New National Rail Contracts for SWR and TPE (FirstGroup press release):
Interestingly these are still not the ultimate form of contract that the government seeks - the Williams Review refers to Passenger Service Contracts.
FIRSTGROUP SIGNS NEW NATIONAL RAIL CONTRACTS
FOR SOUTH WESTERN RAILWAY AND TRANSPENNINE EXPRESS
FirstGroup plc (‘FirstGroup’ or ‘The Group’) is pleased to announce the agreement of National Rail Contracts (‘NRCs’) with the Department for Transport (‘DfT’) for its South Western Railway (‘SWR’) and TransPennine Express (‘TPE’) train operating companies. The new NRCs will commence on 30 May 2021, when the current Emergency Recovery Measures Agreements (‘ERMAs’) come to an end.
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- New NRCs for SWR and TPE have a two-year term to May 2023 with options to extend by up to two further years to May 2025
- FirstGroup bears no revenue risk and very limited cost risk under an annual budget agreed with DfT; there is also no significant contingent capital risk
- Annual fees on NRCs consist of a fixed management fee plus performance fee based mainly on the delivery of customer-focused performance metrics
Interestingly these are still not the ultimate form of contract that the government seeks - the Williams Review refers to Passenger Service Contracts.