Cost-efficiency - Slovenia
PRB monitoring
▪ The en route 2020/2021 actual unit cost of Slovenia was 93.23 €2017, -8.1% lower than the determined unit cost (101.44 €2017). Slovenia does not have a terminal charging zone.
▪ The en route 2021 actual service units (370K) were +9.1% higher than determined (339K).
▪ In 2021, Slovenia decreased total costs by -2.1 M€2017 (-6.8%) compared to determined, mainly driven by decreases in staff costs (-1.4 M€2017, or -7.2%) due to negotiations with the social partners, and other operating costs (-0.7 M€2017, or -12%) due to the optimisation and postponement of contracts and maintenance of several assets.
▪ Slovenia Control spent 4.6 M€2017 in 2021 related to costs of investments, in line with determined.
▪ The en route actual unit cost incurred by users in 2020/2021 was 96.06€.
En route charging zone
| Actual and determined data |
| Total costs - nominal (M€) |
2020-2021 |
2022 |
2023 |
2024 |
| Actual costs |
61 |
NA |
NA |
NA |
| Determined costs |
63 |
35 |
36 |
37 |
| Difference costs |
-2 |
NA |
NA |
NA |
| Inflation assumptions |
2020-2021 |
2022 |
2023 |
2024 |
| Determined inflation rate |
NA |
1.5% |
1.6% |
1.8% |
| Determined inflation index |
NA |
106 |
107.8 |
109.7 |
| 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 en route AUC (93.23 €2017) was lower by -8.1% (or -8.21 €2017) compared with the DUC (101.44 €2017). This was the combined effect of the lower than planned en route costs in real terms (-3.4%, -2.1 M€2017) and higher total TSU (+5.1%).
En route service units
The actual TSUs exceed the planned level (+5.1%) and fall between the ±2% dead band and +10% threshold. Hence the resulting gain will be shared between the airspace users and the ANSPs.
En route costs by entity
Actual en route costs are -3.4% lower than planned (-2.1 M€2017) which is mainly driven by the lower costs for Slovenia Control (-3.4% or -1.8 M€2017). Actual 2020-2021 costs for METSP are higher by +3.1% (or +0.1 M€2017), while NSA/EUROCONTROL costs are lower by -6.5% (or -0.3 M€2017).
En route costs for the main ANSP at charging zone level
The lower than planned en route costs in real terms for Slovenia Control (-3.4%, or -1.8 M€2017) result from:
- lower than planned staff costs, by -3.7% (or -1.3 M€2017), due to lower salaries that remained in place in Q4 2021, to the same extent as for the Q1-Q3;
- lower other operating costs by -6.5% (or -0.5 M€2017), due to optimized/postponed contracts (equipment & telecommunication rentals);
- higher depreciation costs by +1.3% (or +0.1 M€2017); and,
- lower cost of capital by -2.1% (or -0.1 M€2017).
Actual unit cost incurred by the users (AUCU) (PI#1)
| AUCU components (€/SU) – 2020-2021 |
| Components of the AUCU in 2020-2021 |
€/SU |
| DUC |
104.56 |
| Inflation adjustment |
0.45 |
| Cost exempt from cost-sharing |
-0.52 |
| Traffic risk sharing adjustment |
-1.90 |
| Traffic adj. (costs not TRS) |
-0.65 |
| Finantial incentives |
0.00 |
| Modulation of charges |
0.00 |
| Cross-financing |
0.00 |
| Other revenues |
-5.98 |
| Application of lower unit rate |
0.00 |
| Total adjustments |
-8.59 |
| AUCU |
95.97 |
| AUCU vs. DUC |
-8.2% |
| Cost exempt from cost sharing by item - 2020-2021 |
€'000 |
€/SU |
| New and existing investments |
0.0 |
0.00 |
| Competent authorities and qualified entities costs |
-147.4 |
-0.23 |
| Eurocontrol costs |
-180.3 |
-0.28 |
| 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 |
-327.6 |
-0.52 |
The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (96.06€) is -8.1% lower than the nominal DUC (104.56€), which includes DUC initially charged: 57.06€; and to be charged: 47.50€. The difference between these two figures (-8.50€/SU) is due to:
- the positive inflation adjustment (+0.45€/SU) resulting from higher than planned inflation;
- the deduction of the adjustment for costs exempt from cost-sharing (-0.42€/SU), to be reimbursed to airspace users in future years;
- the deduction of traffic risk sharing adjustment of -1.90€/SU to be reimbursed to the airspace users in future years;
- the deduction of traffic adjustment (-0.65€/SU), for the costs not subject to traffic risk sharing to be reimbursed in future years; and,
- the deduction of the other revenues (-5.98€/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 8.1%.
Slovenia Control net gain on activity in the en route charging zone in the combined year 2020-2021
Slovenia Control’s net gain amounts to +3.6 M€, mainly due to the gains of +2.0 M€ from the cost sharing mechanism and of +1.6 M€ from the traffic risk sharing mechanism.
Slovenia Control 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 (+3.6 M€) and the actual RoE (+1.7 M€) amounts to +5.3 M€ (9.3% of the en route revenues). The resulting ex-post rate of return on equity is 32.3% which is higher than the 10.4% planned in the PP.