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    Cost-efficiency - Switzerland

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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 180 88 NA NA
    Determined costs 188 95 94 95
    Difference costs -8 -6 NA NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 0.3% 0.8% 0.9%
    Determined inflation index NA 101.7 102.5 103.4
    Actual inflation rate NA 2.7% NA NA
    Actual inflation index NA 104.6 NA NA
    Difference inflation index (p.p.) NA +2.9 NA NA
    Focus on unit cost

    AUC vs. DUC

    In 2022, the terminal AUC was -2.1% (or -8.91 CHF2017, -8.02 €2017) lower than the planned DUC. This results from the combination of significantly lower than planned terminal costs in real terms (-8.6%, or -8.9 MCHF2017, -8.0 M€2017) and significantly lower than planned TNSUs (-6.6%). It should be noted that actual inflation index in 2022 was +2.9 p.p. higher than planned.

    Terminal service units

    The difference between actual and planned TNSUs (-6.6%) 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 (Skyguide) bearing a loss of -2.9 M€2017.

    Terminal costs by entity

    Actual real terminal costs are -8.6% (-8.0 M€2017) lower than planned. This is the result of lower costs for the main ANSP, Skyguide (-8.1%, or -7.2 M€2017) and the MET service provider (-20.2%, or -0.9 M€2017).

    Terminal costs for the main ANSP at charging zone level

    Actual terminal costs in real terms are lower than planned for Skyguide in 2022 (-8.1%, or -7.2 M€2017). However, the differences by nature of costs are distorted by the presentation of the additional costs caused by the change in the capitalisation rule in 2022 (+7.4 M€2017). Indeed, in order for these amounts not to be billed to airspace users, they have also been reported as negative exceptional items in the determined costs, but not in the actual costs (-100% of negative exceptional costs, or +7.4 M€2017).
    - the significant difference in staff costs (which is overall of -14.7 M€2017 or -26.4%), can be mainly explained by the evolution of the FTEs and salary assumptions, but it is also due to a reimbursement from the pension fund, although partially offset by the provision for ATCO retirement age transition costs.

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

    AUCU components (€/SU) – 2022
    Components of the AUCU in 2022 €/SU
    DUC 425.94
    Inflation adjustment 9.99
    Cost exempt from cost-sharing -5.70
    Traffic risk sharing adjustment 14.05
    Traffic adj. (costs not TRS) 1.53
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues 0.00
    Application of lower unit rate -15.16
    Total adjustments 4.71
    AUCU 430.65
    AUCU vs. DUC + 1.1%
    Cost exempt from cost sharing by item - 2022 €'000 €/SU
    New and existing investments -1,307.7 -5.70
    Competent authorities and qualified entities costs 0.0 0.00
    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 -1,307.7 -5.70
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (432.77 CHF or 430.65 €) is +1.1% higher than the nominal DUC (428.04 CHF or 425.94 €). The difference between these two figures (+4.73 CHF/SU or +4.71 €/SU) is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+10.04 CHF/SU or +9.99 €/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-5.73 CHF/SU or -5.70 €/SU);
    - the addition of the traffic risk sharing adjustments (+14.12 CHF/SU or +14.05 €/SU);
    - the addition of the traffic adjustment (+1.54 CHF/SU or +1.53 €/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 (-15.23 CHF/SU or -15.16 €/SU).
    The share of the regulatory result in the AUCU (before the deduction of other revenues) is 7.6%.

    Regulatory result (RR)

    Focus on regulatory result

    Skyguide net gain on activity in the Switzerland terminal charging zone in the year 2022

    Skyguide reported a net gain of +3.6 MCHF, as a combination of a gain of +7.0 MCHF arising from the cost sharing mechanism, with a loss of -3.4 MCHF arising from the traffic risk sharing mechanism.

    Skyguide 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 (+3.6 MCHF) and the actual RoE (+3.0 MCHF) amounts to +6.6 MCHF (6.7% of the terminal revenues). The resulting ex-post rate of return on equity is 14.6%, which is higher than the 12.9% planned in the PP. See also Note 1 above.

    Note 1: Ex-post RR does not take into account the application of the lower unit rate as per Art. 29.6 in 2022. This application generated losses of -3.5 MCHF for entities providing services in the terminal charging zone (-0.8 MCHF for skyguide and -2.7 MCHF for MET SP).

     
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