Compensation for poor OC Transpo service could include refunds or discounts

Head of OC Transpo Rick Leary during a recent transit committee meeting at Ottawa City Hall. Photo by Tony Caldwell /Postmedia

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OC Transpo senior staff have suggested several options to compensate riders for cancelled bus trips and reduced availability of trains earlier this year, including retroactive refunds, future discounts or investments in improving reliability.

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General manager Rick Leary submitted a report to the transit committee that outlines several fare-based options that would compensate riders for unreliable service, but would cost OC Transpo millions.

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Under one scenario, OC Transpo would offer refunds to customers who were directly impacted by service disruptions from mid-January to the end of March, when a number of bus trips were cancelled due to mechanical issues with OC Transpo’s aging diesel fleet and the lengthy delivery delays with hybrid electric buses.

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At the same time, the O-Train was operating with a reduced fleet capacity due to a spalling issue with the wheel bearings that forced a number of train cars out of service.

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According to the report from Leary, it would cost OC Transpo $3 million if it provided a 50 per cent refund to customers who paid single-ride fares by Presto card between Jan. 22 and March 31.

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It would cost $5.2 million if OC Transpo applied a 50 per cent refund to customers who purchased any or all of the January, February and March monthly passes by Presto card.

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It would cost $8.2 million to carry out both refund options, and that cost would climb higher if OC Transpo issued refunds to organizations who purchased passes in bulk.

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Refunds would be applied as a credit back to each customer’s account.

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“Customers who typically rely on transit but reduced their usage or stopped travelling altogether during the service disruption period would not receive the same level of compensation,” Leary wrote.

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While retroactive refunds would compensate riders, they “would not provide an incentive for them to choose transit in the future.”

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OC Transpo took 41 train cars out of service in January for inspection and replacement of the cartridge bearing assemblies in the axles. Photo by Tony Caldwell /Postmedia

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OC Transpo said it is “not technically feasible” to refund fares to customers who paid by cash, credit card or debit card.

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Another option to offer future discounts “could benefit a broader range of transit users” and could attract returning and new customers, according to the report.

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A half-price discount on monthly passes sold to individual customers would cost OC Transpo $2 million to $2.5 million per month, and that cost would rise if the same discount was offered to organizations who purchase passes in bulk.

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A similar discount on single-ride fares would cost $3 million to $3.3 million per month.

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Offering a weekend of free fares would cost OC Transpo $400,000 to $450,000.