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Delays Costs
- Thread starter jdxn
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RailUK Forums
bb21
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Please do not ask this kind of question as an intelligent person in an informed discussion. Only idiotic know-it-all senior managers ask this question because the answer doesn't exist.
Quote anything between 50 and 200 at your free will but actual cost when averaged out in an incident may still exceed this range.
Quote anything between 50 and 200 at your free will but actual cost when averaged out in an incident may still exceed this range.
Clarence Yard
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To expand on the “doesn’t exist”, NR pays out per railway period on an average of delays and cancellations over those 28 days. It is expected that there will be a “normal” level of delays and that acts as the threshold above which NR pays, based on the difference between the threshold and the average minutes delay figure for that period.
The rate at which the payment is made is a fixed sum, based on the revenue for that train service group, for that TOC. So there are a myriad of payment rates, all commercially confidential.
The TOC itself has a similar part of the delay regime by which it pays delay costs to NR. The payment rate and threshold will be different as they relate to the effect on other TOCs. All the payment rates and thresholds are usually reviewed and adjusted by the ORR as part of their periodic review process.
The whole regime was designed on the star model principle with NR sitting in the middle. This is to stop TOCs suing other TOCs (and NR) for every single delay. It is effectively a simple liquidated damages regime for revenue loss.
The rate at which the payment is made is a fixed sum, based on the revenue for that train service group, for that TOC. So there are a myriad of payment rates, all commercially confidential.
The TOC itself has a similar part of the delay regime by which it pays delay costs to NR. The payment rate and threshold will be different as they relate to the effect on other TOCs. All the payment rates and thresholds are usually reviewed and adjusted by the ORR as part of their periodic review process.
The whole regime was designed on the star model principle with NR sitting in the middle. This is to stop TOCs suing other TOCs (and NR) for every single delay. It is effectively a simple liquidated damages regime for revenue loss.
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