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      • En route CZ - Spain Continental
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      • En route CZ - Spain Canarias
        • Unit cost
        • AUCU
        • Regulatory Result
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        • Unit cost
        • AUCU
        • Regulatory Result

    Cost-efficiency - Spain

    Download Report

    En route charging zone - Spain Canarias

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 186 NA NA NA
    Determined costs 188 98 100 102
    Difference costs -2 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 1.3% 1.5% 1.6%
    Determined inflation index NA 104.9 106.5 108.2
    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

    In the combined year 2020-2021, the AUC was lower than the planned DUC (by -5.1%, or -5.32€2017). This results from the combination of higher than planned TSUs (+3.3%) and lower than planned en route costs in real terms (by -1.9%, or -3.6 M€2017).

    En route service units

    The difference between actual and planned TSUs (+3.3%) falls outside the ±2% dead band, but does not exceed the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional en routel revenues is therefore shared between the ATSP and the airspace users, with the ATSP (ENAIRE) retaining an amount of +3.3 M€2017.

    En route costs by entity

    Actual real en route costs for 2020-2021 are -1.9% (-3.6 M€2017) lower than planned. This result is driven by the main ANSP, ENAIRE (-2.6%, or -3.5 M€2017), the MET service provider (-0.4% or -0.1 M€2017) and the NSA/EUROCONTROL costs (-3.4%, or -0.5 M€2017), whereas other ANSPs cost are higher than planed (+2.5% or +0.5 M€2017).

    En route costs for the main ANSP at charging zone level

    Lower then planned en route costs in real terms for ENAIRE in 2020-2021 (-2.6%, or -3.5 M€2017 lower) results from:
    - lower staff costs (-2.9%), although the additional information to the en route reporting tables clarify that “two provisional rulings unfavourable to ENAIRE, as a consequence of claims of control staff, have impacted in 2021 Annual Accounts for ENAIRE, with a total amount of 32.2M€ higher salaries. This mentioned total amount, although included as higher staff expenses in the 2021 ENAIRE accounts, has not been considered in the costs submitted by ENAIRE pending national Supreme Court final rulings”;
    - lower other operating costs (-5.2%), as result of restrictive expenditure policy;
    - higher depreciation (+2.1%);
    - lower cost of capital (-6.0%), due to lower asset base (-4.5%) and WACC.

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

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 107.38
    Inflation adjustment 0.78
    Cost exempt from cost-sharing -0.17
    Traffic risk sharing adjustment -0.70
    Traffic adj. (costs not TRS) -0.90
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing -18.81
    Other revenues -0.48
    Application of lower unit rate 0.00
    Total adjustments -20.28
    AUCU 87.10
    AUCU vs. DUC -18.9%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments 218.3 0.12
    Competent authorities and qualified entities costs -69.6 -0.04
    Eurocontrol costs -462.6 -0.26
    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 -314.0 -0.17
    Focus on AUCU

    The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 for Spain Canarias en route charging zone (87.05€) is -18.9% lower than the nominal DUC (107.38€) which includes DUC initially charged: 49.54€; and to be charged: 57.84€. The difference between these two figures (-20.33€/SU) is due to:
    - cross-financing from Spain Continental (-18.81/SU);
    - the positive inflation adjustment resulting from higher than planned inflation (+0.78€/SU);
    - the deduction of the traffic risk sharing adjustment (-0.70€/SU) and the traffic adjustment (-0.90€/SU) for the costs not subject to traffic risk sharing;
    - the deduction of the other revenues (-0.48€/SU);
    - and the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-0.22€/SU).
    The share of regulatory result in the AUCU is 8.0%.

    Regulatory result (RR)

    Focus on regulatory result

    ENAIRE net gain on en route activity in the Spain Canarias charging zone in the combined year 2020-2021
    ENAIRE’s net gain amounts to +7.1 M€, as a combination of a gain of +3.7 M€ arising from the cost sharing mechanism and a gain of +3.3 M€ arising from the traffic risk sharing mechanism.
    ENAIRE 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 (+7.1 M€) and the actual RoE (+5.3 M€) amounts to +12.4 M€ (8.6% of the en route revenues). The resulting ex-post rate of return on equity is 15.6%, which is higher than the 6.7% planned in the PP.

     
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