Mark Carne, CEO of Network Rail, said: “The CAP and I agree on the need to coordinate the priorities and incentives of Network Rail and franchise operators.” It is well known that the DfT is concerned that the newest franchises had only two or three bidders – and thus threaten to restrict competition. A DfT spokesperson said: “Before a franchise agreement expires, the ministry checks the size and size to ensure that the new train operation best meets the needs of passengers. 16.We asked the Department to explain how the agreement of advance fines for services that have not yet been provided was in the best interests of taxpayers and passengers. It submitted that the use of the service plan available in its contract with Govia Thameslink would not have benefited passengers, as administrative time would have been spent on “a large number of detailed requests” rather than focusing on improving performance. The Department informed us that it thought it had made a reasonable assessment based on the most pessimistic scenario of the disruption, and that subsequent improvements in performance meant that a penalty based on actual performance would be lower. He told us that, as part of the agreement, Govia Thameslink would pay more than it would have if the department had applied the terms of the contract.36 It does not believe that further fines will be required after September 2018.37 Govia Thameslink agrees that operational performance has increased, claiming that passenger satisfaction is increased.38 4.Passengers using the TSGN franchise have experienced a prolonged period of disruption. that almost started as soon as Govia Thameslink started operating trains on the franchise. In the first three years of the franchise, Govia Thameslink trains were the biggest delays across the entire rail network.4 Between July 2015 (when Govia Thameslink took over south rail traffic) and March 2017, 146,000 trains, 7.7% of train lines were cancelled or delayed by more than 30 minutes. This does not include trains that were cancelled in advance because Govia Thameslink expected significant disruption.5 Less than two-thirds of trains arrived at their destination within five minutes of their scheduled arrival time, over a particularly mediocre four-week period, between November and December 2016.6 The Department stated that it was intended to compensate for the services provided to passengers and to achieve a good result for taxpayers in the form of payments in Franchise. However, in the case of the TSGN franchise, the Department assured that the deductible was in the process of being delivered to the taxpayer, although passengers were severely disrupted.7 Until September 2017, the Department received $760 million from Govia Thameslink, about the amount of revenue it expected when it granted the deductible. , when the franchise began experiencing “a frightening level of delays and cancellations” when the franchise began when the franchise began arriving on time with less than two-thirds of the trains, the committee said. 11.The Department has structured its contract for the TSGN franchise so that Govia Thameslink does not withhold revenues from passenger fares. It accepted that Govia Thameslink may have been less than normal in avoiding union actions, as its revenues would not change, even if passenger incomes were declining or passenger compensation was due.27 The Department informed us that it had designed the contract to encourage Govia Thameslink to focus on the implementation of the Thameslink program.
28 the risk of revenues falling, the consequences of the risk that performance was not good enough were the responsibility of the operator.29 He said that officials also discussed reducing the risks associated with franchises at the private meeting of a London hotel last month, as part of a more comprehensive review of the sector.