Route-level efficiency benefit sharing (REBS) mechanism

As part of our 2013 periodic review (PR13), we decided to replace the existing efficiency benefit sharing mechanism (EBSM) with a route level incentive mechanism for control period 5 (CP5), which runs from 1 April 2014 to 31 March 2019.

The route level efficiency benefit sharing (REBS) mechanism will encourage Network Rail and train operators (passenger and freight) to work together and allow both to share in Network Rail's efficiency gains or losses on an annual basis.

Further to chapter 19 of our PR13 final determination, which sets out our decisions on REBS, we have developed a guide to explain the key features of REBS and to provide examples of how REBS will work in practice during CP5. REBS payments for each year of CP5 are published as part of our annual efficiency and finance assessment of Network Rail.

We will update the REBS guide from time-to-time to include new information and to reflect feedback from stakeholders. If we do make changes to the guide, we will publish the updated guidance on this webpage and send it to train operators (both passenger and freight) and Network Rail.

Opting-out of REBS

Train operators have three months from the start of CP5 to decide whether to participate in REBS for CP5, ie whether to exercise their right to opt-out of the mechanism. There are also some circumstances where train operators can opt-out of REBS within CP5.

To opt out at the start of CP5, train operators need to send an opt-out notice to Network Rail by 30 June 2013, setting out their intention to opt-out of REBS in CP5. Train operators that do not opt-out will automatically be 'opted-in' to REBS for the whole of CP5.

Template versions of the opt-out notices, contained in track access agreements, are set out below: