Setting of service standards

The required quality of service within a contract will determine the cost of provision and hence, other things being equal, the price that needs to be charged. The regulator needs to be highly sensitive to this reality, and try to strike an appropriate balance of passenger interests.

This process can be assisted where the regulator is also accountable for the public costs that arise from his decisions, in particular the level of public service obligation compensation that is then required. It is also possible to set different standards and prices for clearly differentiated service offers, such as for air-conditioned buses or for buses permitted to carry standing as well as seated passengers.