Cost-efficiency - Belgium

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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 67 37 40 NA
Determined costs 70 38 42 44
Difference costs −2 −1 −3 NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 7.8% 4.7% 2.1%
Determined inflation index NA 115.6 123.9 126.5
Actual inflation rate NA 10.3% 2.3% NA
Actual inflation index NA 118.3 121 NA
Difference inflation index (p.p.) NA +2.7 -2.8 NA

AUC vs. DUC

In 2023, the terminal AUC was -2.1% (or -5.02 €2017) lower than the planned DUC. This results from the combination of lower than planned terminal costs in real terms (-4.4%, or -1.5 M€2017) and lower than planned TNSUs (-2.3%).

Terminal service units

The difference between actual and planned TNSUs (-2.3%) 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.

Terminal costs by entity

Actual real terminal costs are -4.4% (-1.5 M€2017) lower than planned. This is the result of lower costs for the main ANSP, skeyes (-4.5%, or -1.5 M€2017). Costs for the NSA are higher (+2.8%, or +0.02 M€2017) than planned.

Terminal costs for the main ANSP at charging zone level

Lower than planned terminal costs in real terms for skeyes in 2023 (-4.5%, or -1.5 M€2017) result from:
- Slightly lower staff costs (-1.4% or -4% in nominal terms). No additional driver information has been provided apart of the lower inflation than expected.
- Significantly lower other operating costs (-17.9%), primarily due to lower utility costs. Energy costs, which had risen sharply in 2022 due to the economic crisis and the war in Ukraine, decreased more quickly than expected in 2023;
- Significantly higher depreciation (+6.7%) “mainly due to additional depreciation costs after decommissioning of equipment (a.o. multilateration EBBR airport radar), which was not foreseen in the performance plan”; and
- Significantly lower cost of capital (-33.4%) mainly due to a lower fixed asset base.

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 289.88
Inflation adjustment −6.06
Cost exempt from cost-sharing 0.83
Traffic risk sharing adjustment 0.61
Traffic adj. (costs not TRS) 0.52
Finantial incentives 0.00
Modulation of charges 7.20
Cross-financing 0.00
Other revenues −77.99
Application of lower unit rate 0.00
Total adjustments −74.89
AUCU 214.99
AUCU vs. DUC −25.8%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments 98.8 0.69
Competent authorities and qualified entities costs 19.2 0.13
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 118.1 0.83

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (214.99 €) is -25.8% lower than the nominal DUC (289.88 €). The difference between these two figures (-74.89 €/SU) is due to:
- the negative inflation adjustment resulting from lower than planned inflation (-6.06 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+0.83 €/SU);
- the addition of the traffic risk sharing adjustments (+0.61 €/SU);
- the addition of the traffic adjustment (+0.52 €/SU) for the costs not subject to traffic risk sharing;
- the modulation of charges (+7.20 €/SU); and
- the deduction of the other revenues (-77.99 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 4.2%.

Regulatory result (RR)

skeyes net gain on activity in the Belgium terminal charging zone in the year 2023

skeyes reported a net gain of +1.1 M€, as a combination of a gain of +1.9 M€ arising from the cost sharing mechanism, with a loss of -0.8 M€ arising from the traffic risk sharing mechanism.

skeyes overall regulatory results (RR) for the Belgium terminal charging zone activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+1.1 M€) and the actual RoE (+0.6 M€) amounts to +1.7 M€ (4.3% of the terminal revenues). The resulting ex-post rate of return on equity is 10.7%, which is higher than the 3.8% planned in the PP.