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    Cost-efficiency - Portugal

    Download Report

    Terminal charging zone

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 69 NA NA NA
    Determined costs 68 39 42 44
    Difference costs 1 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 1.2% 1.3% 1.4%
    Determined inflation index NA 103.6 104.9 106.4
    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

    The AUC for the combined year 2020-2021 is in line with the planned DUC (-0.1%, or -0.29 €2017). This is due to the combination of higher than planned TNSUs (+1.9%) and higher than planned terminal costs in real terms but in a lesser proportion (+1.7%, or +1.2 M€2017).

    Terminal service units

    The difference between actual and planned TNSUs (+1.9%) falls within the ±2% dead band. Thus the resulting additional terminal revenue is kept by the ANSPs.

    Terminal costs by entity

    Actual real terminal costs for 2020-2021 are +1.7% (+1.2 M€2017) higher than planned. This result is driven by the main ANSP, NAV Portugal (+1.8%, or +1.2 M€2017), while the METSPs costs are in line with the plan and NSA costs are -1.7% lower than planned.

    Terminal costs for the main ANSP at charging zone level

    Overall, the terminal costs in real terms for NAV Portugal in 2020-2021 were higher than the determined costs from the performance plan (by +1.8%, or +1.2 M€2017). This results from:
    - higher staff costs (+1.4% for 2020-2021), “mainly due to the following factors: i) Higher pension fund costs, namely in NAV/CTA-MT; ii) Contingent liabilities arising from specific situations in which ATCOs do not meet the requirements for access to retirement status; iii) Capitalized work that did not materialize at the same level as planned.”
    - lower other operating costs (-2.7%), “mainly explained by lower spending on IT assistance and other outsourced services, repair and maintenance, communication and travel.”
    - higher depreciation (+5.4%); and higher cost of capital (+17.8%), due to a “higher than expected incorporation of investments over the period”, also “reflected in the net book value of fixed assets”.

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

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 244.47
    Inflation adjustment 0.00
    Cost exempt from cost-sharing 1.86
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) -0.25
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues 0.00
    Application of lower unit rate 0.00
    Total adjustments 1.61
    AUCU 246.08
    AUCU vs. DUC + 0.7%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments 536.4 1.90
    Competent authorities and qualified entities costs -10.8 -0.04
    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 525.6 1.86
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 (246.22€) is +0.7% higher than the nominal DUC (244.47€) which includes DUC initially charged: 148.84€; and to be charged: 95.62€. The difference between these two figures (+1.75€/SU) is due to:
    - the impact of adjustments resulting from the costs exempt from cost-sharing mechanism (+2.00€/SU); and
    - the deduction of the traffic adjustment (-0.25€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years.
    It should be noted that Portugal decided not to charge the inflation adjustment for 2020-2021 to airspace users.

    The share of regulatory result in the AUCU (before the deduction of other revenues) is 3.1%.

    Regulatory result (RR)

    Focus on regulatory result

    NAV Portugal net gain on activity in Portugal terminal charging zone in the combined year 2020-2021
    NAV Portugal generated a net gain of +0.6 M€, resulting from a loss of -0.6 M€ arising from the cost sharing mechanism and a gain of +1.2 M€ arising from the traffic risk sharing mechanism.
    NAV Portugal overall regulatory results (RR) for the terminal activity
    Ex-post, the overall RR corresponding to the net gain from the terminal activity mentioned above (+0.6 M€) and the RoE (+1.5 M€) amounts to +2.1 M€ (3.1% of the terminal revenues). The resulting ex-post rate of return on equity is 8.3%, which is higher than the 6.0% planned in the PP.

     
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