Cost-efficiency - Sweden

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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 46 NA NA NA
Determined costs 46 21 21 22
Difference costs 0 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 4.8% 2.2% 1.7%
Determined inflation index NA 112.4 114.9 116.9
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 was -4.1% (or -162.86 SEK2017, -16.91 €2017) lower than the planned DUC resulting from the combination of higher than planned TNSUs (+3.9%) and slightly lower than planned terminal costs in real terms (-0.4%, or -1.6 MSEK2017, -0.2 M€2017).

Terminal service units

The difference between actual and planned TNSUs (+3.9%) falls outside the ±2% dead band. Hence the resulting additional terminal revenue is shared between the ANSPs and airspace users, with the main ANSP (LFV) retaining an amount of 8.4 MSEK (0.8 M€).

Terminal costs by entity

Actual real terminal costs are slightly lower than planned (-0.4% or -0.2 M€2017). This is driven by the other ANSP, Swedavia (-3.8%, or -0.4 M€2017) and MET SP (-7.7%, or -0.1 M€2017), while the actual costs of the main ANSP, LFV are slightly higher than planned (+0.9%, or +0.3 M€2017). NSA costs are close to the planned costs (-0.5%).

Terminal costs for the main ANSP at charging zone level

The slightly higher than planned terminal costs in real terms for LFV in 2020-2021 reflect a combination of:
- lower staff costs (-1.5%); due to lower than planned pension costs. In addition, “staff costs were reduced by the revenues for staff participating in projects or other parts not financed by terminal charges”;
- significantly higher other operating costs (+14.7%); mainly due to higher training costs;
- no depreciation costs are reported for LFV since these costs are fully borne by the other ANSP (Swedavia, airport operator) owning the CNS infrastructure at Arlanda;
- nevertheless, LFV reports the cost of capital (computed on costs exempt from cost sharing from RP2), which turned out higher than planned (+6.2%); linked with a higher interest rate on debt used to compute the cost of capital.

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 403.06
Inflation adjustment 1.91
Cost exempt from cost-sharing −1.57
Traffic risk sharing adjustment −5.11
Traffic adj. (costs not TRS) −0.33
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues −3.37
Application of lower unit rate 0.00
Total adjustments −8.46
AUCU 394.60
AUCU vs. DUC −2.1%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments 43.9 0.40
Competent authorities and qualified entities costs −0.4 0.00
Eurocontrol costs 0.0 0.00
Pension costs −216.8 −1.97
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing −173.4 −1.57

The actual unit cost incurred by airspace users (AUCU) in respect of terminal activities in the Sweden-Arlanda terminal charging zone for the combined year 2020-2021 (4,077.63 SEK or 394.68 €) is -2.1% lower than the nominal DUC (4,163.13 SEK or 403.06 €), which includes DUC initially charged: 1,472.46 SEK or 142.95 €; and to be charged: 2,690.67 SEK or 260.11 €. The difference between these two figures (-85.50 SEK/SU or -8.38 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+19.41 SEK/SU or +1.91 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-15.12 SEK/SU or -1.49 €/SU);
- the deduction of traffic risk sharing (-51.76 SEK/SU or -5.11 €/SU) and traffic (-3.33 SEK/SU or -0.33 €/SU) adjustments; and,
- the deduction of the other revenues (-34.69 SEK/SU or -3.37 €/SU).
The share of regulatory result in the AUCU (before the deduction of other revenues) is 3.6%.

Regulatory result (RR)

LFV net gain on terminal activity in the Sweden-Arlanda terminal charging zone in the combined year 2020-2021
LFV generated a net gain of +3.8 MSEK (+0.4 M€), as a combination of a loss of -4.6 MSEK arising from the cost sharing mechanism and a gain of +8.4 MSEK arising from the traffic risk sharing mechanism.
LFV overall regulatory results (RR) for the terminal activity
Ex-post, the overall RR is equal to the net gain from the terminal activity mentioned above and amounts to +3.8 MSEK (1.1% of the terminal revenues). The resulting ex-post rate of return on equity is 10.5%, which is higher than the 0.0% RoE planned in the PP.