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      "text": "Using ORR’s periodic review determination as the baseline for cost and revenue sharing with NR would expose them to a whole new category of risk.",
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      "text": "ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "If this were to happen then they would become more similar to NR and it would be a smaller incremental step for them to be given an exposure to the risk around NR’s baseline",
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      "text": "It is possible that the nature of TOCs could change radically as a result of the McNulty Rail VfM review. For example, they could become much more asset intensive and become subject to their own ORR periodic review price determinations. The DfT’s January 2011 franchising policy statement does raise the possibility of the DfT introducing review points for some new franchises",
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      "text": "Train operators are currently very different types of business to NR. They do not currently have their revenue set through a regulatory process. Using ORR’s periodic review determination as the baseline for cost and revenue sharing with NR would expose them to a whole new category of risk",
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      "text": "However, as stated in the introduction section, we have assumed for the purposes of this study that the nature of rail franchises does not fundamentally change",
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      "text": "3 – Baseline: Using the ORR’s assessment of NR’s efficient expenditure as the baseline for a cost and revenue sharing mechanism would expose TOCs to potentially significant regulatory risk (1 of 2)",
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