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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "A percentage revenue share rate in the range of 5-20% might be appropriate to provide sufficient incentive to NR without unduly blunting TOCs' incentives",
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      "text": "If the sharing percentage was 20% then NR's risk buffer would be equivalent to a 17% shortfall in revenue",
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      "text": "If the percentage revenue share rate were set at too high a level then the incentive on TOCs to grow revenue would be blunted because they would pick up 100% of any incremental cost of driving revenue growth (e.g. marketing expenditure) but would receive less than 100% of the revenue uplift. This blunting of incentives is already visible for TOCs that are currently receiving revenue support payments from the DfT (although in those situations TOCs are only receiving 20/50% of the marginal revenue)",
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      "text": "20% equates to 23% of NR's total revenue requirement",
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      "text": "If a revenue share scheme were to be introduced then it would be preferable for the same percentage to apply to all operators – including both passenger and freight. This would ensure that NR values £1 of industry revenue equally irrespective of the train operator",
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      "text": "Freight operators highlighted that their margins are not high enough to make revenue share payments to NR. If this scheme were to apply to freight operators then the payment could be made by government to reflect the broader economic benefits of moving freight by rail instead of road. An alternative rationale for a government top up payment to FOCs would simply be as an enabler for securing the passenger TOC benefits of this mechanism",
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      "text": "5% of total franchised passenger TOC revenue of c.£6.1bn p.a. equates to c.£305m, or c.6% of NR's total revenue requirement",
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      "text": "This would lead to NR favouring the most commercially valuable services. However, if government values £1 of revenue more highly on some services than others due to broader economic benefits then government could always make a top up percentage payment to NR to reflect this broader value",
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      "text": "However, the percentage revenue share rate would need to be high enough to give NR a meaningful incentive to help TOCs to grow revenue. A value in the range of 5-20% might be appropriate",
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      "text": "Revenue share percentage: 5-20%",
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      "text": "A percentage revenue share rate in the range of 5-20% might be appropriate to provide sufficient incentive to NR without unduly blunting TOCs' incentives",
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      "text": "Option 3: NR shares TOC revenue",
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