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      "text": "The sharing percentage should be no higher than 25% as the infrastructure manager should retain the overwhelming majority of the infrastructure related risks.",
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      "text": "Note: * Assuming TOCs share 65% of total outperformance (based on TOC share of variable track access charges across TOCs, freight and open access)\nSource: ORR; Rail VfM team; L.E.K. analysis",
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      "text": "Whether or not this level of exposure would be sufficient to incentivise TOCs to actively engage with NR to help improve NR’s efficiency would depend on TOCs’ views on the degree to which they are able to influence NR’s costs and the resources required to do so.",
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      "text": "If NR were to outperform or underperform by an amount equal to its annual risk buffer then a 25% sharing percentage would result in £25m of TOC exposure to NR costs. This is equivalent to 0.5% of total TOC costs or 9% of normalised TOC profit.",
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      "text": "This level of risk transfer is not so large that it would have a material impact on the nature of TOCs, providing that caps are used to protect TOCs from more extreme levels of NR out/underperformance.",
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