Cost-efficiency - Spain

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En route charging zone - Spain Canarias

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 186 113 NA NA
Determined costs 188 98 100 102
Difference costs -2 15 NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.3% 1.5% 1.6%
Determined inflation index NA 104.9 106.5 108.2
Actual inflation rate NA 8.3% NA NA
Actual inflation index NA 114.4 NA NA
Difference inflation index (p.p.) NA +9.5 NA NA

AUC vs. DUC

In 2022, the en route AUC was -14.9% (or -9.99 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TSUs (+26.5%) and significantly higher than planned en route costs in real terms (+7.6%, or +7.2 M€2017). It should be noted that actual inflation index in 2022 was +9.5 p.p. higher than planned.

En route service units

The difference between the 2022 actual and planned TSUs (+26.5%) falls outside the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional en route revenues is therefore shared between the ANSP and the airspace users, with the ANSP (ENAIRE) retaining an amount of +2.8 M€2017.

En route costs by entity

The 2022 actual real en route costs are +7.6% (+7.2 M€2017) higher than planned. This is the result of higher than planned costs for ENAIRE (+6.4%, or +4.5 M€2017), the other ANSP (EA +18.4%, or +2.1 M€2017) and the NSA/EUROCONTROL (+10.2%, or +0.7 M€2017), while for the MET SP the costs are lower than planned (-1.5%, or -0.1 M€2017).

En route costs for the main ANSP at charging zone level

Significantly higher than planned en route costs in real terms for ENAIRE in 2022 (+6.4%, or +4.5 M€2017) result from: - Significantly higher than planned staff costs (+9.5%, or +5.0 M€2017), reported to be due to “unforeseeable new cost items not covered in the performance plan but required by law (Law 26/2022 of 19 December), which develops the figure of a Special Active Reserve , solving, among others, the problem of the forced retirement of ATCOs at age 65.” And the “actual increase of salaries for 2022 was +3.5%, following public employees’ salaries decisions adopted by Government, compared to 0%” in the PP. - Lower than planned other operating costs in real terms (-3.0%, or -0.2 M€2017) due to the inflation impact, but higher in nominal terms (+5.7%), reported to be mainly due to higher energy costs. - Higher than planned depreciation costs (+4.2%, or +0.4 M€2017), - Significantly lower than planned cost of capital (-22.0%, or -0.7 M€2017), as a combination of a lower asset base and lower WACC rate (4.4%) than planned (4.7%).

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 69.42
Inflation adjustment 3.83
Cost exempt from cost-sharing 6.94
Traffic risk sharing adjustment -9.08
Traffic adj. (costs not TRS) -3.67
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing -18.78
Other revenues -0.18
Application of lower unit rate 0.00
Total adjustments -20.94
AUCU 48.48
AUCU vs. DUC -30.2%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments 822.8 0.46
Competent authorities and qualified entities costs 170.6 0.10
Eurocontrol costs 620.7 0.35
Pension costs 0.0 0.00
Interest on loans 0.0 0.00
Changes in law 10,799.9 6.03
Total cost exempt from cost risk sharing 12,414.1 6.94

The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (48.44 €) is -30.2% lower than the nominal DUC (69.42 €). The difference between these two figures (-20.99 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+3.83 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+6.89 €/SU);
- the deduction of the traffic risk sharing adjustments (-9.08 €/SU);
- the deduction of the traffic adjustment (-3.67 €/SU) for the costs not subject to traffic risk sharing;
- the cross-financing (-18.78 €/SU); and
- the deduction of other revenues (-0.18 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 12.0%.

Regulatory result (RR)

ENAIRE net gain on activity in the Spain Canarias en route charging zone in the year 2022

ENAIRE reported a net gain of +8.4 M€, as a combination of a gain of +5.2 M€ arising from the cost sharing mechanism, with a gain of +3.2 M€ arising from the traffic risk sharing mechanism.

ENAIRE 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 (+8.4 M€) and the actual RoE (+2.3 M€) amounts to +10.7 M€ (11.6% of the en route revenues). The resulting ex-post rate of return on equity is 33.6%, which is higher than the 7.2% planned in the PP. It should be noted that an amount of +10.4 M€ is submitted as costs exempt from cost-sharing, reported to be mainly due to the unforeseen change in law and significantly impacting the staff costs.