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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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      "text": "Given the uncertainty over whether a Regional EBS would deliver VfM for taxpayers, in might be best to include it as a priced option during franchise bids rather than as the base case",
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      "text": "ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "Overall VfM would depend on a number of factors including how train operators price a Regional EBS mechanism into their franchise bids. Bidders would have to take a number of factors into account including: The Regional IM's likely cost and revenue performance relative to the regulatory target in the absence of train operators' input (i.e. the average outturn vs target); The range of uncertainty around the outturn vs target (i.e. the variability of outcomes); The extent to which train operators are able to influence NR's costs",
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      "text": "Even if a phased approach were used to implement a Regional EBS mechanism, significant uncertainty remains over whether such a mechanism would deliver VfM for taxpayers",
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      "text": "Franchise bidding has been very competitive in recent years and this could indicate that taxpayers would secure VfM through a Regional EBS mechanism being implemented through a bidding process. However, there is significant uncertainty regarding all of the factors listed above and that, combined with train operators negative reaction to cost sharing mechanisms during L.E.K.'s workshops, could lead to conservative pricing in this area",
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      "text": "A Regional EBS could be included as a priced option in franchise bids rather than the base case. This would have the advantage of providing transparency of train operators' views of the cost and benefits of the mechanism, thereby facilitating an assessment of VfM. However, bidders have limited capacity to price options during the bidding process so funders need to be careful in the prioritisation of options",
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      "text": "Given the uncertainty over whether a Regional EBS would deliver VfM for taxpayers, in might be best to include it as a priced option during franchise bids rather than as the base case",
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      "text": "Option 1: Symmetrical Regional EBS",
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