Public Service Obligation System Principles

Abstract

This paper tries to model the public passenger transport system in the railroad traffic from the aspect of the PSO obligation – the Public Transport Obligations, defined by a Regulation enacted by the state level of authority, in accordance with the EU Parliament Regulation 1370/2007/EC. The paper focuses on the aims of the Regulation which regulate the PSO principles, system financing, compensation and subsidies systems. It also establishes the conditions and trends in EU countries. There is also stress about the structure of expenses and income in the exploitation process in relation to the need for subsidies by local authorities for the transport of passengers