From
Proactive InvestorsRail operators stripped of profit incentive ahead of renationalisation
The Department for Transport is getting rid of an incentive scheme that allows non-publicly owned rail companies to make additional profits
According to the Financial Times, this will involve scrapping the ‘revenue outturn mechanism’ that was introduced into national rail contracts (NRCs) by the former Tory government less than a year ago.
These contracts were intended to encourage UK▸ rail operators to grow revenue take and passenger numbers.
I have sometimes recently wondered what incentive the remaining private
TOCs▸ have ...
The agreed contract which will include profit, also there will be incentives of performance, customer satisfaction it may include an element of revenue protection; I suspect the previous Governments scheme was a bit of botch