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  1. Cost-efficiency
  • Year report
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  • Hungary
  • Overview
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    • Cost-efficiency

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  • Cost-efficiency
    • PRB monitoring
    • En route CZ
      • Unit cost
      • AUCU
      • Regulatory Result
    • Terminal CZ
      • Unit cost
      • AUCU
      • Regulatory Result

Cost-efficiency - Hungary

Download Report

PRB monitoring

▪ The en route 2020/2021 actual unit cost of Hungary was 55.73 €2017, -2.3% lower than the determined unit cost (57.05 €2017). The terminal actual unit cost was 479.21 €2017, -3.0% lower than the determined unit cost (494.02 €2017).

▪ The en route 2021 actual service units (1,727K) were in line with determined service units (1,727K).

▪ In 2021, actual total costs were -4.2 M€2017 lower (-4.5%) than determined. Hungary decreased all cost categories except cost of capital (+0.9%). The reduction was mainly due to lower staff costs (-3.5 M€2017, or -7.8%) mostly driven by a decrease in headcounts (mainly non-ATCO) and a restructuration of ATCO wage system to make it traffic dependent.

▪ HungaroControl spent 27 M€2017 in 2021 related to costs of investments, +12% more than determined (24 M€2017). This was mainly driven by a higher than planned property management fee (i.e. leasing fee), however the NSA explained that the increase should be compensated in the next years.

▪ The en route actual unit cost incurred by users in 2020/2021 was 53.38€, while the terminal actual unit cost incurred by users was 464.71€.

En route charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 191 NA NA NA
Determined costs 195 124 127 132
Difference costs -4 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 3.5% 3.3% 3.0%
Determined inflation index NA 118 121.9 125.5
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 planned in DUC (by -2.3%, or -408.66HUF2017, or -1.32€2017). This results from the lower than planned en route costs in real terms (by -2.3%, or -1,287.2 MHUF2017, or -4.2 M€2017).

En route service units

Actual total en route service units are in line with planned TSUs, as plan was presented in February 2022.

En route costs by entity

Actual real en route costs for 2020-2021 are -2.3% (-1 287.2 MHUF2017, or -4.2 M€2017) lower than planned. This result is driven by main ANSP, HungaroControl (-2.3%, or -3.6 M€2017), the MET service provider (-2.9%, or -0.1 M€2017) and NSA/EUROCONTROL costs (-2.5%, or -0.5 M€2017).

En route costs for the main ANSP at charging zone level

The lower than planned en route costs in real terms for HungaroControl in 2020-2021 (-2.3%, or -3.6 M€2017 lower) results from:
- lower staff costs (-4.1%), due to “decrease in headcount (mainly in non-ATCO business functions), restructuring of ATCO wage system (more traffic dependent), consequently savings in payroll taxes/contributions;”
- slightly higher other operating costs (+0.1%);
- lower depreciation (-0.7%), “due to assets placed in service later than planned, revision of some assets’ useful life;”
- higher cost of capital (+0.7%), due to increase in net current assets.

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 53.91
Inflation adjustment 0.30
Cost exempt from cost-sharing 0.68
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) 0.00
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -1.55
Application of lower unit rate 0.00
Total adjustments -0.57
AUCU 53.35
AUCU vs. DUC -1.1%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments 2,570.8 0.82
Competent authorities and qualified entities costs 235.7 0.07
Eurocontrol costs -651.6 -0.21
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 2,154.9 0.68
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 Hungary en route charging zone (18 929.831HUF or 53.38€) is -1.0% lower than the nominal DUC (19,116.70HUF or 53.91€) which includes DUC initially charged: 12,121.09HUF (or 34.15€); and to be charged: 6,995.60HUF (or 19.76€). The difference between these two figures (-187.39HUF/SU or -0.54€/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+105.86HUF/SU or +0.30€/SU);
- the deduction of the other revenues (-538.26HUF/SU or -1.52€/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+245.00HUF/SU or +0.68€/SU).

The share of regulatory result in the AUCU is 7.5%.

Regulatory result (RR)

Focus on regulatory result

HungaroControl net gain on en route activity in the Hungary charging zone in the combined year 2020-2021
HungaroControl’s net gain amounts to +6.2 M€, arising from the cost sharing mechanism.

HungaroControl 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 (+6.2 M€) and the actual RoE (+6.6M€) amounts to +12.7 M€ (8.4% of the en route revenues). The resulting ex-post rate of return on equity is 9.9%, which is higher than the 5.1% planned in the PP.

 
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