Cost-efficiency - Romania

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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 35 NA NA NA
Determined costs 36 21 24 25
Difference costs -1 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 9.3% 4.0% 3.0%
Determined inflation index NA 125.9 130.9 134.8
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

The AUC for the combined year 2020-2021 is higher than the planned DUC (by +2.1%, or +39.05RON2017 or 8.55€2017). This is due to lower than planned TNSUs (-4.6%) and lower than planned terminal costs in real terms (by -2.6%, or -3.9 MRON2017 or -0.9M€2017).

Terminal service units

The difference between actual and planned TNSUs (-4.6%) falls between the -2% dead band and the -10% threshold. Hence the resulting loss is shared between the ANSP and the airspace users.

Terminal costs by entity

Actual real terminal costs for 2020-2021 are -2.6% (-0.9 M€2017) lower than planned. This result is driven by the main ANSP, Romatsa (-2.5%, or -0.8 M€2017) and the NSA costs (-20.8%, or -0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Overall, the terminal costs in real terms for Romatsa in 2020-2021 were lower than the determined costs from the performance plan (by -2.5%, or -0.8 M€2017 lower). This results from:
- lower staff costs (-1.3%), “due to cost restraining measures applied for both 2020-2021, offsetting higher than planned pensions costs related to the defined benefits provision”.
- lower other operating costs (-14.5%), “due mainly to a delay in the contracts for procedure design and flight validations and cost restraining measures applied to conserve cash-flow.”
- slightly higher depreciation (+0.9%), “due to an accounting error in forecasting” and
- higher cost of capital (+1.2%).

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 429.55
Inflation adjustment 2.81
Cost exempt from cost-sharing -0.68
Traffic risk sharing adjustment 7.60
Traffic adj. (costs not TRS) 1.24
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -2.18
Application of lower unit rate 0.00
Total adjustments 8.79
AUCU 438.35
AUCU vs. DUC + 2.0%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments 0.0 0.00
Competent authorities and qualified entities costs -49.7 -0.66
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans -1.5 -0.02
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -51.2 -0.68

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 (2,139.35RON or 438.35€) is +2% higher than the nominal DUC (2,096.02RON or 429.55€) which includes DUC initially charged: 1,275.32RON or 261.16€; and to be charged: 820.70RON or 168.39€. The difference between these two figures (+43.33RON/SU or +8.79€/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+13.83RON/SU or +2.81€/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-3.36RON/SU or -0.68€/SU);
- the traffic risk sharing adjustment (+37.38RON/SU or+7.60€/SU);
- the traffic adjustment (+6.11RON/SU or +1.24€/SU) for the costs not subject to traffic risk sharing to be charged in future years; and
- the deduction of the other revenues (-10.63RON/SU or -2.18€/SU).
The share of regulatory result in the AUCU (before the deduction of other revenues) is 5.4%.

Regulatory result (RR)

Romatsa net loss on terminal activity in the Romania charging zone in the combined year 2020-2021
Romatsa incurred a net loss of -0.1 MRON, as a combination of a gain of +4.2 MRON arising from the cost sharing mechanism and a loss of -4.3 MRON arising from the traffic risk sharing mechanism.
Romatsa overall regulatory results (RR) for the terminal activity
Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-0.1 MRON) and the actual RoE (+8.7 MRON) amounts to +8.7 MRON (5.4% of the en route revenues). The resulting ex-post rate of return on equity is 10.1%, which is the same as planned in the PP.