Cost-efficiency - Poland

Download Report

Terminal charging zone - Poland Others

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 52 39 48 55
Determined costs 61 35 35 35
Difference costs -9 4 13 20
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 +3.6% (or +33.47 PLN2017, +7.87 €2017) higher than the planned DUC. This results from the combination of significantly higher than planned terminal costs in real terms (+31.6%, or +41.2 MPLN2017, +9.7 M€2017) and significantly higher than planned TNSUs (+26.9%). 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 (+26.9%) falls outside 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 +31.6% (+9.7 M€2017) higher than planned. This is the result of higher costs for the main ANSP, PANSA (+41.7%, or +9.9 M€2017) and the NSA (+28.4%, or +0.3 M€2017) and lower costs for the MET service provider (-4.6%, or -0.2 M€2017) and the other ANSPs (Bydgoszcz and Warmia-Mazury, -30.4%, or -0.3 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 (+41.7%, or +9.9 M€2017) result from:
- Significantly higher staff costs (+48.4%) 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” as well as “additional payment for overtime in regional units connected with terminal traffic increase”.
- Significantly higher other operating costs (+29.4%), reflecting higher costs of materials, energy, maintenance, training and travel.
- Significantly higher depreciation costs (+24.6%) reflecting the use of “so called ”dynamic allocation keys” in PANSA cost allocation process” which resulted in higher portion of costs being allocated to zone 2 due to higher traffic.
- Significantly higher cost of capital (+50.8%) reflecting a much higher than planned asset base.
RP3 summary
When considering the whole of RP3 (2020-2024) for Poland terminal charging zone 2, actual TNSUs are +16.6% higher than planned, while actual costs in real terms are +4.6% higher than the determined costs (some +29.5 MPLN2017 or +6.9 M€2017). As a result, the weighted average actual unit cost over RP3 (1 072.56 PLN2017 or 252.08 €2017) is -10.3% lower than planned in the PP (1 195.16 PLN2017 or 280.89 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 245.45
Inflation adjustment 35.98
Cost exempt from cost-sharing -10.02
Traffic risk sharing adjustment -34.90
Traffic adj. (costs not TRS) -10.38
Finantial incentives -2.99
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -5.39
Application of lower unit rate 0.00
Total adjustments -27.70
AUCU 217.75
AUCU vs. DUC -11.3%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -2,174.1 -12.07
Competent authorities and qualified entities costs 320.9 1.78
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 47.6 0.26
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -1,805.6 -10.02

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (936.65 PLN or 217.75 €) is -11.3% lower than the nominal DUC (1 055.80 PLN or 245.45 €). The difference between these two figures (-119.15 PLN/SU or -27.70 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+154.75 PLN/SU or +35.98 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-43.11 PLN/SU or -10.02 €/SU);
- the deduction of the traffic risk sharing adjustments (-150.11 PLN/SU or -34.90 €/SU);
- the deduction of the traffic adjustment (-44.65 PLN/SU or -10.38 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-12.86 PLN/SU or -2.99 €/SU); and
- the deduction of other revenues (-23.17 PLN/SU or -5.39 €/SU).
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is -31.5%.

Regulatory result (RR)

PANSA net gain/loss on activity in the Poland terminal charging zone 2 in the year 2024

PANSA reported a net loss of -63.3 MPLN, as a combination of a loss of -66.1 MPLN arising from the cost sharing mechanism, with a gain of +5.1 MPLN arising from the traffic risk sharing mechanism and a loss of -2.3 MPLN relating to financial incentives.

PANSA overall regulatory result (RR) for the terminal charging zone 2 activity

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-63.3 MPLN) and the actual RoE (+7.0 MPLN) amounts to -56.3 MPLN (-42.3% of the terminal revenues). The resulting ex-post rate of return on equity is negative (-41.5%).

RP3 summary
When considering the whole of RP3 (2020-2024), PANSA generated a cumulative loss in respect of cost sharing of -49.8 MPLN, as actual total costs for RP3 were higher than planned. The traffic risk sharing mechanism generated a gain of +19.3 MPLN. Adding the gain of +0.1 MPLN to be retained by the ATSP in respect of financial incentives and the actual RoE (+26.9 MPLN over RP3) leads to an overall regulatory result of -3.5 MPLN, which corresponds to an average ex-post rate of return on equity of -0.5% (compared to 3.8% initially planned in the PP).