Recent full franchises include performance payments for Short Formation (and older ones something similar), but the current franchise agreement for
GW▸ does not. That may be because of its "coping with the upheavals" nature, though I don't have the previous one for comparison. If you're wondering what you've been missing...
The measure used is the percentage of trains shorter than specified, by any amount. There are let-outs for force majeure and other good excuses, as well as a back-up right for the SoS to write a note to teacher. That measure obviously depends on all trains in the required service having specified lengths, which isn't the case for
GWR▸ . The only stated capacity requirement is on total peak seats into or out of Paddington.
For each period the measure is compared, as a moving annual average, with breach and default levels. if it exceeds these it may trigger warning notices and demands for action plans and the like - but not franchise payments.
Annually, the year's average is used to compute a "performance sum". This is the same for each performance measure, based on cap, target, and floor levels that get tighter over the franchise. However, for short formation the target is zero. That makes the computation simpler, and also removes the bonus payment for beating the target (this does apply to minutes delay, cancellations and serious lateness, customer surveys, etc, etc).
The basic method each time is to multiply the actual (capped and floored) minus the target by a sum of money adjusted for
RPI▸ . This is less simple than it sounds, for a start because the measures are all figures of demerit, so the cap is small and thee floor large!. But, allowing for signs, you get a bonus that the
DfT» pays to the
TOC▸ or a "penalty". The TOC does not pay that to the
DFT▸ (except in the last year), instead it has to spend the money making things better. Pasting bits together, the TOC must spend "in order to secure ... an improvement in the Franchisee's performance against the Annual Short Formation Benchmark so that such level is equal to the Annual Target Performance Level for the Annual Short Formation Benchmark ... or, in each case, as the Secretary of State may otherwise direct".
That comes from the East Anglia franchise, chosen as the most similar to GW. In that case the basic sum of money changes at an "intermediate level", but the target is still zero. However, the actual amounts are suppressed. In the draft SW agreement (with the
ITT▸ ) the suggested amounts are there, though they may have been changed in the bidding process. The agreed agreement is not yet public.
The figures in those two are:
| breach | default | inter'te | floor |
EA start | 0.72 | 1.07 | 0.25 | 0.65 |
EA end | 0.57 | 0.70 | 0.12 | 0.52 |
SW start | 1.77 | 2.52 | - | 1.50 |
SW end | 1.13 | 1.88 | - | 0.87 |
And that amount for
SWR» ... it's £1,000,000. So the most they can be paid or have to spend in a year is £15,000. Not to be used or buying new carriages, obviously - though of course fixing/replacing ones that don't work is the
ROSCO» 's responsibility. Note that some other measures have higher amounts, up to £20M for cancellations.