Cost-efficiency - Belgium

Download Report

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 43
Determined costs 70 38 42 44
Difference costs -2 -1 -3 -1
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% 4.3%
Actual inflation index NA 118.3 121 126.2
Difference inflation index (p.p.) NA +2.7 -2.8 -0.3

AUC vs. DUC

In 2024, the terminal AUC was +5.3% (or +11.76 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-7.6%) and lower than planned terminal costs in real terms (-2.7%, or -0.9 M€2017).

Terminal service units

The difference between actual and planned TNSUs (-7.6%) 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 (see the main ANSP loss in Box 11).

Terminal costs by entity

Actual real terminal costs are -2.7% (-0.9 M€2017) lower than planned. This is the result of lower costs for the main ANSP, skeyes (-2.7%, or -1.0 M€2017) and higher costs for the NSA (+1.5%, or +0.01 M€2017).

Terminal costs for the main ANSP at charging zone level

Lower than planned terminal costs in real terms for skeyes in 2024 (-2.7%, or -1.0 M€2017) result from:
- Significantly lower staff costs (-7.2%), mainly due to “lower number of FTE, which is a direct result of ongoing recruitment challenges in an increasingly tight labour market”,
- Higher other operating costs (+4.5%), mainly driven by a provision for major building maintenance following the decision to renovate an existing facility instead of rebuilding it,
- Significantly lower depreciation (-14.0%), mainly due to delays in commissioning radio sites and IT-related projects, including the VCS Main System and the SAT for WAN, caused by supplier issues and difficulties obtaining permits,
- Significantly lower cost of capital (-38.3%), “mainly due to a lower fixed asset base”,
- Exceptional costs which reflect a reporting of negative amount (-2.0 M€ in nominal terms) in 2024 determined costs for skeyes to correct for the difference between planned and actual costs in 2021-22 resulting from resubmission of the RP3 PP.

RP3 summary

When considering the whole of RP3 (2020-2024) for Belgium terminal charging zone, actual TNSUs are -2.9% lower than planned, while actual costs in real terms are -3.8% lower than the determined costs (some -6.4 M€2017). As a result, the weighted average actual unit cost over RP3 (278.83 €2017) is -0.9% lower than planned in the PP (281.22 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 271.11
Inflation adjustment -0.53
Cost exempt from cost-sharing -4.61
Traffic risk sharing adjustment 10.60
Traffic adj. (costs not TRS) 1.65
Finantial incentives 0.36
Modulation of charges -9.84
Cross-financing 0.00
Other revenues -82.08
Application of lower unit rate 0.00
Total adjustments -84.45
AUCU 186.67
AUCU vs. DUC -31.1%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -696.3 -4.68
Competent authorities and qualified entities costs 10.7 0.07
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 -685.7 -4.61

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (186.67 €) is -31.1% lower than the nominal DUC (271.11 €). The difference between these two figures (-84.45 €/SU) is due to:
- the negative inflation adjustment resulting from lower than planned inflation (-0.53 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-4.61 €/SU);
- the addition of the traffic risk sharing adjustments (+10.60 €/SU);
- the addition of the traffic adjustment (+1.65 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (+0.36 €/SU);
- the modulation of charges (-9.84 €/SU); and
- the deduction of other revenues (-82.08 €/SU).
The share of the regulatory result (see items 10 to 13) in the AUCU (before the deduction of other revenues) is -1.0%.

Regulatory result (RR)

skeyes net gain/loss on activity in the Belgium terminal charging zone in the year 2024

skeyes reported a net loss of -1.2 M€, as a combination of a gain of +0.3 M€ arising from the cost sharing mechanism, with a loss of -1.5 M€ arising from the traffic risk sharing mechanism and a gain of +0.1 M€ relating to financial incentives.

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

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-1.2 M€) and the actual RoE (+0.8 M€) amounts to -0.4 M€ (-1.0% of the terminal revenues). The resulting ex-post rate of return on equity is negative (-2.0%).

RP3 summary

When considering the whole of RP3 (2020-2024), skeyes generated a cumulative gain in respect of cost sharing of +6.5 M€, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated a loss of -3.0 M€. Adding the gain of +0.1 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+2.8 M€ over RP3) leads to an overall regulatory result of +6.3 M€, which corresponds to an average ex-post rate of return on equity of 6.5% (compared to 3.0% initially planned in the PP).