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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "As such, there is a large range of uncertainty over the achievability of ORR’s assessment of NR’s efficient expenditure.",
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      "text": "The ORR assesses NR’s efficient expenditure for each five year control period through its periodic review process. This is used to determine NR’s revenue requirement for the control period given the required outputs. This is the natural baseline to use for NR for a cost and revenue sharing mechanism and was used by the ORR for its PR08 EBS mechanism. The ORR and NR both carried out a significant amount of work during PR08 in order to assess NR’s current level of efficiency. This led to a very wide range of estimates for the efficiency gap between NR and top quartile infrastructure managers. The ORR analysed the rate of improvement achieved by companies in other regulated industries and made a high level judgement that “Network Rail should be able to catch-up two thirds of the efficiency gap during CP”. Assessing NR’s efficiency is inherently difficult as a result of it being the only national rail infrastructure manager in the country. Many other regulated industries include a number of similar companies which facilitate comparisons and the assessment of relative efficiency (e.g. electricity and gas distribution, and water). As such, there is a large range of uncertainty over the achievability of ORR’s assessment of NR’s efficient expenditure. Indeed, NR’s Executives considered appealing against the ORR’s determination.",
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      "text": "… I am extremely concerned that the funding settlement outlined today will put our plans to meet rising demand at risk …",
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