It is important to note that the compensation paid for NR responsible delays is designed to offset the loss in passenger revenue that is experienced as a result of poor performance.
This is necessary, as SWT pays the Department for Transport a premium every year, (c.£395m net last year) irrespective of performance.
The payment rates are set by the ORR, and are well correlated to the revenue loss experienced, the costs of disruption and refunds to passengers.
When all three elements are accounted for, we cannot make money from poor performance - which is as it should be.
This rightly motivates us to invest in performance schemes, such that improved performance results in higher revenue, lower disruption costs and refunds, therefore improved financial performance.