A severely reduced and restricted train service is operating at London Euston after problems with overhead cables caused the cancellation of all arrivals and departures at the station during the morning rush hour.

Virgin Trains and London Midland which operate out of the station – one of the UK’s busiest – said that they began operating a limited service at 11am this morning after passengers endured a grim journey to work. Delays to the line over the past three days have cost businesses an estimated £38 million.

Virgin is running a quarter of its usual service with only one train an hour to each of its destinations: Glasgow, Liverpool, Manchester and Birmingham.

It said carriages were likely to be overcrowded and that passengers should seek alternative routes if they can. Tickets affected will be accepted on services tomorrow even if they were bought in advance for a particular departure time. It is not yet clear when normal service will be restored.

London Midland is running trains to Tring in Hertfordshire and Northampton, with four trains an hour compared to the usual six. Its services to Birmingham have not yet been restored.

It is unclear what caused the damage to overhead power lines on the West Coast Mainline. Network Rail said that engineers were working on the problem, the third to affect the line since the start of the new year. The chaos on the line over the past three working days is estimated to have cost businesses £38 million, according to the British Chamber of Commerce. Only two of the four lines damaged have been fixed so far.

Network Rail said: “Passengers are advised to check with train operators or national rail inquiries before travelling. Network Rail apologises to anyone whose journeys have been disrupted."

This morning Virgin was forced to cancel several services and take passengers by bus from Milton Keynes in Buckinghamshire to London. London Midland was not able to run any trains between London and Hemel Hempstead in Hertfordshire, while ScotRail had to divert sleeper services. Trains run by the Southern rail company were also affected.

Commuters travelling to work in the extreme cold experience delays of about 90 minutes because of the Euston problems.

David Frost, director-general of the British Chambers of Commerce, said: “There is no excuse for the huge amount of chaos thisrushed upgrade to the West Coast Mainline has caused travellers.

“Businesses have lost a staggering £38 million in just three days because Network Rail have again failed to adequately deliver. Network Rail must ensure that there is a rapid and effective improvement in the reliability of the network."

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