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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 88 111 NA
    Determined costs 188 95 94 95
    Difference costs -8 -6 17 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% 2.3% NA
    Actual inflation index NA 104.6 107 NA
    Difference inflation index (p.p.) NA +2.9 +4.5 NA
    Focus on unit cost

    AUC vs. DUC

    In 2023, the terminal AUC was +14.7% (or +56 CHF2017, +50.4 €2017) higher than the planned DUC. This results from the combination of significantly higher than planned terminal costs in real terms (+14.1%, or +14.4 MCHF2017, +13.0 M€2017) and slightly lower than planned TNSUs (-0.5%).

    Terminal service units

    The difference between actual and planned TNSUs (-0.5%) falls inside the ±2% dead band. Hence loss of terminal revenues is borne by the ANSPs .

    Terminal costs by entity

    Actual real terminal costs are +14.1% (+13.0 M€2017) higher than planned. This is the result of higher costs for the main ANSP, Skyguide (+15.9%, or +13.9 M€2017) and lower costs for the MET service provider (-21.3%, or -0.9 M€2017).

    Terminal costs for the main ANSP at charging zone level

    Significantly higher than planned terminal costs in real terms for Skyguide in 2023 (+15.9%, or +13.9 M€2017). However, the differences by nature of costs are distorted by the fact that the Skyguide’s costs include significant amounts linked to the additional costs caused by the change in the capitalisation rule in 2023 (+5.9 M€2017). However, in order for this amount not to be billed to airspace users, it has also been reported as negative exceptional item in the determined costs, but not in the actual costs (-100% of negative exceptional costs, or +5.9 M€2017). Other deviations result from:
    - Significantly higher other operating costs (+46.6%),due to higher purchased services and products than planned, primarily due to Skyguide’s response to a 22% increase in technical incidents over the last three years. In the short term, Skyguide increased spending to enhance technical systems. Additionally, Skyguide faces compliance issues and substantial backlog in various areas, including technical systems and infrastructure, necessitating additional costs;
    - Lower depreciation (-3.1%); and,
    - Higher cost of capital (+4.6%), mainly due to a higher fixed asset base and equity ratio;

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

    AUCU components (€/SU) – 2023
    Components of the AUCU in 2023 €/SU
    DUC 400.34
    Inflation adjustment 13.66
    Cost exempt from cost-sharing -1.96
    Traffic risk sharing adjustment 0.00
    Traffic adj. (costs not TRS) 0.10
    Finantial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues 0.00
    Application of lower unit rate 0.00
    Total adjustments 11.81
    AUCU 412.14
    AUCU vs. DUC + 2.9%
    Cost exempt from cost sharing by item - 2023 €'000 €/SU
    New and existing investments -521.3 -1.96
    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 -521.3 -1.96
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (400.32 CHF or 412.14 €) is +2.9% higher than the nominal DUC (388.85 CHF or 400.34 €). The difference between these two figures (+11.47 CHF/SU or +11.81 €/SU) is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+13.27 CHF/SU or +13.66 €/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-1.90 CHF/SU or -1.96 €/SU); and
    - the addition of the traffic adjustment (+0.10 CHF/SU or +0.10 €/SU) for the costs not subject to traffic risk sharing.
    The share of the regulatory result in the AUCU (before the deduction of other revenues) is -12.5%.

    Regulatory result (RR)

    Focus on regulatory result

    Skyguide net gain on activity in the Switzerland terminal charging zone in the year 2023

    Skyguide reported a net loss of -17.5 MCHF, as a combination of a loss of -17.0 MCHF arising from the cost sharing mechanism, with a loss of -0.5 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 loss from the terminal activity mentioned above (-17.5 MCHF) and the actual RoE (+3.2 MCHF) amounts to -14.3 MCHF (-14.1% of the terminal revenues). The resulting ex-post rate of return on equity is -26.4%.

     
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