Are there any penalties in the franchise letting / agreement from a financial aspect regarding cancelled trains.
Yes, there is.
I tried to makes sense of it before, with limited success. It's roughly as follows:
The performance figures used for calculating bonus and penalty payments are minutes delay and cancellations. Each has a payment based on it, scaled from the difference between the annual average and a target, range limited between a cap and a floor. That difference is multiplied by a sum of money, which is not blanked out in the contract as most other actual amounts are. So far so logical - though they've done it "floor over cap", for some reason.
"Cancellations" is (subject to confirmation*) the total cancellations plus half the part-cancellations, excepting certain exceptions, as a percentage. I can't find any figures for this metric (or minutes delay).
ORR» track
PPM‡ and CASL, while
GWR▸ publish punctuality and reliability percentages (
as in II's graphs). Obviously these are related, but exactly how is unclear.
This year's target for cancellations is 0.44%, and the floor is 0.55%. The actual, I'm sure, is way higher than that. In fact, I suspect it's higher than the default level in the contract - that is currently 1.1%, having jumped up from 0.72% in August 2018 (the target and floor didn't step up). The contract allows
DfT» a lot of discretion in how they react to that kind of thing - in GWR's case they set up the "Western Route Supervisory Board", and may claim that's all they need to do.
The upshot is that GWR are paying the full extra amount, and the actual cancellations rate won't matter until it gets down much lower. The payment per percent is higher because CASL is above target (how would it not be?) - and is £11,737,325, uprated by
RPI▸ from 2015. Since the number it multiples is only 0.11, the final amount is roughly £1.44M.
*
If anyone wants to check up on this in the updated franchise agreement (contract), it's all in schedule 7.1 from page 380 on.