Cost-efficiency - Poland

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Terminal charging zone - Poland Others

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 52 39 NA NA
Determined costs 61 35 35 35
Difference costs -9 4 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 -10.6% (or -115.1 PLN2017, -27.05 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TNSUs (+13.7%) and higher than planned terminal costs in real terms (+1.7%, or +2.3 MPLN2017, +0.5 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 (+13.7%) falls outside the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional terminal revenues is therefore shared between the ANSP and the airspace users, with the ANSP (PANSA) retaining an amount of +1.0 M€2017.

Terminal costs by entity

Actual real terminal costs are +1.7% (+0.5 M€2017) higher than planned. This is the result of higher costs for the main ANSP, PANSA (+3.7%, or +0.9 M€2017) and lower costs for the other ANSP (MODLIN, ANSP-BYDGOSZCZ and ANSP-Warmia-Mazury, -2.7%, or -0.01 M€2017), the NSA (-6.6%, or -0.1 M€2017) and the MET service providers (-7.1%, or -0.3 M€2017).

Terminal costs for the main ANSP at charging zone level

Higher than planned terminal costs in real terms for PANSA in 2022 (+3.7%, or +0.9 M€2017) result from:
- Significantly higher staff costs (+6.4%), resulting from 1) the changes in the remuneration scheme implemented in 2022 that affect also regional TWR 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 (-25.5%), due to 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.).
- Significantly higher depreciation (+24.3%), due to the higher traffic and the increase in the costs allocated to TNC-CZ2.
- Significantly higher cost of capital (+25.7%), due to the higher WACC and higher asset base.

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 257.05
Inflation adjustment 23.20
Cost exempt from cost-sharing 7.11
Traffic risk sharing adjustment -17.42
Traffic adj. (costs not TRS) -5.41
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -6.11
Application of lower unit rate 0.00
Total adjustments 1.37
AUCU 258.42
AUCU vs. DUC + 0.5%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments 1,018.4 7.23
Competent authorities and qualified entities costs -64.9 -0.46
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 49.0 0.35
Changes in law 0.2 0.00
Total cost exempt from cost risk sharing 1,002.6 7.11

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (1 208.74 PLN or 258.28 €) is +0.5% higher than the nominal DUC (1 202.96 PLN or 257.05 €). The difference between these two figures (+5.79 PLN/SU or +1.24 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+108.56 PLN/SU or +23.20 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+32.68 PLN/SU or +6.98 €/SU);
- the deduction of the traffic risk sharing adjustments (-81.53 PLN/SU or -17.42 €/SU);
- the deduction of the traffic adjustment (-25.32 PLN/SU or -5.41 €/SU) for the costs not subject to traffic risk sharings; and
- the deduction of the other revenues (-28.61 PLN/SU or -6.11 €/SU).
The share of regulatory result in the AUCU (befored the deduction of other revenues) is 8.8%.

Regulatory result (RR)

PANSA net gain on activity in the Poland terminal charging zone 2 in the year 2022

PANSA reported a net gain of +6.7 MPLN, as a combination of a gain of +1.4 MPLN arising from the cost sharing mechanism, with a gain of +5.3 MPLN arising from the traffic risk sharing mechanism.

PANSA overall regulatory results (RR) for the terminal charging zone 2 activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+6.7 MPLN) and the actual RoE (+6.8 MPLN) amounts to +13.6 MPLN (9.4% of the terminal revenues). The resulting ex-post rate of return on equity is 9.6%, which is higher than the 4.9% planned in the PP.