It’ll be no more profitable for
GWR▸ had there be double the number of passengers.
So is there any motivation for GWR to encourage people to use the train, or is that now a task of the ministry?
We don't have the text of GWR's NRC, but
SWR» 's is available and no doubt the structure will be much the same. There are, inevitably, incentives. These are listed, but most of the numbers of pounds and some of the key details are omitted. But here's a list of the components of that calculation, and what they are can be guessed. One amount of money is given: the maximum performance based fee is £1,092,307.69 per period.
£PBF =
OP▸ + CS + SQ + FIN + BM
£PBF shall have a value between zero and the Maximum Performance Based Fee in relation to the relevant PBF Assessment Period;
OP means the sum (in pounds sterling) that is zero or a positive number representing the Operational Performance Fee calculated in accordance with the Applicable Assessment Methodology;
CS means the sum (in pounds sterling) that is zero or a positive number representing the Customer Satisfaction Fee calculated in accordance with the Applicable Assessment Methodology;
SQ means the sum (in pounds sterling) that is zero or a positive number representing the Service Quality Standards Fee calculated in accordance with the Applicable Assessment Methodology;
FIN means the sum (in pounds sterling) that is zero or a positive number representing the Financial Performance Fee determined in accordance with paragraph 2.3; and
BM means the sum (in pounds sterling) that is zero or a positive number representing the Business Management Fee calculated in accordance with the Applicable Assessment Methodology.
There are two ways of calculating £FIN, depending on something (Shapps, I think):
FIN(Cost) + FIN(Revenue) + FIN(TT) or
FIN(Profit) + FIN(TT)
For operational performance, the further breakdown is:
The value of OP for the purposes of the formula set out in paragraph 2.2 of Chapter 7.2 shall be calculated as the aggregate of the calculations performed with respect to each Reporting Period in the relevant PBF Assessment Period pursuant to paragraphs 2.2 to 2.4 of this Appendix 5 to Chapter 7.2 (as applicable), in respect of each of:
(a)
TOC▸ on Self Cancellations;
(b) TOC Minutes Delay;
(c) Short Formations;
(d) T-3;
(e) T-15; and
(f) All Cancellations.
In most cases that I can see, upper and and lower target levels are defined and the relevant payment component scales from zero to its defined maximum over that range. A lot of words are involved in this process (I can't guarantee that none were harmed).
