Cost-efficiency - Poland

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Terminal charging zone - Poland EPWA

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 16 12 15 17
Determined costs 19 11 12 12
Difference costs -3 1 3 5
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% 3.7%
Actual inflation index NA 127.6 141.5 146.7
Difference inflation index (p.p.) NA +14.2 +25.3 +27.6

AUC vs. DUC

In 2024, the terminal AUC was +6.0% (or +26.70 PLN2017, +6.27 €2017) higher than the planned DUC. This results from the combination of significantly higher than planned terminal costs in real terms (+14.7%, or +6.7 MPLN2017, +1.6 M€2017) and significantly higher than planned TNSUs (+8.2%). It should be noted that the actual inflation index in 2024 was +27.6 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (+8.2%) 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

Actual real terminal costs are +14.7% (+1.6 M€2017) higher than planned. This is the result of higher costs for the main ANSP, PANSA (+13.9%, or +1.4 M€2017) and the NSA (+88.0%, or +0.2 M€2017) and lower costs for the MET service provider (-16.9%, or -0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly higher than planned terminal costs in real terms for PANSA in 2024 (+13.9%, or +1.4 M€2017) result from:
- Significantly higher staff costs (+22.8%) which are explained by “salary increases to maintain PANSA competitiveness, which followed from labour market developments in the Polish economy, and additional staff costs driven by significant increase in inflation rates”.
- Slightly higher other operating costs (+3.0%) reflecting higher costs of materials, energy, maintenance, training and travel.
- Lower depreciation (-4.6%) reflecting mainly slower than planned execution of the investment plan over the previous years.
- Significantly lower cost of capital (-12.2%) resulting from much lower than planned asset base.

RP3 summary

When considering the whole of RP3 (2020-2024) for Poland terminal charging zone 1 , actual TNSUs are +1.3% higher than planned, while actual costs in real terms are -2.9% lower than the determined costs (some -6.1 MPLN2017 or -1.4 M€2017). As a result, the weighted average actual unit cost over RP3 (521.66 PLN2017 or 122.61 €2017) is -4.2% lower than planned in the PP (544.37 PLN2017 or 127.94 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 118.65
Inflation adjustment 20.89
Cost exempt from cost-sharing -0.19
Traffic risk sharing adjustment -4.50
Traffic adj. (costs not TRS) -0.50
Finantial incentives -2.07
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -1.69
Application of lower unit rate 0.00
Total adjustments 11.93
AUCU 130.59
AUCU vs. DUC + 10.1%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -267.3 -2.40
Competent authorities and qualified entities costs 232.6 2.08
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 13.6 0.12
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -21.2 -0.19

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (561.71 PLN or 130.59 €) is +10.1% higher than the nominal DUC (510.38 PLN or 118.65 €). The difference between these two figures (+51.33 PLN/SU or +11.93 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+89.87 PLN/SU or +20.89 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-0.82 PLN/SU or -0.19 €/SU);
- the deduction of the traffic risk sharing adjustments (-19.38 PLN/SU or -4.50 €/SU);
- the deduction of the traffic adjustment (-2.16 PLN/SU or -0.50 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-8.91 PLN/SU or -2.07 €/SU); and
- the deduction of other revenues (-7.28 PLN/SU or -1.69 €/SU).
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is -11.0%.

Regulatory result (RR)

PANSA net gain/loss on activity in the Poland terminal charging zone 1 in the year 2024

PANSA reported a net loss of -9.2 MPLN, as a combination of a loss of -10.2 MPLN arising from the cost sharing mechanism, with a gain of +1.9 MPLN arising from the traffic risk sharing mechanism and a loss of -1.0 MPLN relating to financial incentives.

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

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-9.2 MPLN) and the actual RoE (+1.8 MPLN) amounts to -7.4 MPLN (-12.5% of the terminal revenues). The resulting ex-post rate of return on equity is negative (-20.7%).

RP3 summary

When considering the whole of RP3 (2020-2024), PANSA generated a cumulative gain in respect of cost sharing of +4.4 MPLN, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated gain of +0.4 MPLN. Adding the actual RoE (+7.3 MPLN over RP3) leads to an overall regulatory result of +12.1 MPLN, which corresponds to an average ex-post return on equity of 6.6% (compared to 4.1% initially planned in the PP).