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    Cost-efficiency - Switzerland

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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 180 NA NA NA
    Determined costs 188 95 94 95
    Difference costs −8 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 0.3% 0.8% 0.9%
    Determined inflation index NA 101.7 102.5 103.4
    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

    In the combined year 2020-2021, the terminal AUC was -4.5% (or -39.28 CHF2017, -35.35 €2017) lower than the planned DUC. This results from the combination of slightly higher than planned TNSUs (+0.2%) and lower than planned en-route costs in real terms (-4.4%, or -9.1 MCHF2017, -8.2 M€2017).

    Terminal service units

    The difference between actual and planned TNSUs (+0.2%) falls within the ±2% dead band. Hence the resulting additional terminal revenue is kept by the ANSPs.

    Terminal costs by entity

    Actual real terminal costs are -4.4% (-8.2 M€2017) lower than planned. This is driven by the main ANSP, Skyguide (-4.6%, or -8.2 M€2017), while the actual costs of the MET service provider and the NSA are in line with the determined costs (-0.03% and 0.0%, respectively).

    Terminal costs for the main ANSP at charging zone level

    Actual terminal costs in real terms are lower than planned by -4.6% overall (or -8.2 M€2017). However, the differences by nature of costs are distorted by the presentation of the additional costs caused by the change in the capitalisation rule in 2021 (+5.3 M€2017). Indeed, in order for these amounts not to be billed to airspace users, they have also been reported as negative exceptional items in the determined costs, but not in the actual costs (-100% of negative exceptional costs, or +5.3 M€2017).
    - the significant difference in staff costs (which is overall of -12.7 M€2017 or -11.4%), is mainly due to the postponement of the “provision for ATCO retirement age”, which was contained in the 2021 determined costs.

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

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 811.99
    Inflation adjustment 1.46
    Cost exempt from cost-sharing 1.57
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) −0.07
    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 2.97
    AUCU 814.95
    AUCU vs. DUC +0.4%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments 377.3 1.57
    Competent authorities and qualified entities costs 0.0 0.00
    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 377.3 1.57
    Focus on AUCU

    The actual unit cost incurred by airspace users (AUCU) in respect of terminal activities in the Switzerland terminal charging zone for the combined year 2020-2021 (876.63CHF or 814.95€) is +0.4% higher than the nominal DUC (873.43CHF or 811.99€) which includes DUC initially charged: 392.40CHF or 364.77€; and to be charged: 481.03CHF or 447.22€. The difference between these two figures +3.21CHF/SU or+2.97€/SU is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+1.58CHF/SU or +1.46€/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+1.70CHF/SU or +1.57€/SU); and
    - the deduction of the traffic adjustment (-0.07CHF/SU or -0.07€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years.
    The share of regulatory result in the AUCU (befored the deduction of other revenues) is 6.4%.

    Regulatory result (RR)

    Focus on regulatory result

    Skyguide net gain on activity in Switzerland terminal charging zone in the combined year 2020-2021
    Skyguide incurred a net gain of +10.0 MCHF (+9.3 M€), combining a gain of +9.7 M CHF arising from the cost sharing mechanism and a gain of +0.3 M CHF arising from the traffic risk sharing mechanism.
    Skyguide overall regulatory results (RR) for the terminal activity
    Ex-post, the overall RR corresponding to the net gain from the en route activity mentioned above (+10.0 MCHF) and the RoE (+3.5 MCHF) amounts to a gain of +13.5 MCHF (6.7% of the terminal revenues). The resulting ex-post rate of return on equity is 12.3%, compared to 3.6% planned in the PP.

     
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