Cost-efficiency - Greece

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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 30 21 NA NA
Determined costs 35 21 25 29
Difference costs -4 0 NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 4.5% 1.3% 1.6%
Determined inflation index NA 106.5 107.9 109.7
Actual inflation rate NA 9.3% NA NA
Actual inflation index NA 111.4 NA NA
Difference inflation index (p.p.) NA +4.9 NA NA

AUC vs. DUC

In 2022, the terminal AUC was -3.4% (or -5.34 €2017) lower than the planned DUC. This results from the combination of lower than planned terminal costs in real terms (-4.8%, or -0.9 M€2017) and lower than planned TNSUs (-1.4%). It should be noted that actual inflation index in 2022 was +4.9 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-1.4%) falls inside the ±2% dead band. Hence loss of terminal revenues is borne by the main ANSP (HASP) .

Terminal costs by entity

Actual real terminal costs are -4.8% (-0.9 M€2017) lower than planned. This is the result of lower costs for the main ANSP, HASP (-6.6%, or -1.2 M€2017) and the MET service provider (-62.8%, or -0.3 M€2017) and higher costs for the NSA (+510.0%, or +0.6 M€2017).

Terminal costs for the main ANSP at charging zone level

Lower than planned terminal costs in real terms for HASP in 2022 (-6.6%, or -1.2 M€2017) result from:
- Slightly lower staff costs (-0.6%), mainly due to the inflation index impact (+4.9 p.p.) since in nominal terms costs are higher than planned, by +4.0%.
- Significantly lower other operating costs (-15.3%), partially due to the inflation index impact (+4.9 p.p.). No explanation of drivers for the difference between actual and determined other operating costs was provided by Greece.
- Significantly lower depreciation (-88.3%) and cost of capital (-94.2%), due to the delay in the projects implementation.
- Significantly higher deduction for VFR exempted flights (+19.7%).

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 165.55
Inflation adjustment 7.47
Cost exempt from cost-sharing 1.68
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) 0.07
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues 0.00
Application of lower unit rate -30.34
Total adjustments -21.11
AUCU 144.44
AUCU vs. DUC -12.8%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments -399.5 -3.24
Competent authorities and qualified entities costs 606.9 4.92
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 207.4 1.68

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (144.44 €) is -12.8% lower than the nominal DUC (165.55 €). The difference between these two figures (-21.11 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+7.47 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+1.68 €/SU);
- the addition of the traffic adjustment (+0.07 €/SU) for the costs not subject to traffic risk sharing; and,
- application of a lower unit rate as foreseen in Art. 29(6) in year 2022 (-30.34 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 5.6%.

Regulatory result (RR)

HASP net gain on activity in the Greece terminal charging zone in the year 2022

HASP reported a net gain of +0.7 M€, as a combination of a gain of +0.93 M€ arising from the cost sharing mechanism, with a loss of -0.28 M€ arising from the traffic risk sharing mechanism.

HASP 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 (+0.7 M€) and the actual RoE (+0.006 M€) amounts to +0.7 M€ (3.3% of the terminal revenues).

Note 1: Ex-post RR does not take into account the application of the lower unit rate as per Art. 29.6 (loss in revenues corresponds to -3.7 M€ for 2022).
Note 2: Ex-post RoE cannot be correctly calculated due to a very low total asset base, due to: 1) the exclusion of net current assets from the calculation of the total asset base starting from 2021, 2) a very low net book value of fixed assets (as these are nearly fully depreciated).