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        • Regulatory Result

    Cost-efficiency - Czech Republic

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    Terminal charging zone

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 31 NA NA NA
    Determined costs 32 17 20 21
    Difference costs −1 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 2.0% 2.0% 2.0%
    Determined inflation index NA 112.8 115 117.3
    Actual inflation rate NA NA NA NA
    Actual inflation index NA NA NA NA
    Difference inflation index (p.p.) NA NA NA NA
    Focus on unit cost

    AUC vs. DUC

    In the combined year 2020-2021, the terminal AUC (12,769.02 CZK2017 or 485.30 €2017) was lower by -3.2% (or -427.91 CZK2017 or -16.26 €2017) comparing to the DUC (13,196.93 CZK2017 or 501.57 €2017). This was in particular, the effect of the lower than planned terminal costs in real terms (-3.5%, -28.2 MCZK2017 or -1.1 M€2017).

    Terminal service units

    The difference between planned and actual TNSUs (-0.3%) falls within the ±2% dead band. Hence, the resulting loss is borne by the main ANSP.

    Terminal costs by entity

    Actual terminal costs are -3.5% lower than planned (-1.1 M€2017) which is mainly driven by the lower costs for ANS CR (-3.7% or -1.1 M€2017). The differences in the actual costs for NSA and METSP are not significant, and correspond to -1.5% and -0.7% respectively.

    Terminal costs for the main ANSP at charging zone level

    The lower than planned terminal costs in real terms for ANS CR (-3.7%, or -1.1 M€2017) result from:
    - lower than planned staff costs by -1.2% (or -0.2 M€2017);
    - lower other operating costs by -15.8% (or -0.7 M€2017);
    - lower depreciation by -0.8% (or -0.1 M€2017);
    - deduction of the VFR exempted flights (-0.1 M€2017), while no deduction was foreseen in the PP.
    The lower execution of costs in 2020-2021 were the effect of measures implemented by ANS CR, and in particular: cancelation of benefits, limitation of the contribution to supplementary pension savings, reduction of basic salary and reduction in the number of staff. In the area of other operating costs the travel, maintenance and training costs were reduced. Cost of capital was not charged to the airspace users in 2020-2021.

    Actual unit cost incurred by the users (AUCU) (PI#1)

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 541.13
    Inflation adjustment 1.80
    Cost exempt from cost-sharing −1.20
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) 0.07
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues −0.51
    Application of lower unit rate −14.93
    Total adjustments −14.77
    AUCU 526.36
    AUCU vs. DUC −2.7%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments −69.2 −1.15
    Competent authorities and qualified entities costs −8.1 −0.13
    Eurocontrol costs 0.0 0.00
    Pension costs 5.5 0.09
    Interest on loans 0.0 0.00
    Changes in law 0.0 0.00
    Total cost exempt from cost risk sharing −71.8 −1.20
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (13,737.03 CZK or 526.46€) is -2.7% lower than the nominal DUC (14,115.72 CZK or 541.13€), includes DUC initially charged: 7,387.84 CZK (or 284.25); and to be charged: 6,727.88 CZK (or 256.88€). The difference between these two figures (-378.69 CZK/SU or -14.67 €/SU) results from:
    - the positive inflation adjustment resulting from higher than planned inflation (+46.07 CZK/SU or +1.80€/SU);
    - the deduction of the adjustment for costs exempt from cost-sharing (-30.65 CZK/SU or -1.20/SU);
    -the positive traffic adjustment (+1.89 CZK/SU or +0.07€/SU), for the costs not subject to traffic risk sharing;
    - the deduction of other revenues (-13.35 CZK/SU or -0.51€/SU); and
    - the deduction of -382.65 CZK/SU (-14.83€/SU) resulting from the application of the lower unit rate arising from the declared policy not to increase the level of terminal navigation unit rate above 6,800 CZK.
    The share of the regulatory result in the AUCU (before the deduction of other revenues) is 3.4% .

    Regulatory result (RR)

    Focus on regulatory result

    ANS CR’s net gain and overall regulatory result (RR) on activity in the terminal charging zone in the combined year 2020-2021
    ANS CR’s net gain amounts to +27.0 MCZK (or +1.1 M€) and is the result of the gain from the cost sharing mechanism (+29.6 MCZK), and a loss from the traffic risk sharing mechanism (-2.6 MCZK). As ANS CR did not charge the cost of capital to the airspace users in 2020 and 2021, the overall RR for terminal activity in 2020-2021 corresponds to the net gain as mentioned above (+27.0 MCZK or +1.1 M€).

     
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