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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 discusses the practicalities of a cost and revenue sharing mechanism in the UK rail industry.",
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      "text": "L.E.K. would recommend the hybrid approach, but a consistent set of rules on the preparation of geographic P&Ls should be used by all TOCs.",
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      "text": "L.E.K. would recommend the hybrid approach, but a consistent set of rules on the preparation of geographic P&Ls should be used by all TOCs. This would reduce the scope for gaming but some potential would still exist",
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      "text": "However, if a full cost and revenue sharing mechanism were to be implemented then train operators should be required to split their P&Ls by NR geography. There are a number of ways in which this could be done: using a single high level allocation metric such as VTAC charge; bottom-up review and allocation of each P&L line item; alternatively, a hybrid of these two approaches could be used",
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      "text": "The geographic reporting challenge is generally lower for TOCs because in most cases TOCs would be predominantly in a single NR geography. It is recognised that there are several operators for which this is not the case, but a number of these might elect not to be full financial participants in the cost and revenue sharing mechanism",
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      "text": "We would not recommend that TOCs be required to align any of their management practices with NR’s geographies. TOCs should continue to manage their businesses in a way that best meets customer needs and drives revenue at the lowest cost",
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      "text": "8 – Information: We would not recommend that TOCs be required to align any of their management practices with NR’s geographies. However, train operators should be required to split their P&Ls by NR geography",
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