RAIL operator First Great Western has this morning announced it will not seek an extension to its franchise.

The company was awarded a seven-year contract to run services between Oxfordshire and London in 2006 but has said it will not trigger an optional three-year addition when the initial period runs out in March 2013.

Managing director Mark Hopwood said FGW wanted to signal its intentions early to provide “clarity” to the Government.

The decision not to go for the three-year extension, which would have been offered if this year’s performance targets are met, will put the franchise out to tender and Mr Hopwood said FGW would be looking to secure a longer-term deal after 2013.

He said today’s announcement was "about the franchise and the relationship it has with government, it’s not about the service offered day to day to customers” and stressed it did not change electrification plans.