Cost-efficiency - Netherlands

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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 142 NA NA NA
Determined costs 143 75 78 80
Difference costs -2 NA NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.5% 1.6% 1.6%
Determined inflation index NA 108.6 110.3 112.1
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 was -1.8% (or -5.43 €2017) lower than the planned DUC. This results from the combination of slightly lower than planned TNSUs
(-0.1%) and lower than planned terminal costs in real terms (-1.9%, or -2.5 M€2017).

Terminal service units

The difference between actual and planned TNSUs (-0.1%) falls within the ±2% dead band. Hence the resulting loss is borne by the ANSPs.

Terminal costs by entity

Actual real terminal costs for 2020-2021 are -1.9% (-2.5 M€2017) lower than planned. This result is driven by the main ANSP, LVNL (-1.9%, or -2.4 M€2017), while the MET service provider costs are -2.4% (or -0.1 M€2017) lower than planned.

Terminal costs for the main ANSP at charging zone level

The lower than planned terminal costs in real terms for LVNL (-1.9%, or -2.4 M€2017) in 2020-2021 result from:
- slightly higher staff costs (+0.7%);
- lower other operating costs (-9.6%) as a result of cost-containment measures;
- slightly lower depreciation (-1.4%); and,
- lower cost of capital (-12.5%) reflecting lower than planned asset base and lower than planned average interest on debts.

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

AUCU components (€/SU) – 2020-2021
Components of the AUCU in 2020-2021 €/SU
DUC 315.39
Inflation adjustment 1.96
Cost exempt from cost-sharing -0.29
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) 0.01
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -15.57
Application of lower unit rate 0.00
Total adjustments -13.89
AUCU 301.50
AUCU vs. DUC -4.4%
Cost exempt from cost sharing by item - 2020-2021 €'000 €/SU
New and existing investments -132.6 -0.29
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 -132.6 -0.29

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (301.50€) is -4.4% lower than the nominal DUC (315.39€) which includes DUC initially charged: 207.47€; and to be charged: 107.93€. The difference between these two figures (-13.89€/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+1.96€/SU);
- the impact of adjustments resulting from the costs exempt from cost-sharing mechanism (-0.29€/SU); and,
- the deduction of the other revenues (-15.57€/SU).

The share of regulatory result in the AUCU (before the deduction of other revenues) is 1.8%.

Regulatory result (RR)

LVNL net gain on activity in the Netherlands terminal charging zone in the combined year 2020-2021
LVNL generated a net gain of +2.4 M€, resulting from a gain of +2.5 M€ arising from the cost sharing mechanism and a loss of -0.09 M€ arising from the traffic risk sharing mechanism.
LVNL overall regulatory results (RR) for the terminal activity
Ex-post, the overall RR is equal to the net gain from the terminal activity mentioned above (+2.4 M€) and corresponds to 1.7% of the terminal revenues.
The RoE cannot be computed for LVNL, as its assets are entirely financed through debt.