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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "Caps should be used to limit the downside exposure to each company resulting from the cost and revenue sharing mechanism",
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      "text": "However, it should be noted that NR's predecessor, Railtrack, did go into administration following the Hatfield crash and WCRM cost overrun",
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      "text": "NR is protected from major unplanned expenditure through its risk buffer and ring fenced fund, which average 3.6% and 8.6% of ORR's assessment of NR's overall efficient expenditure respectively",
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      "text": "It should also be noted that the variations in NR's over- or underspend would be greater in percentage terms at the level of NR's operating routes. Results at the national level are less volatile due to the portfolio effect (this is discussed in more detail later)",
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      "text": "Furthermore, NR can request a re-opener to the CP4 determination if it expects to be unable to finance itself efficiently within the next 18 months in the absence of additional funding or reduced outputs",
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      "text": "TOCs are thinly capitalised and do not benefit from any re-opener provisions. When NXEC experienced financial distress due to a recession occurring in the period before its revenue support mechanism became activated, the DfT made it clear that it did not renegotiate rail franchises and took the business back into public ownership",
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      "text": "6 – Caps: Caps should be used to limit the downside exposure of each organisation to its counterparty",
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