Maximum Allowable Fare Adjustment
= 0.5 cCPI + 0.4 WI + 0.1 EI – 0.1% +
Network Capacity Factor
NCF measures the year-on-year change in the public transport network capacity relative to the change in commuter demand. The factor is weighted equally between bus and rail. The network capacity is determined by the number of operated bus and train trips and their respective licensed capacities, while commuter demand is determined by the number of trips made by commuters and their travel patterns.
The previous fare formula, which was implemented in 2013, served well in tracking inflationary cost movements through the core Consumer Price, Wage and Energy indices. However, since 2013, our public transport system has transformed significantly - 1,000 new buses, 80 new bus services, as well as 200 new trains have been injected into the public transport network. Under the new industry models, operators are required to provide more bus and train trips and adhere to stricter service performance standards. The opening of the Downtown Line and Tuas West Extension have also provided greater connectivity for commuters.
The fare formula calculates the annual allowable fare adjustment quantum that PTC can grant. To prevent any spikes when adjusting fares, the PTC also has the flexibility to roll-over part or all of the quantum to the next fare review exercise.