Cost-efficiency - Slovenia

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PRB monitoring

▪ The 2020 actual service units (264K) were 57% lower than the actual service units in 2019 (618K).

▪ Slovenia reduced total costs in 2020 by 2.6 M€2017 (-8%) compared to 2019 actual costs. The reduction is primarily driven by a decrease in staff costs of 2.7 M€2017 (-13%), resulting from delay of ATCOs employment.

▪ Slovenia Control spent 2 M€2017 in 2020 related to cost of investments, 59% less than planned in the 2019 draft performance plan (4.9 M€2017). Costs related to other investments and existing investments decreased compared to the plan. No explanation has been provided regarding this decrease.

En route charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 61 NA NA NA
Determined costs 63 35 36 37
Difference costs -2 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.5% 1.6% 1.8%
Determined inflation index NA 106 107.8 109.7
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 (93.23 €2017) was lower by -8.1% (or -8.21 €2017) compared with the DUC (101.44 €2017). This was the combined effect of the lower than planned en route costs in real terms (-3.4%, -2.1 M€2017) and higher total TSU (+5.1%).

En route service units

The actual TSUs exceed the planned level (+5.1%) and fall between the ±2% dead band and +10% threshold. Hence the resulting gain will be shared between the airspace users and the ANSPs.

En route costs by entity

Actual en route costs are -3.4% lower than planned (-2.1 M€2017) which is mainly driven by the lower costs for Slovenia Control (-3.4% or -1.8 M€2017). Actual 2020-2021 costs for METSP are higher by +3.1% (or +0.1 M€2017), while NSA/EUROCONTROL costs are lower by -6.5% (or -0.3 M€2017).

En route costs for the main ANSP at charging zone level

The lower than planned en route costs in real terms for Slovenia Control (-3.4%, or -1.8 M€2017) result from:
- lower than planned staff costs, by -3.7% (or -1.3 M€2017), due to lower salaries that remained in place in Q4 2021, to the same extent as for the Q1-Q3;
- lower other operating costs by -6.5% (or -0.5 M€2017), due to optimized/postponed contracts (equipment & telecommunication rentals);
- higher depreciation costs by +1.3% (or +0.1 M€2017); and,
- lower cost of capital by -2.1% (or -0.1 M€2017).

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 104.56
Inflation adjustment 0.45
Cost exempt from cost-sharing -0.52
Traffic risk sharing adjustment -1.90
Traffic adj. (costs not TRS) -0.65
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -5.98
Application of lower unit rate 0.00
Total adjustments -8.59
AUCU 95.97
AUCU vs. DUC -8.2%
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 -147.4 -0.23
Eurocontrol costs -180.3 -0.28
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 -327.6 -0.52

The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (96.06€) is -8.1% lower than the nominal DUC (104.56€), which includes DUC initially charged: 57.06€; and to be charged: 47.50€. The difference between these two figures (-8.50€/SU) is due to:
- the positive inflation adjustment (+0.45€/SU) resulting from higher than planned inflation;
- the deduction of the adjustment for costs exempt from cost-sharing (-0.42€/SU), to be reimbursed to airspace users in future years;
- the deduction of traffic risk sharing adjustment of -1.90€/SU to be reimbursed to the airspace users in future years;
- the deduction of traffic adjustment (-0.65€/SU), for the costs not subject to traffic risk sharing to be reimbursed in future years; and,
- the deduction of the other revenues (-5.98€/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 8.1%.

Regulatory result (RR)

Slovenia Control net gain on activity in the en route charging zone in the combined year 2020-2021
Slovenia Control’s net gain amounts to +3.6 M€, mainly due to the gains of +2.0 M€ from the cost sharing mechanism and of +1.6 M€ from the traffic risk sharing mechanism.
Slovenia Control 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 (+3.6 M€) and the actual RoE (+1.7 M€) amounts to +5.3 M€ (9.3% of the en route revenues). The resulting ex-post rate of return on equity is 32.3% which is higher than the 10.4% planned in the PP.