Cost-efficiency - France

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Terminal charging zone - France Zone 2

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 392 NA NA NA
Determined costs 382 190 191 192
Difference costs 10 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.2% 1.3% 1.4%
Determined inflation index NA 106.3 107.7 109.3
Actual inflation rate NA NA NA NA
Actual inflation index NA NA NA NA
Difference inflation index (p.p.) NA NA NA NA

AUC vs. DUC

In the combined year 2020-2021, the terminal AUC was +1.7% (or +10.9€2017) higher than the planned DUC. This results from the combination of higher than planned TNSUs (+0.4%) and higher than planned terminal costs in real terms (+2.1%, or +7.8 M€2017).

Terminal service units

The difference between actual and planned TNSUs (+0.4%) falls within the ±2% dead band. Hence the resulting additional terminal revenue is kept by the ANSPs.

Terminal costs by entity

Actual real terminal costs are +2.1% (+7.8 M€2017) higher than planned. This is driven by the main ANSP, DSNA (+2.4%, or +7.9 M€2017), and NSA costs (+32.6% or +0.8 M€2017), whereas costs for the MET service provider are -3.0% (or -0.9 M€2017) lower than planned.

Terminal costs for the main ANSP at charging zone level

The higher than planned terminal costs in real terms for DSNA (+2.4%, or +7.9 M€2017) result from:
- slightly lower staff costs (-0.1%);
- higher other operating costs (+11.5%);
- lower depreciation (-2.7%), mainly in relation with the postponement of some commissioning from 2021 to 2022 and the transfer of investment costs to project related OPEX costs;
- higher cost of capital (+6.7%), due to increase in both asset base (+2.3%) and WACC (+0.1 p.p.);
- higher deduction for VFR exempted flights (+1.4%).

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 684.85
Inflation adjustment 2.98
Cost exempt from cost-sharing 0.16
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) −0.27
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing −145.37
Other revenues −94.49
Application of lower unit rate 0.00
Total adjustments −236.99
AUCU 447.86
AUCU vs. DUC −34.6%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments −665.0 −1.19
Competent authorities and qualified entities costs 753.8 1.34
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 88.7 0.16

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 for France terminal charging zone 2 (447.86€) is -34.61% lower than the nominal DUC (684.85€) which includes DUC initially charged: 332.16€; and to be charged: 352.69€. The difference between these two figures (-236.99€/SU) is due to:
- cross-financing from France terminal charging zone 1 (-145.37€/SU);
- the positive inflation adjustment resulting from higher than planned inflation (+2.98€/SU);
- the deduction of the traffic adjustment (-0.27€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years;
- the deduction of the other revenues (-94.49€/SU);
- and the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+0.16€/SU).
The share of regulatory result in the terminal AUCU is 0.3.%.

Regulatory result (RR)

DSNA net loss on activity in the France terminal charging zone 2 in the combined year 2020-2021
DSNA’s net loss amounts to -7.3 M€ due to loss of -8.9 M€ from the cost sharing mechanism and gain of +1.6 M€ from the traffic risk sharing mechanism.

DSNA overall regulatory results (RR) for the terminal charging zone 2 activity
Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-7.3 M€) and the actual RoE (+7.5 M€) amounts to +0.2 M€ (0.1% of the terminal revenues). The resulting ex-post rate of return on equity is 0.5%, which is lower than the 17.1% planned in the PP.