Stagecoach Yorkshire is having to increase bus fares following a decision by the South Yorkshire Passenger Transport Executive (SYPTE) to impose a new charge for the use of bus stations which the company estimates will cost them around half a million pounds.

The charges will be levied at interchanges and other bus stopping facilities at Barnsley, Doncaster, Meadowhall, Rotherham, Sheffield, Dinnington, Hillsborough, Swinton and Crystal Peaks.

Stagecoach says that a typical 10-minute frequency route with buses running 13 hours a day six days a week will attract a new departure cost of about £13,000 per year.

It will lead to a fares increase from Sunday August 26 of 10p on each adult single fare for a journey that involves using one of the above bus facilities. Where passenger journeys involve using more than one bus station then the increase will be higher.

Paul Lynch, Stagecoach Yorkshire managing director, said: “It is extremely unfortunate that the SYPTE have decided to introduce this charge at a time when the company is working very hard indeed to encourage people to travel by bus.

“It is a great pity that we are having to pass on the bulk of these departure charges to our customers but the sums involved are too high for us to absorb without seriously affecting our business and the improvements we are making.

“For example, we wish to continue buying new vehicles and improving service frequencies following on from investment that has already taken place across South Yorkshire.

He added: “We have been in direct contact with SYPTE for many months in an attempt to negotiate a way forward which would avoid these increases and we will continue to do so. If we are successful, all fares that have been increased will reduce to their original value.

Last year Stagecoach successfully appealed against the money allocated to it by SYPTE for providing concessionary fares but, says Mr Lynch, the extra money they were awarded by an independent adjudicator will be swallowed up by the new charges.

Mr Lynch claims Stagecoach has been dealt a double whammy because the new charges are more than the amount they were awarded in the first place.

A further blow to Stagecoach Yorkshire is that the departure charges will apply from April 2007. Mr Lynch added: “This is unfair and means that Stagecoach will have to absorb this past cost. Also, we will not receive anything different as a result of paying the departure charge compared to before April 2007 when we did not pay any fees to use interchanges.

The company says that customers will be able to avoid these “unfair charges if they wish because fares will not change if passengers make journeys which do not use interchanges, such as boarding and alighting at stops before or after interchanges.

Mr Lynch explained: “If we find that customers are happy to choose to pay less and avoid interchanges, then we can alter bus routes to match passenger demand.

In addition, customers purchasing Dayriders, Megariders, Goldriders and other multi-journey tickets will not see any price rises as the company has decided to absorb the new departure charges as a way of thanking its most loyal and frequent users.

Stagecoach Yorkshire has recently invested £6.3 million in new buses for its South Yorkshire services.

The massive investment means passengers in the county have a total of 63 new buses – all which have been added to the fleet in the past few months. Sheffield has gained 41 new buses; Rotherham 17 and Barnsley five.

The move is part of the company’s wide reaching improvements to the area’s bus services – the biggest changes in the last 20 years. Many passengers who use Stagecoach buses in South Yorkshire are seeing improvements to a range of services including more frequent buses, more services in some areas and new low floor easy access buses on other routes.

Stagecoach Yorkshire, who bought out Yorkshire Traction in December 2005, made the changes after a major review of services.