Cost-efficiency - Poland

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Terminal charging zone - Poland EPWA

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 16 12 NA NA
Determined costs 19 11 12 12
Difference costs -3 1 NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 2.5% 2.5% 2.5%
Determined inflation index NA 113.4 116.2 119.1
Actual inflation rate NA 13.2% NA NA
Actual inflation index NA 127.6 NA NA
Difference inflation index (p.p.) NA +14.2 NA NA

AUC vs. DUC

In 2022, the terminal AUC was +0.6% (or +2.82 PLN2017, +0.66 €2017) higher than the planned DUC. This results from the combination of lower than planned TNSUs (-4.6%) and lower than planned terminal costs in real terms (-4.0%, or -1.8 MPLN2017, -0.4 M€2017). It should be noted that actual inflation index in 2022 was +14.2 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-4.6%) falls outside the ±2% dead band, but does not exceed the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting loss of terminal revenues is therefore shared between the ANSP and the airspace users, with the ANSP (PANSA) bearing a loss of -0.2 M€2017.

Terminal costs by entity

Actual real terminal costs are -4.0% (-0.4 M€2017) lower than planned. This is the result of lower costs for the main ANSP, PANSA (-4.7%, or -0.05 M€2017) and the MET service provider (-10.2%, or 0.05 M€2017) and higher costs for the NSA (+28.5%, or +0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Lower than planned terminal costs in real terms for PANSA in 2022 (-4.7%, or -0.5 M€2017) result from:
- Higher staff costs (+2.6%), resulting from 1) the changes in the remuneration scheme implemented in 2022 that affect also EPWA ATCOs remunerations, 2) additional costs that materialized in 2022 and represent the part of unspent budget of staff costs in 2021. This result is also impacted by higher actual inflation index (+14.2 p.p.).
- Significantly lower other operating costs (-37.1%), as a consequence of lower traffic and the review of PANSA plan resulting in one-off cost containment initiative and postponement of some activities. This result is also impacted by higher actual inflation index (+14.2 p.p.).
- Lower depreciation (-2.5%), due to the postponement of some investment projects.
- Higher cost of capital (+2.8%), resulting from higher WACC due to the higher interest rate in 2022.

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 119.54
Inflation adjustment 13.19
Cost exempt from cost-sharing 0.73
Traffic risk sharing adjustment 2.13
Traffic adj. (costs not TRS) 0.33
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -2.72
Application of lower unit rate 0.00
Total adjustments 13.66
AUCU 133.20
AUCU vs. DUC + 11.4%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments -15.8 -0.19
Competent authorities and qualified entities costs 65.4 0.78
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 11.5 0.14
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 61.2 0.73

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (623.36 PLN or 133.20 €) is +11.4% higher than the nominal DUC (559.45 PLN or 119.54 €). The difference between these two figures (+63.92 PLN/SU or +13.66 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+61.72 PLN/SU or +13.19 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+3.43 PLN/SU or +0.73 €/SU);
- the addition of the traffic risk sharing adjustments (+9.97 PLN/SU or +2.13 €/SU);
- the addition of the traffic adjustment (+1.54 PLN/SU or +0.33 €/SU) for the costs not subject to traffic risk sharing; and
- the deduction of the other revenues (-12.75 PLN/SU or -2.72 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 6.1%.

Regulatory result (RR)

PANSA net gain on activity in the Poland terminal charging zone 1 in the year 2022

PANSA reported a net gain of +1.2 MPLN, as a combination of a gain of +2.4 MPLN arising from the cost sharing mechanism, with a loss of -1.3 MPLN arising from the traffic risk sharing mechanism.

PANSA overall regulatory results (RR) for the terminal charging zone 1 activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+1.2 MPLN) and the actual RoE (+1.9 MPLN) amounts to +3.0 MPLN (6.1% of the terminal revenues). The resulting ex-post rate of return on equity is 7.8%, which is higher than the 4.9% planned in the PP.