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        • Regulatory Result

    Cost-efficiency - Germany

    Download Report

    Terminal charging zone

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 576 NA NA NA
    Determined costs 584 294 305 327
    Difference costs -8 NA NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 1.1% 1.5% 1.7%
    Determined inflation index NA 107.2 108.8 110.6
    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

    The AUC for the combined year 2020-2021 is lower than the planned DUC (by -2.7%, or -11.28 €2017). This is due to the combination of higher than planned TNSUs (+0.8%) and lower than planned terminal costs in real terms (by -1.9%, or -10.4 M€2017).

    Terminal service units

    The difference between actual and planned TSUs (+0.8%) falls within the ±2% dead band. Hence the resulting gain is kept by the ANSPs.

    Terminal costs by entity

    Actual real terminal costs for 2020-2021 are -1.9% (-10.4 M€2017) lower than planned. This result is driven by the main ANSP, DFS (-1.9%, or -10.5 M€2017), the METSP (+1.9%, or +0.2M€2017) and the NSA costs (-4.9%, or -0.1 M€2017).

    Terminal costs for the main ANSP at charging zone level

    Overall, the terminal costs in real terms for DFS in 2020-2021 were lower than the determined costs from the performance plan (by -1.9%, or -10.5 M€2017 lower). This results from:
    - slightly higher staff costs (+0.6%),
    - lower other operating costs (-1.6%), due “a number of several smaller measures and components as travel-expense, education and training, allowance on receivables.”
    - lower depreciation (-4.3%);
    - lower cost of capital (-68.0%) due to a positive financial result in 2021; and
    - exceptional items corresponding to the IFRS conversion effects in line with the plan (-0.5%).

    Note: When expressed in €2017, the depreciation and cost of capital are not adjusted for inflation, in accordance with Article 26 of Regulation (EU) 2019/317.

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

    AUCU components (€/SU) – 2020-2021
    Components of the AUCU in 2020-2021 €/SU
    DUC 441.14
    Inflation adjustment 1.84
    Cost exempt from cost-sharing -2.09
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) -0.08
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues -2.42
    Application of lower unit rate -2.06
    Total adjustments -4.81
    AUCU 436.34
    AUCU vs. DUC -1.1%
    Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
    New and existing investments -2,048.7 -1.54
    Competent authorities and qualified entities costs -87.4 -0.07
    Eurocontrol costs 0.0 0.00
    Pension costs -648.6 -0.49
    Interest on loans 0.0 0.00
    Changes in law 0.0 0.00
    Total cost exempt from cost risk sharing -2,784.7 -2.09
    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 Germany terminal charging zone (436.34€) is -1.1% lower than the nominal DUC (441.14€) which includes DUC initially charged: 139.47€; and to be charged: 301.67€. The difference between these two figures (-4.81€/SU) is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+1.84€/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-2.09€/SU);
    - the deduction of the traffic adjustment (-0.08€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years;
    - the deduction of the other revenues (-2.42€/SU); and
    - the application of a lower unit rate as foreseen in Art. 29(6) in year 2021 (-2.06€/SU).
    The share of regulatory result in the AUCU (befored the deduction of other revenues) is 2.1%.

    Regulatory result (RR)

    Focus on regulatory result

    DFS net gain on activity in Germany terminal charging zone in the combined year 2020-2021
    DFS incurred a net gain of +12.5 M€, resulting from a gain of +7.8 M€ arising from the cost sharing mechanism and a gain of +4.8 M€ arising from the traffic risk sharing mechanism.
    DFS overall regulatory results (RR) for theterminal activity
    Ex-post, the overall RR corresponds to the net gain from the en route activity mentioned above (+12.5 M€) as the RoE for DFS has been set to zero throughout RP3. The ex-post RR corresponds to 2.2% of the en route revenues). The resulting ex-post rate of return on equity is 10.8%, compared to 0% planned in the PP.

     
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