End of Open Access Entrepreneurs

[DownSouth]

There is an alternative method of operating a privatised railway, which is that employed by TfL for the London Overground franchise. All LOROL have to do is provide the level of service specified in their contract and they get guaranteed revenue, whatever the farebox receipts. However, because it's TfL taking the risks it's TfL, not LOROL, who get to keep any additional profit.

Ah yes, the European model of net tendering. It makes so much more sense for the operator to be paid as a contractor for running services on behalf of the contracting body rather than issuing a franchise.