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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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  "authorName": "L.E.K.",
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  "notes": "The slide uses a flow diagram to illustrate how expenditure categories feed into the Regulatory Asset Base (RAB) and subsequently into the revenue requirement calculation.",
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      "kind": "callout",
      "text": "NR will be provided with an allowed return for CP4 that reflects its risk-adjusted cost of capital, judged by the ORR to be 4.75% in real terms",
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      "kind": "diagram",
      "text": "Flow diagram showing how Operating expenditure, Maintenance expenditure, Schedule 4 and 8 costs, Amortisation allowance, and Allowed return sum to Gross revenue requirement, with Renewals and Enhancements feeding into RAB.",
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      "text": "The amortisation allowance is based on long-run steady-state renewals expenditure (with a further small addition to amortise the non-capex additions made to the RAB at the start of CP4)\nNR will be provided with an allowed return for CP4 that reflects its risk-adjusted cost of capital, judged by the ORR to be 4.75% in real terms",
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      "text": "Gross revenue requirement: 26,728",
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      "kind": "source-note",
      "text": "Source: ORR, Periodic Review 2008. ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "PR08 Expenditure assumptions table",
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      "kind": "title",
      "text": "NR's capex on renewals and enhancements is added to its regulatory asset base (RAB). The RAB amortisation allowance and allowed return are used to calculate NR's revenue requirements",
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