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  1. Cost-efficiency
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  • Cost-efficiency
    • PRB monitoring
    • En route CZ
      • Unit cost
      • AUCU
      • Regulatory Result
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      • Unit cost
      • AUCU
      • Regulatory Result

Cost-efficiency - Greece

Download Report

PRB monitoring

▪ The en route 2023 actual unit cost of Greece was 21.25 €2017, -21% lower than the determined unit cost (26.96 €2017). The terminal 2023 actual unit cost was 148.20 €2017, -19% lower than the determined unit cost (182.18 €2017).

▪ The en route 2023 actual service units (7.3M) were +11% higher than the determined service units (6.6M).

▪ The en route 2023 actual total costs were -26 M€2017 lower (-15%) than determined (not considering the determined exceptional items relating to 2021), marking an underspend across all cost categories. The largest reduction was in staff costs (-16 M€2017, or -12%), followed by significantly lower depreciation costs (-6.3 M€2017, or -73%), other operating costs (-2.4 M€2017, or -7.6%), and cost of capital (-2.2 M€2017, or -60%). The NSA did not provide sufficient explanations for these results. The PRB recommends that the NSA submit an updated Additional Information to the Reporting Tables, providing more comprehensive explanations for the differences between the actual and determined costs in each cost category. The PRB highlights that the actual number of ACC ATCOs in OPS FTEs for HASP were -31% below plan.

▪ HASP spent 1.4 M€2017 in 2023 related to costs of investments for both en route and terminal charging zones, -87% less than determined (8.9 M€2017), due to postponed investment projects. The NSA did not provide explanations for the non-implementation of the three new major investments that were scheduled for 2023. As for the previous monitoring year, the discrepancies regarding costs of investments were significant.

▪ The en route actual unit cost incurred by users in 2023 was 26.91€ (-6.3% below the 2023 DUC), while the terminal actual unit cost incurred by users was 148.21€ (-24% below the 2023 DUC). The difference between the AUCU and the DUC in terminal charging zone is primarily attributed to the loss of revenue relating to the application of a lower unit rate, which amounted to -5.4 M€.

▪ The en route regulatory result for HASP amounted to +21 M€, or 12% of the 2023 revenue. This may indicate that the airspace users are charged for costs which have not materialised in 2023.

▪ The PRB will take into consideration the implementation of the RP3 performance plans when assessing the RP4 cost-efficiency targets and urges Greece to take immediate, adequate, and proportionate action to implement the relevant ATCO and investment plans committed to in the RP3 performance plan.

En route charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 257 165 177 NA
Determined costs 277 172 189 204
Difference costs -20 -8 -12 NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 4.5% 1.3% 1.6%
Determined inflation index NA 106.5 107.9 109.7
Actual inflation rate NA 9.3% 4.2% NA
Actual inflation index NA 111.4 116.1 NA
Difference inflation index (p.p.) NA +4.9 +8.2 NA
Focus on unit cost

AUC vs. DUC

In 2023, the en route AUC was -21.2% (or -5.71 €2017) lower than the planned DUC. This results from the combination of significantly lower than planned en route costs in real terms (-12.5%, or -22.2 M€2017) and significantly higher than planned TSUs (+11.0%). It should be noted that actual inflation index in 2023 was +8.2 p.p. higher than planned.

En route service units

The difference between actual and planned TSUs (+11.0%) 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 .

En route costs by entity

Actual real en route costs are -12.5% (-22.2 M€2017) lower than planned. This is the result of lower costs for the main ANSP, HASP (-15.4%, or -22.8 M€2017) and higher costs for the NSA/ EUROCONTROL (+1.2%, or +0.2 M€2017), the MET service provider (+4.5%, or +0.4 M€2017).

En route costs for the main ANSP at charging zone level

Significantly lower than planned en route costs in real terms for HASP in 2023 (-15.4%, or -22.8 M€2017) result from:
- Significantly lower staff (-13.0% in real terms) and other operating costs (-12.7%). According to information provided by Greece “The operating costs reflect payments of HASP that were incurred in 2023 on a cash basis”.
- Significantly lower depreciation (-84.2%), due to the delays in the implementation of the investment projects.
- Significantly lower cost of capital (-94.7%), due to lower than expected level of fixed assets resulted from the delays in the implementation of the investment projects.
- No actual exceptional costs reported (-100% decrease), while determined exceptional costs present the negative amount of “the reimbursement of the difference between determined and actual costs of year 2021”. Without the effect of artificial negative exceptional costs (in determined costs), the difference between actual and determined costs in 2023 would be -17.7%, or -27.0 M€2017.
- Significantly higher deduction for VFR exempted flights (+8.5%).

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 28.73
Inflation adjustment 1.64
Cost exempt from cost-sharing -1.12
Traffic risk sharing adjustment -1.45
Traffic adj. (costs not TRS) -0.45
Finantial incentives -0.44
Modulation of charges 0.00
Cross-financing 0.00
Other revenues 0.00
Application of lower unit rate 0.00
Total adjustments -1.81
AUCU 26.92
AUCU vs. DUC -6.3%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments -8,545.5 -1.17
Competent authorities and qualified entities costs -196.2 -0.03
Eurocontrol costs 570.7 0.08
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 -8,171.1 -1.12
Focus on AUCU

The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (26.91 €) is -6.3% lower than the nominal DUC (28.73 €). The difference between these two figures (-1.82 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+1.64 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-1.13 €/SU);
- the deduction of the traffic risk sharing adjustments (-1.45 €/SU);
- the deduction of the traffic adjustment (-0.45 €/SU) for the costs not subject to traffic risk sharing; and
- financial incentives (-0.44 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 10.3%.

Regulatory result (RR)

Focus on regulatory result

HASP net gain on activity in the Greece en route charging zone in the year 2023

HASP reported a net gain of +20.5 M€, as a combination of a gain of +16.7 M€ arising from the cost sharing mechanism, with a gain of +7.0 M€ arising from the traffic risk sharing mechanism and a loss of -3.2 M€ relating to financial incentives.

HASP 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 (+20.5 M€) and the actual RoE (+0.1 M€) amounts to +20.7 M€ (12.4% of the en route revenues).

Note1: Ex-post RoE cannot be correctly calculated due to a very low total asset base, due to:1) the exclusion of net current assets from the calculation of the total asset base starting from 2021, 2) a very low net book value of fixed assets (as these are nearly fully depreciated).

 
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