines are small and are only used in emergencies, whilst others have full dual mode capabilities allowing trolleys to go miles off the wires. I guess dual mode would allow some routes, where full trolley conversion would not be economical, to be partially converted.
 
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scandal

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The issue that raise its head for me is increased wear on the roads that usually result from trolleybus operation as they tend to by their guided (wire) nature pound the same section of road repeatedly increasing damage, would this need to be factored in to the economic costs?
 

Kali

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Well, they're not trams so they don't have to follow *exactly* the same path in the road. Current bus routes are up and down the same bit of road every day - a trolleybus isn't any different.
 

Deerfold

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I assume these "Bus Service Operator Grants" are funded from a pot of money that could be partially diverted to reduce the effective operating costs of trolleybuses by the same amount. (By reducing the infrastructure payments or the like by a similar amount, to the extent of roughly ~8.6p/kWh), this means it should not have any real effect on the breakeven point.

Assuming the state wishes to support trolleybus operations to the same extent that it currently supports diesel operators, which I believe is a reasonable assumption as it would not be at any additional cost to itself over what it is already spending on the diesels.

Presumably the BSOG is funded from the tax on petroleum fuel (as it's a partial rebate - and used to be a full rebate) - which Trolleybuses wouldn't be paying into - so there would be a cost to the state to make a similar grant.

I don't think there's strong state backing for trolleybuses. I only know of 1 scheme that's receiving funding (in Leeds) - and that only seems to be happening because they're miffed at not getting funding for trams.
 

HSTEd

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Presumably the BSOG is funded from the tax on petroleum fuel (as it's a partial rebate - and used to be a full rebate) - which Trolleybuses wouldn't be paying into - so there would be a cost to the state to make a similar grant.

I was already assuming the state was willing to write off the petroleum tax loss in return from benefiting from being able to materially demonstrate that they are taking action to reduce air pollution and thus being able to stave off enormous European fines and trouble at the polls, this is in addition to the obvious strategic advantages to reducing our reliance on valuable, and primarily imported, liquid fuels.

Since many routes that are over the 69bpd breakeven point by miles, (see Oxford Road in Manchester for instance, where several kilometres would be approaching 30bph) the minor losses from fuel taxes would be written off by the fact that the operation of the trolleybus overhead equipment would yield huge profits for the taxpayer.

And it is a basic principle of British government that these taxes are not hypothecated in any way, shape or form.

I don't think there's strong state backing for trolleybuses. I only know of 1 scheme that's receiving funding (in Leeds) - and that only seems to be happening because they're miffed at not getting funding for trams.

Indeed, however the British government is not exactly known for supporting public transport infrastructure of any kind.

Since it is difficult to ascribe a financial benefit to the reduction in air pollution and the reduction in fuel imports (with attendant balance of payments benefits and strategic benefits) I chose to simply write them off as equal to the fuel tax loss.


I did some specific calculations for the South Manchester area, assuming that the primary Stagecoach Manchester routes on the Oxford Road corridor are all converted (142, 143, 42, 43, 111, 85). This underestimates the case because the Finglands buses on these routes could also be potentially converted.

Either way, converting all six routes requires roughly 36 dual lane kilometres of electrification, assuming that none of the corridor requires quad laning... which it shouldn't if we allow for "loops" at bus stops on the "core".

36 dual lane kilometres of electrification would cost roughly £29.3m.

Using the Stagecoach timetables:
42: 93bpd - 27km round trip - 2511 bus kilometres
142: 105+bpd (including extra specials) - 19.2km round trip - 2016+ bus kilometres
43: 107bpd - 32.8km round trip - 3510 bus kilometres
143: 96+bpd (including extra specials) - 19.5km round trip - 1872+ bus kilometres
111: 75bpd - 17.6km round trip - 1320 bus kilometres
85: 79bpd - 15.7km round trip - 1240 bus kilometres

Total: 12469 bus kilometres/day.

Repayments on the £29.3m assuming today's 30 year inflation bond yield of -0.21% and a 30 year infrastructure writeoff period would be ~£2515/day.
This translates to roughly 20p/bus kilometre.

The price of red diesel (so excluding effectively all taxes) is roughly 70p/L.
If we assume 0.55L/km and 1.8kWh/km for diesel and electrified buses respectively (and the earlier stated 6.5p/kWh electricity cost) we get fuel costs of 38.5p/km and 11.7p/km.
Adding in the 20p/km for the infrastructure cost that comes to 38.5p/km and 31.7p/km respectively, so an overall saving of 6.9p/km for the state.

That is an annual gain for the state of roughly £314k, even assuming it sets no value whatsoever on the improved air quality caused by converting Oxford Road into an almost entirely electric corridor, that no other buses (like Finglands or peak extras) converted and that the overall maintenance costs of the trolleybuses and overhead equipment matched that of the diesel buses.

£314k pays the taxes due on more than a quarter of a million litres of diesel, or about 616,000 litres if we include the rebate to reduce the net tax on the fuel to roughly 51p/L including VAT.

You could cross subsidise the tax losses a lot of more marginal trolleybus operations in Manchester wiht that much money.
 
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Deerfold

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If we assume 0.55L/km and 1.8kWh/km for diesel and electrified buses respectively (and the earlier stated 6.5p/kWh electricity cost) we get fuel costs of 38.5p/km and 11.7p/km.
Adding in the 20p/km for the infrastructure cost that comes to 38.5p/km and 31.7p/km respectively, so an overall saving of 6.9p/km for the state.

I'm not criticising the potential for running trolleybuses but I don't understand this bit.

At the moment the state pays nothing for these bus routes - Stagecoach does.

So how can there be a saving for the state if it is paying for any infrastructure at all?
 

HSTEd

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I'm not criticising the potential for running trolleybuses but I don't understand this bit.

At the moment the state pays nothing for these bus routes - Stagecoach does.

So how can there be a saving for the state if it is paying for any infrastructure at all?

Well leaving aside any future bus re-regulation or remunicipalisation.

The state can simply pay for the infrastructure and charge Stagecoach for the use of the infrastructure so that Stagecoach is in a similar overall financial situation (apart from having a fleet of buses that have a rather higher readiness due to being far simpler) and it acquires the benefit I have calculated.


I found a Finnish study that suggests an external cost for diesel buses to account for pollution of 11 euro cents per km, or 8.73p/km.

This increases the costs of the diesel buses per kilometre to 47.2p/km compared to 11.7p/km, and I will now recalculate the breakeven point.

EDIT:
Said external cost is of course for single deck buses that expend rather less fuel and thus produce rather less pollution than the double deckers we are considering here, so I will double the external cost, in line with the apparent doubling in typical fuel consumptions.
This increases the diesel cost to roughly 56p/km, which is approximately 44.3p/km more expensive than the electrics.
The daily repayments under the same conditions as above for a single dual lane kilometre of electrification is roughly £69.71, which translates to roughly 78 round trips under each kilometre.

78 round trips sounds low compared to my previous figure but this is due to my increasing the repayment cost from 20 years typical of the trolleybuses themselves towards the 30-60 years more typical of railway electrification systems.
 
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tbtc

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I'm not convinced that Stagecoach would just accept the terms given for using the wires - they increased the fares of South Yorkshire tickets to/from bus stations when the PTE increased the "departure charge" for using their facilities.

Plus there's the complication of having non-standard vehicles (i.e. at the moment an E400 on the Oxford Road services can be cascaded away to another route, but a Trolleybus can't so easily).
 
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