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 48 NA
Determined costs 61 35 35 35
Difference costs -9 4 13 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% 10.9% NA
Actual inflation index NA 127.6 141.5 NA
Difference inflation index (p.p.) NA +14.2 +25.3 NA

AUC vs. DUC

In 2023, the terminal AUC was -6.2% (or -63.07 PLN2017, -14.82 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TNSUs (+23.7%) and significantly higher than planned terminal costs in real terms (+16.0%, or +21.2 MPLN2017, +5.0 M€2017). It should be noted that actual inflation index in 2023 was +25.3 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (+23.7%) 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 .

Terminal costs by entity

NA

Terminal costs for the main ANSP at charging zone level

Significantly higher than planned terminal costs in real terms for PANSA in 2023 (+22.6%, or +5.6 M€2017) result from:
- Significantly higher staff costs (+30.0%) due to changes in remuneration regulations byt also dynamic recovery of traffic at regional airports leading to additional payments for overtime.
- Lower other operating costs in real terms (-3.5%) but higher in nominal tersm (+17.4%);
- Significantly higher depreciation (+21.6%) due to higher traffic in charging zone leading to increase in cost allocation related to the usage of assets necessary for providing ANS;
- Significantly higher cost of capital (+34.2%) due to a higher asset base (+16.7%) from changes in traffic structure and an increased WACC rate driven by rising annual interest rates and WIBOR reference rates.

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 251.83
Inflation adjustment 36.02
Cost exempt from cost-sharing 7.69
Traffic risk sharing adjustment -31.81
Traffic adj. (costs not TRS) -9.09
Finantial incentives 3.23
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -5.72
Application of lower unit rate 0.00
Total adjustments 0.32
AUCU 252.15
AUCU vs. DUC + 0.1%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments 1,171.9 7.21
Competent authorities and qualified entities costs 27.1 0.17
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 51.0 0.31
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 1,249.9 7.69

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (1 144.26 PLN or 252.15 €) is +0.1% higher than the nominal DUC (1 142.80 PLN or 251.83 €). The difference between these two figures (+1.46 PLN/SU or +0.32 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+163.46 PLN/SU or +36.02 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+34.91 PLN/SU or +7.69 €/SU);
- the deduction of the traffic risk sharing adjustments (-144.35 PLN/SU or -31.81 €/SU);
- the deduction of the traffic adjustment (-41.25 PLN/SU or -9.09 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (+14.65 PLN/SU or +3.23 €/SU); and
- the deduction of the other revenues (-25.96 PLN/SU or -5.72 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is -3.8%.

Regulatory result (RR)

PANSA net gain on activity in the Poland terminal charging zone 2 in the year 2023

PANSA reported a net loss of -18.1 MPLN, as a combination of a loss of -25.7 MPLN arising from the cost sharing mechanism, with a gain of +5.2 MPLN arising from the traffic risk sharing mechanism and a gain of +2.4 MPLN relating to financial incentives.

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

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-18.1 MPLN) and the actual RoE (+6.9 MPLN) amounts to -11.2 MPLN (-7.3% of the terminal revenues).