Cost-efficiency - Hungary

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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 35 NA NA NA
Determined costs 36 25 28 31
Difference costs -1 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

AUC vs. DUC

In the combined year 2020-2021, the terminal AUC was -3.0% (or -4,576.72HUF2017, or -14.81€2017) lower than the planned DUC. This results from lower than planned terminal costs in real term (-3.0%, or -301.6 MHUF2017, or -1.0 M€2017).

Terminal service units

Actual total terminal service units are in line with planned TNSUs, as plan was presented in February 2022.

Terminal costs by entity

Actual real terminal costs are -3.0% (-301.6 MHUF2017 or -1.0 M€2017) lower than planned. This is driven by the main ANSP, HungaroControl (-3.1%, or -1.0 M€2017).

Terminal costs for the main ANSP at charging zone level

The lower than planned terminal costs in real terms for HungaroControl (-3.1%, or -1.0 M€2017) result from:
- lower staff costs (-3.9%), due to “decrease in headcount (mainly in non-ATCO business functions), restructuring of ATCO wage system (more traffic dependent), savings in payroll taxes due to the reduction in the contribution base;”
- lower other operating costs (-4.8%), due to “savings in services used, better customer solvency than planned (less bad debt provision);”
- lower depreciation (-1.8%), due to “assets placed in service later than planned, revision of some assets’ useful life;”
- higher cost of capital (+10.8%), mainly due to increase in net current assets (+417.8% in 2021), “the main driver of growth is a technical issue, namely the different handling of the adjustment of RP2 adjustments”.

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 469.82
Inflation adjustment 2.83
Cost exempt from cost-sharing -1.93
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 -6.26
Application of lower unit rate 0.00
Total adjustments -5.37
AUCU 464.46
AUCU vs. DUC -1.1%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments -127.0 -1.93
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 -127.0 -1.93

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 for Hungary terminal charging zone (164,802.02HUF or 464.71€) is -1.1% lower than the nominal DUC (166,613.33HUF or 469.82€) which includes DUC initially charged: 99,533.85HUF (or 280.52€); and to be charged: 67,079.48HUF (or 189.31€). The difference between these two figures (-1,811.31HUF/SU or -5.12€/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+1,011.73HUF/SU or +2.83€/SU);
- the deduction of the other revenues (-2,132.88HUF/SU or -6.01€/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-690.15HUF/SU or -1.93€/SU).

The share of regulatory result in the terminal AUCU is 7.3%.

Regulatory result (RR)

HungaroControl net gain on terminal activity in the Hungary charging zone in the combined year 2020-2021
HungaroControl’s net gain amounts to +0.9 M€, arising from the cost sharing mechanism.

HungaroControl overall regulatory results (RR) for the terminal activity
Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+0.9 M€) and the actual RoE (+1.4 M€) amounts to +2.3 M€ (7.4% of the terminal revenues). The resulting ex-post rate of return on equity is 8.3%, which is higher than the 5.1% planned in the PP.