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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "Horizontal separation with multiple owners would be the strongest enabler of cost and revenue sharing mechanisms.",
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      "text": "Note: * Except higher VTAC rates which simply involves changing a transaction charge",
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      "text": "Gives train operators much better information on their, and other, Regional Infrastructure Managers (Regional IMs). This greatly strengthens train operators' ability to help deliver cost savings through a number of mechanisms, including external challenge of the Regional IMs",
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      "text": "Horizontal separation could be implemented through a phased approach between now and the end of CP5",
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      "text": "L.E.K.'s Alternative Railway Structures report highlighted that there are a range of options for horizontal separation which span from devolution within NR ownership to multiple owners of the Regional IMs (with NR potentially retaining ownership of several of the Regional IMs)",
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      "text": "Introduces indirect competition between Regional IMs through comparative regulation. This, together with the publication of a range of KPIs (financial and non-financial) on their performance, greatly strengthens their incentives to seek continuous improvement",
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      "text": "Any move towards horizontal separation would help to address some of the downsides associated with prescriptive regional cost and revenue sharing mechanisms. However, experience from other regulated sectors has shown that having multiple owners of the Regional IMs improves comparative regulation and strengthens the incentives on Regional IMs to seek continuous improvement. As such, horizontal separation with multiple owners would be the strongest enabler of cost and revenue sharing mechanisms",
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      "text": "Horizontal separation of Network Rail is an essential enabler of all of the cost and revenue sharing options* (2 of 2)",
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