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“This move recognises customers have not received the service they deserve, and means that most regular passengers will effectively pay the previous year’s prices for their 2008 season tickets on renewal,” the firm said.

Season ticket holders will receive their compensation when they renew their current tickets.

Punctuality record 

First Great Western, widely regarded as the UK’s worst rail franchise, last December achieved a punctuality record of only 64 per cent on its London routes, well below the 88 per cent minimum set by the railway regulator.

Under the terms of the Passenger’s Charter, if reliability and punctuality targets are not met, season ticket holders receive a refund of five or 10 per cent. First Great Western will now refund 10 or 20 per cent of the season ticket value.

A customer with a standard class annual season ticket between Bristol and Paddington would now be entitled to £867 in compensation.

Weekly season and day ticket holders will also be able to claim double compensation if their service is significantly delayed or cancelled.

The right thing 

FGW chief operating officer Andrew Haines said: “We’ve not given customers the service they deserve over the last 12 months, and we’re sorry.”

He added that the firm want to do “the right thing” by its customers. First Great Western is working with Network Rail to help it deliver a better service.

Haines said that he recognised, however, that the promise of a better service tomorrow is little consolation for poor performance. He added that he wanted this to send a clear message that the firm takes it performance commitments seriously.

First Great Western gave its passengers its commitment to do “everything possible” to make sure service improves this year.

The company will also be freezing fares and car parking prices at their current prices until at least the end of this year.

Passenger Focus chief executive Anthony Smith called the deal an important step towards rebuilding a link between service quality and price. He added that it follows weeks of discussion and showed First Great Western is listening to passengers and passenger groups.”

London TravelWatch chairman Brian Cooke welcomed the announcement. He said, “This move recognises that customers need to be listened to, and we are pleased that process has now started.”

Fare strike

First Group PLC, the parent company of First Great Western, managed to avert a 48-hour strike by members of the RMT union after talks last week.

It also faced a second fare strike by passengers on 28 January. A similar refusal by passengers to pay for rail travel last year saw thousands taking part.

Following OxRail's decision that commuters from Oxford to Paddington will organise a fare strike, they have been joined by Bath, Bristol, Frome, Warminster, Oldfield Park, Keynsham, Yate and Yatton.

Passengers at Bath travelling both to London and Bristol are expected to join the strike.

"First PLC needs to take heed, listen to its passengers, reverse the recent fare increases, and invest their burgeoning profits in more rolling stock and staff "said a spokesperson from strike co-ordinators More Train Less Strain (MTLS).

Double-digit fare increases 

MTLS had claimed that punctuallity figures released by FGW show that the proportion of trains arriving late has worsened in the last month, climbing to an astonishing 35 per cent on the Oxford- London line.

“It is hardly surprising with figures like this, old trains, overcrowded trains, cancelled trains and rocketing fares that most passengers and many staff now want the Government to act and remove the franchise from First."

First Great Western had originally announced double-digit fare increases on individual lines, which hit season ticket holders particularly hard.

MPs have filed a motion asking the Government to strip FirstGroup of its rail franchise.

FirstGroup, which recently became a FTSE 100 company, also runs the ScotRail, First Capital Connect and Transpennine Express franchises, open access operator Hull Trains and freight company GB Railfreight.

Related articles

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• First Great Western strike unlikely
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Related links

• First Great Western
• More Train Less Strain