Cost-efficiency - Italy

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Terminal charging zone - Italy Zone 1

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 60 NA NA NA
Determined costs 62 33 34 34
Difference costs −1 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.8% 1.2% 1.2%
Determined inflation index NA 105.3 106.6 107.9
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

In the combined year 2020-2021, the AUC for Italy TCZ1 was lower than the planned DUC (-3.9%, or -15.78€). This results from the combination of higher than planned TNSUs (+2.2%) and lower than planned terminal costs in real terms (-1.7%, or -1.1 M€2017).

Terminal service units

The difference between actual and planned TNSUs (+2.2%) falls outside of the ±2% dead band. Hence, the resulting gain is shared between the ANSP and airspace users, with the ANSP retaining an amount of 1.2 M€.

Terminal costs by entity

Actual real terminal costs for 2020-2021 in the Italian TCZ1 are -1.7% (-1.1 M€2017) lower than planned. This mainly reflects lower than planned costs for the main ANSP - ENAV (-1.8%, or -1.1 M€2017), while the costs for the NSA were in line with the plan.

Terminal costs for the main ANSP at charging zone level

The lower than planed terminal costs in real terms for ENAV in 2020-2021 reflects a combination of:
- slightly lower staff costs (-0.1%);
- lower other operating costs (-2.7%), which are understood to reflect costs savings for utilities and communications, external services and maintenance of non-operational equipment;
- lower depreciation costs (-1.4%); and,
- lower cost of capital (-6.0%), which are understood to reflect lower than planned asset base 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 412.94
Inflation adjustment 0.32
Cost exempt from cost-sharing −5.38
Traffic risk sharing adjustment −0.61
Traffic adj. (costs not TRS) −0.70
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 −6.37
AUCU 406.56
AUCU vs. DUC −1.5%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments −808.0 −5.29
Competent authorities and qualified entities costs −32.5 −0.21
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 18.8 0.12
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing −821.7 −5.38

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in combined year 2020-2021 (410.81€) in Italy TCZ1 is -0.5% lower than the nominal DUC (412.94€) which includes DUC initially charged: 169.88€; and to be charged: 243.05€. The difference between these two figures is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+0.32€/SU), to be charged to the airspace users in future years.
- the deduction of the traffic risk sharing adjustments (-0.61€/SU) and the traffic adjustment (-0.70€/SU) for the costs not subject to traffic risk sharing to be reimbursed in future years;
- and the impact of adjustments resulted from the costs exempted from cost-sharing mechanism (-1.13€/SU).

The share of regulatory result in the AUCU is 16.6% in TCZ1.

Regulatory result (RR)

ENAV net gain on terminal activity in the Italian TCZ1 in the combined year 2020-2021
ENAV’s net gain amounts to +2.1 M€, as a combination of a gain of +0.9 M€ arising from the cost sharing mechanism and a gain of +1.2 M€ arising from the traffic risk sharing mechanism.
ENAV overall regulatory results (RR) for terminal activity
Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+2.1 M€) and the actual RoE (+8.3 M€) amounts to +10.4 M€ (16.7% of the terminal revenues in TCZ1). The resulting ex-post rate of return on equity is 7.4%, which is higher than the 5.8% planned in the PP.