Cost-efficiency - Poland

PRB monitoring

▪ The 2020 actual service units (2,146K) were 57% lower than the actual service units in 2019 (4,959K).

▪ In 2020, Poland reduced total costs by 11 M€2017 (-6%) compared to 2019 actual costs. The reduction was mainly driven by a decrease of 16 M€2017 (-13%) in staff costs due to furloughs, temporary suspension of hiring, contribution to the occupational pension scheme and group insurance, reduction of overtimes and bonuses.

▪ PANSA spent 43 M€2017 in 2020 related to costs of investments, 10% less than planned in the 2019 draft performance plan (48 M€2017). The NSA reported that this reduction is attributable to both savings to meet financial capabilities and restrictions impacting the ability to execute some investments.

En route charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 330 NA NA NA
Determined costs 377 206 215 223
Difference costs −47 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 2.5% 2.5% 2.5%
Determined inflation index NA 113.4 116.2 119.1
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 en route AUC was lower by -13.2% (or -42.15 PLN2017 or -9.91 €2017) comparing to the DUC. This was in particular, the effect of the lower than planned en route costs in real terms (-12.5%, -187.7 MPLN2017 or -44.1 M€2017).

En route service units

The difference between actual and planned TSU (+0.8%) is within the ±2% dead-band which results in additional revenues kept by the ANSPs.

En route costs by entity

Actual en route costs are -12.5% lower than planned (-44.1 M€2017) which is mainly driven by the lower costs for PANSA (-14.0% or -43.4 M€2017). Slightly lower actual costs are observed for NSA/EUROCONTROL, -2.1% (or -0.6 M€2017) and the METSPs, -1.0% (or -0.1 M€2017).

En route costs for the main ANSP at charging zone level

The lower than planned en route costs in real terms for PANSA (-14.0%, or -43.4 M€2017) result from:
- lower en route staff costs (by -18.3% or -39.0 M€2017), “resulting from a number of factors, including evolution of provisions also those for one-off elements of staff benefits reflected in the RP3 determined cost”, lower remuneration costs (due to lower employment level) and lower actual level of bonuses and rewards;
- lower en-route other operating costs (by -14.3% or -5.3 M€2017) resulting from costs cutting measures in 2021;
- higher, by +2.4% (or +1.1 M€2017) depreciation due to the difference in the useful life of some assets;
- lower, by -1.9% (or -0.3 M€2017) actual cost of capital due to slightly lower value of asset base;
- lower deduction for the costs of exempted VFR flights (-9.7%).

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 75.85
Inflation adjustment 0.57
Cost exempt from cost-sharing 0.17
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 −2.46
Application of lower unit rate 0.00
Total adjustments −1.78
AUCU 74.06
AUCU vs. DUC −2.3%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments 1,217.6 0.26
Competent authorities and qualified entities costs 33.5 0.01
Eurocontrol costs −602.8 −0.13
Pension costs 0.0 0.00
Interest on loans 177.8 0.04
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 826.1 0.17

The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (333.42 PLN or 74.06€) is -2.3% lower than the nominal DUC (341.41 PLN or 75.85€), which includes DUC initially charged: 200.45 PLN (or 44.49€); and to be charged: 140.96 PLN (or 31.35€). The difference between these two figures (-7.99 PLN/SU or -1.78€/SU) is due to:
- the positive inflation adjustment (+2.61 PLN/SU or +0.57€/SU) resulting from higher than planned inflation;
- the positive adjustment for costs exempt from cost-sharing (+0.80 PLN/SU or +0.17€/SU);
- the deduction of traffic adjustment (-0.31 PLN/SU or -0.07€/SU), for the costs not subject to traffic risk sharing to be reimbursed in future years; and
- the deduction of the other revenues (-11.08 PLN/SU or -2.46€/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 17.1% (or 16.9% while calculating in EUR) .

Regulatory result (RR)

PANSA net gain on activity in the en route charging zone in the combined year 2020-2021
PANSA’s net gain amounts to +225.9 MPLN (or +49.5 M€), mainly due to the gains of +214.9 MPLN from the cost sharing mechanism, and of +11.0 MPLN from the traffic risk sharing mechanism.
PANSA overall regulatory results (RR) for the en route activity
Ex-post, the overall RR taking into account the net gain from the en route activity mentioned above (+49.5 M€) and the actual RoE (+50.8 MPLN or +11.2 M€) amounts to +276.8 MPLN or +60.9 M€ (19.2% of the en route revenues). The resulting ex-post rate of return on equity is 13.0%, which is significantly higher than the 2.4% planned in the PP.