Cost-efficiency - Italy

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Terminal charging zone - Italy Zone 1

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 60 32 34 35
Determined costs 62 33 34 34
Difference costs -1 0 0 1
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.8% 1.2% 1.2%
Determined inflation index NA 105.3 106.6 107.9
Actual inflation rate NA 8.7% 5.9% 1.1%
Actual inflation index NA 112.8 119.4 120.7
Difference inflation index (p.p.) NA +7.4 +12.9 +12.9

AUC vs. DUC

In 2024, the terminal AUC was -11.5% (or -16.26 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TNSUs (+8.1%) and lower than planned terminal costs in real terms (-4.3%, or -1.4 M€2017). It should be noted that the actual inflation index in 2024 was +12.9 p.p. higher than planned.

Terminal service units

The difference between 2024 actual and planned TNSUs (+8.1%) falls outside the ±2% dead-band, but does not exceed 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 (see the main ANSP gain in Box 11).

Terminal costs by entity

The 2024 actual real terminal costs are -4.3% (-1.4 M€2017) lower than planned. This is the result of lower than planned costs for the main ANSP, ENAV (-4.4%, or -1.4 M€2017) and higher than planned costs for the NSA (+6.4%, or +0.01 M€2017).

Terminal costs for the main ANSP at charging zone level

Lower than planned terminal costs in real terms for ENAV in 2024 (-4.4%, or -1.4 M€2017) result from higher than planned actual inflation index (+12.9 p.p.), and:
- Staff costs were lower than planned in real terms (-3.1%), but higher in nominal terms (+8.4%), mainly due to increased assisted air traffic impacting the variable part of remuneration, particularly overtime, and a 2% revaluation of contractual minimums following the November 2022 agreements, and an increase in the workforce.
- Significantly lower other operating costs (-21.6%), mainly due to cost reduction actions implemented during the pandemic, which continue to have a positive effect in 2024.
- Significantly lower depreciation (-8.8%).
- Significantly higher cost of capital (+20.3%), mainly due to a revision of the actual cost of debt calculation (4.06% in 2024), excluding the risk-free rate, in line with Commission Decision (EU) 2024/2035 of 29 July 2024.

RP3 summary

When considering the whole of RP3 (2020-2024) for Italy terminal charging zone 1, actual TNSUs are -1.2% lower than planned, while actual costs in real terms are -4.2% lower than the determined costs (some -6.7 M€2017). As a result, the weighted average actual unit cost over RP3 (196.81 €2017) is -3.1% lower than planned in the PP (203.03 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 149.00
Inflation adjustment 11.31
Cost exempt from cost-sharing 2.40
Traffic risk sharing adjustment -5.44
Traffic adj. (costs not TRS) -0.87
Finantial incentives 1.37
Modulation of charges 0.00
Cross-financing 0.00
Other revenues 0.00
Application of lower unit rate 0.00
Total adjustments 8.77
AUCU 157.77
AUCU vs. DUC + 5.9%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments 155.0 0.62
Competent authorities and qualified entities costs 14.2 0.06
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 147.7 0.59
Changes in law 280.8 1.13
Total cost exempt from cost risk sharing 597.8 2.40

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (157.77 €) is +5.9% higher than the nominal DUC (149.00 €). The difference between these two figures (+8.77 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+11.31 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (+2.40 €/SU);
- the deduction of the traffic risk sharing adjustments (-5.44 €/SU);
- the deduction of the traffic adjustment (-0.87 €/SU) for the costs not subject to traffic risk sharing; and
- the financial incentives (+1.37 €/SU).
The share of the regulatory result (see items 10 to 13) in the AUCU (before the deduction of other revenues) is 20.6%.

Regulatory result (RR)

ENAV net gain on activity in the Italy terminal charging zone 1 in the year 2024

ENAV reported a net gain of +3.9 M€, as a combination of a gain of +2.4 M€ arising from the cost sharing mechanism, with a gain of +1.2 M€ arising from the traffic risk sharing mechanism and a gain of +0.3 M€ relating to financial incentives.

ENAV overall regulatory result (RR) for the activity in terminal charging zone 1

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+3.9 M€) and the actual RoE (+4.1 M€) amounts to +8.1 M€ (20.7% of the terminal revenues). The resulting ex-post rate of return on equity is 9.8%, which is higher than the 5.0% planned in the PP.

RP3 summary

When considering the whole of RP3 (2020-2024), ENAV generated a cumulative gain in respect of cost sharing of +7.7 M€, as total actual costs in TCZ1 for RP3 were lower than planned. The traffic risk sharing mechanism generated a gain of +0.03 M€. Adding the gain of +0.7 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+20.2 M€ over RP3) leads to an overall regulatory result of +28.6 M€, which corresponds to an average ex-post rate of return on equity of 7.3% (compared to 5.2% initially planned in the PP).