Train Operating Companies (TOC), operate under a number of incentive and penalty schemes. One of these schemes is the Punctuality Incentive Payment (PIP) scheme. Under this scheme TOCs incur financial penalties for failing to run punctual services, where this is their fault.

TRACE is an operational system that allows responsibilities and minutes (time) for train incidents (delays) to be recorded. These delays count against the TOC under the PIP scheme. Immediate and root causes for these delays are also recorded. Establishing and recording the responsibilities and the root causes of the delays will allow the TOC management to reduce the delay minutes that are the TOC's fault. This will result in fewer penalties under the PIP scheme and will contribute towards higher customer satisfaction through a more punctual railway.

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