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      • En route CZ - Spain Continental
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        • Unit cost
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        • Unit cost
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        • Regulatory Result

    Cost-efficiency - Spain

    Download Report

    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 186 113 112 NA
    Determined costs 188 98 100 102
    Difference costs -2 15 13 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% 3.4% NA
    Actual inflation index NA 114.4 118.2 NA
    Difference inflation index (p.p.) NA +9.5 +11.8 NA
    Focus on unit cost

    AUC vs. DUC

    In 2023, the en route AUC was -15.9% (or -9.36 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TSUs (+23.6%) and higher than planned en route costs in real terms (+4.0%, or +3.8 M€2017). It should be noted that actual inflation index in 2023 was +11.8 p.p. higher than planned.

    En route service units

    The difference between actual and planned TSUs (+23.6%) 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 ANSPs and the airspace users .

    En route costs by entity

    Actual real en route costs are +4.0% (+3.8 M€2017) higher than planned. This is the result of higher costs for the main ANSP, ENAIRE (+2.8%, or +2.0 M€2017), the other ANSP (EA), +7.4%, or +0.8 M€2017), the NSA/EUROCONTROL (+12.8%, or +0.9 M€2017) and the MET service provider (+1.3%, or +0.1 M€2017).

    En route costs for the main ANSP at charging zone level

    Higher than planned en route costs in real terms for ENAIRE in 2023 (+2.8%, or +2.0 M€2017) result from:
    - Slightly higher staff costs (+0.6%), which reflects a combination of increases driven by changes in national laws on Public Employees salary and on Social Security Scheme National Law as well introduction of Special Active Reserve (through Law 26/2022 of 19 December), which, among others, solves the problem of forced retirement of ATCOs at the age of 65.
    - Significantly higher other operating costs (+16.3%), primarily reflecting much higher than planned energy costs.
    - Significantly higher depreciation costs (+5.5%),
    - Significantly higher cost of capital (+7.0%), primarily reflecting the use of much higher average interest rate on debts to calculate WACC (3.3% vs 0.8% planned).

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

    AUCU components (€/SU) – 2023
    Components of the AUCU in 2023 €/SU
    DUC 61.86
    Inflation adjustment 4.23
    Cost exempt from cost-sharing 2.21
    Traffic risk sharing adjustment -7.20
    Traffic adj. (costs not TRS) -2.97
    Finantial incentives -0.19
    Modulation of charges 0.00
    Cross-financing -18.23
    Other revenues -0.32
    Application of lower unit rate 0.00
    Total adjustments -22.47
    AUCU 39.39
    AUCU vs. DUC -36.3%
    Cost exempt from cost sharing by item - 2023 €'000 €/SU
    New and existing investments 1,174.7 0.59
    Competent authorities and qualified entities costs 122.5 0.06
    Eurocontrol costs 941.4 0.47
    Pension costs 0.0 0.00
    Interest on loans 0.0 0.00
    Changes in law 2,159.9 1.09
    Total cost exempt from cost risk sharing 4,398.4 2.21
    Focus on AUCU

    The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (38.20 €) is -38.2% lower than the nominal DUC (61.86 €). The difference between these two figures (-23.66 €/SU) is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+4.23 €/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+1.02 €/SU);
    - the deduction of the traffic risk sharing adjustments (-7.20 €/SU);
    - the deduction of the traffic adjustment (-2.97 €/SU) for the costs not subject to traffic risk sharing;
    - financial incentives (-0.19 €/SU);
    - cross-financing between Spain Continental and Spain Canarias charging zones (-18.23 €/SU); and
    - the deduction of the other revenues (-0.32 €/SU).
    The share of the regulatory result in the AUCU (before the deduction of other revenues) is 4.8%.

    Regulatory result (RR)

    Focus on regulatory result

    ENAIRE net gain on activity in the Spain Canarias en route charging zone in the year 2023

    ENAIRE reported a net gain of +1.3 M€, as a combination of a loss of -1.6 M€ arising from the cost sharing mechanism, with a gain of +3.3 M€ arising from the traffic risk sharing mechanism and a loss of -0.4 M€ relating to financial incentives.

    ENAIRE overall regulatory results (RR) for the en route activity in Spain Canarias en route charging zone

    Ex-post, the overall RR taking into account the net gain from the en route activity mentioned above (+1.3 M€) and the actual RoE (+2.6 M€) amounts to +3.9 M€ (4.6% of the en route revenues). The resulting ex-post rate of return on equity is 12.4%, which is higher than the 8.2% planned in the PP.

     
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