FIRSTGROUP is the first operator to sign new National Rail Contracts (NRCs) with the Department for Transport.
The new two-year deals came into force on May 30, ensuring continuity for TransPennine Express and South Western Railway after the end of the previous Emergency Recovery Measures Agreements (ERMAs).
NRCs represent a new structure for agreements between train operating companies and the DfT, replacing the previous revenue risk-based franchising system. Under NRCs, the Government holds all revenue risk and almost all cost risk for the former franchises, with the operator paid a fixed management fee plus performance incentives for punctuality, cleanliness and other customer-facing measures.
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