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Regulation 2019/317 - Performance and Charging Scheme in the SES

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Commission Regulation (EU) No 2019/317 of 11 February 2019 laying down a performance and charging scheme in the single European sky and repealing Implementing Regulations (EU) No 390/2013 and (EU) No 391/2013 - text published in the Official Journal of the European Union

Objective

To lay down the measures for the functioning of the performance and charging schemes for air navigation services and network functions in the European Union.

Summary

Scope

This Regulation applies to the provision of air navigation services and network functions for general air traffic within the ICAO EUR region, where EU Member States are responsible for the provision of air navigation services.

The Regulation applies also to terminal air navigation services provided at airports located within the territories of the Member States with 80 000 IFR movements or more per year. Member States may decide to apply this Regulation also to other airports within their territories.

This Regulation applies to the ANSPs and the Network Manager.

This Regulation shall apply to the third reference period (calendar years 2020 to 2024 inclusive) and to the subsequent reference periods (each covering five calendar years).

Performance Target Setting

Key performance indicators and indicators for monitoring the performance of air navigation services at EU level are defined for the following key performance areas:

  • Safety
  • Environment
  • Capacity
  • Cost-effieciency

At the latest 19 months before the start of a reference period, the national supervisory authorities shall provide to the European Commission initial cost data and information about traffic forecasts related to the upcoming reference period, as inputs for the setting of Union-wide performance targets.

At the latest 15 months before the start of a reference period, the European Commission shall publish indicative target ranges for the Union-wide performance targets, consisting of the annual minimum and maximum values within which the Commission intends to set the Union-wide performance targets.

At the latest 7 months before the start of a reference period, the European Commission shall adopt the Union-wide performance targets for the key performance indicators.

Performance Plans Contents and Procedures

National supervisory authorities shall draw up performance plans, either at national level or at FAB level. The performance plans must include:

  • binding performance targets, set on the basis of the key performance indicators
  • determined costs for en route and terminal air navigation services
  • description of the incentive schemes
  • description of the main measures aimed at achieving the performance targets
  • confirmation that the plan is consistent with the scope of this Regulation
  • en route traffic forecasts, expressed in terms of IFR movements and in service units and based on Eurocontrol's STATFOR base forecast
  • terminal traffic forecasts, expressed in terms of IFR movements and in service units, based on Eurocontrol's STATFOR base forecast
  • description of initiatives to support cross-border coordination and the provision of cross-border services, which are beneficial to the operational performance and/or cost-efficiency
  • information about major investments and change management plans for the entry into service of major airspace changes or for ATM system improvements

The performance plans may contain additional performance targets set on the basis of the key performance indicators.

The Network Manager shall draw up the Network Performance Plan.

In case the European Commission revises the Union-wide performance targets, Member States shall revise their performance plans and include revised performance targets.

Each EU Member State shall adopt a draft performance plan and submit it to the European Commission, at the latest three months before the start of the reference period to which it relates.

The European Commission shall verify whether the draft performance plans contain all the elements needed to assess compliance with the relevant requirements. If one or several elements are missing, it shall, within one month, request the EU Member State(s) concerned to provide an updated draft performance plan, containing the missing element(s). The Member State(s) shall submit the updated draft performance plan without undue delay (and in any event within three weeks).

The European Commission shall assess the consistency of the national/FAB performance targets contained in the draft performance plans with the Union-wide performance targets within five months of reception and notify the Member State(s) of the consistency or set out recommendations in case of inconsistency. In the latter case, the EU Member State(s) concerned shall, within three months, revise the performance targets and the draft performance plan accordingly (taking into account the Commission's recommendations) and submit the revised draft performance plan to the European Commission.

Within five months of receprion, the European Commission shall assess the revised draft performance plan and if there are doubts about the consistency of the revised performance targets the Commission shall initiate a detailed examination. Within five months of the start of the detailed examination, if the European Commission finds that the revised performance targets contained in the revised draft performance plan are not consistent with the Union-wide performance targets it shall adopt a decision setting out the corrective measures which the EU Member State(s) are to take. The Member State(s) shall, within three months, communicate to the European Commission the measures that they have taken. Where the European Commission finds that those measures are not sufficient to ensure compliance, it shall notify the Member State(s) and shall take, where appropriate, action to address the non-compliance.

Each EU Member State shall adopt and publish its performance plan after it has been assessed by the European Commission to be consistent with the Union-wide performance targets.

Where, as a consequence of the time needed to complete the procedures above, Member States have not been able to adopt performance plans before the start of the reference period, the performance targets contained in the most recent version of the draft performance plans shall apply on a provisional basis, until the performance plans are adopted. Upon the adoption of the performance plans, the performance targets in the cost-efficiency area shall apply retroactively through an adjustment of the unit rates.

EU Member States may revise performance targets and adopt amended performance plans only where both of the following conditions are met:

  • the Member State(s) consider that the intended revision is necessary and proportionate in light of the occurrence of one or more of the following situations:
    • at least one of the alert thresholds is reached and the national supervisory authority has assessed that the resulting effects cannot be sufficiently mitigated unless the performance targets are revised.
    • the initial data, assumptions and rationales, on the basis of which the performance targets were set are to a significant and lasting extent no longer accurate due to circumstances that were unforeseeable at the time of the adoption of the performance plan.
  • the European Commission has, based on a reasoned request by the Member State(s) concerned, decided that:
    • it agrees that the intended revision is necessary and proportionate.
    • the intended revised performance targets are consistent with the Union-wide performance targets.

The European Commission shall adopt the decision within seven months from the date of the submission of the request by the Member State(s).

Any revisions of performance targets adopted shall not apply retroactively.

Financing of Air Navigation Services

Principles for the financing of air navigation services:

  • The determined costs of en route air navigation services shall be financed by en route charges imposed on airspace users
  • The determined costs of terminal air navigation services shall be financed by terminal charges imposed on airspace users
  • Revenues derived from en route charges or terminal charges shall not be used to finance commercial activities of ANSPs

Member States shall establish one or more charging zones for the purposes of incurring en route charges (‘en route charging zone’) and one or more charging zones for the purposes of incurring terminal charges (‘terminal charging zone’).

Member States shall ensure that the geographical scope of charging zones is clearly defined. The charging zones may include services provided by an ANSP established in another Member State in relation to cross-border airspace.

Where air traffic services related to the approach and departure of aircraft are provided jointly for a group of airports, Member States may establish a specific terminal charging zone within the terminal area concerned.

Where Member States decide to establish en route charging zones or terminal charging zones which extend across the airspace for which more than one Member State is responsible, or where Member States decide to establish a common charging zone, they shall ensure consistent and uniform application of this Regulation.

Member States may modify or establish a new terminal charging zone during a reference period, provided that they:

  • consult the airspace users' representatives and ANSPs concerned prior to the modification
  • notify, without undue delay, the Commission and the CRCO of Eurocontrol of the modification
  • provide the Commission, without undue delay, with all of the following:
    • the relevant cost and traffic data adequately reflecting the situation before and after the modification
    • the comments of airspace users' representatives and ANSPs
    • an assessment of the expected impact of the modification on the achievement of the performance targets in the cost-efficiency area and on performance monitoring
    • an update of the performance plan with the relevant data

Member States shall not modify an en route charging zone during a reference period.

The cost base for en route and terminal charges shall consist of the determined costs related to the provision of air navigation services in the charging zone concerned.

Determined costs stemming from new ATM systems and major overhauls of existing ATM systems shall only be included in the cost base where those systems are consistent with the implementation of the European ATM Master Plan.

Determined costs included in the cost bases for en route and terminal charges shall be calculated in national currency. Where a common charging zone with a single unit rate has been established, the Member States concerned shall ensure conversion of determined costs into a single currency, which may be the euro or another national currency of one of the Member States concerned to ensure a transparent calculation of the single unit rate.

The determined costs shall be allocated in a transparent way to the charging zones in respect of which they are incurred.

The determined costs included in the cost bases for en route and terminal charges shall consist of:

  • staff costs; these shall include gross remuneration, overtime payments, and employers' contributions to social security schemes, as well as pension costs and costs of other benefits.
  • operating costs other than staff costs; these shall include costs incurred for the purchase of goods and services used to provide air navigation services, including outsourced services, material, energy, utilities, rental of buildings, equipment and facilities, maintenance, insurance costs and travel expenses.
  • depreciation costs; these shall include costs related to the total fixed assets in operation for the purpose of providing air navigation services. The value of fixed assets shall be depreciated in accordance with their expected operating life, using the straight-line method applied to the costs of the assets being depreciated. The methodology used to calculate depreciation costs shall not be altered during the duration of the depreciation.
  • cost of capital; this shall be equal to the product of the following elements:
    • the sum of the average net book value of fixed assets in operation or under construction and possible adjustments to total assets determined by the national supervisory authority and used by the ANSP and of the average value of the net current assets, excluding interest-bearing accounts, that are required for the purposes of providing air navigation services;
    • the weighted average of the interest rate on debts and of the return on equity.
  • exceptional costs; these shall consist of non-recurring costs relating to the provision of air navigation services, including any non-recoverable taxes and customs duties.

The determined costs included in the cost bases for terminal charging zones shall cover the cost of the following services:

  • aerodrome control services or aerodrome flight information services which include air traffic advisory services and alerting services;
  • air traffic services related to the approach and departure of aircraft within a certain distance of an airport which shall be defined on the basis of operational requirements;
  • the proportional part of the air navigation services common to en route and terminal services.

Member States shall establish cost bases for charges for each charging zone in a transparent manner.

Calculation of Unit Rates and Charges

EU Member States shall calculate the en route and terminal unit rates before the start of each year of the reference period by dividing the forecast number of total en route or terminal service units for the relevant year, into the algebraic sum of the following elements:

  • the determined costs
  • the adjustments for inflation
  • the adjustments resulting from the application of the traffic risk sharing mechanism
  • the adjustments resulting from the application of the cost risk sharing mechanism
  • the adjustments resulting from the application of the financial incentive schemes
  • the adjustments resulting from the modulation of air navigation charges
  • the adjustments resulting from traffic variations
  • a deduction of other revenue
  • cross-financing between en route charging zones, or between terminal charging zones
  • adjustments for differences in revenue resulting from the temporary application of the unit rate
  • adjustments relating to previous reference periods

Unit rates shall be calculated in national currency. Where EU Member States decide to establish a common charging zone, the unit rate shall be calculated in a single currency, which may be the euro or another national currency of one of the Member States concerned. The Member States concerned shall notify the European Commission and the CRCO of Eurocontrol of the applicable currency.

EU Member States shall set a unit rate for each charging zone on an annual basis. Member States shall set a unit rate for year N for each charging zone in line with the applicable requirements.

The European Commission shall verify that the unit rates are calculated in compliance with the requirements. If the European Commission finds that this is not the case, it shall notify the Member State concerned and invite it to submit a revised unit rate.

The en route charge for a given flight in a given en route charging zone shall be equal to the product of the unit rate established for that en route charging zone and the en route service units for that flight.

The terminal charge for a given flight in a given terminal charging zone shall be equal to the product of the unit rate established for that terminal charging zone and the terminal service units for that flight. For this purpose, the approach and departure of a flight shall count as a single flight. The unit to be counted shall be either the arriving or the departing flight.

EU Member States shall exempt the following flights from en route charges (and may expempt them from terminal charges):

  • flights performed by aircraft with a maximum authorised take-off weight which is less than two metric tons
  • mixed VFR/IFR flights in the charging zones where they are performed exclusively under VFR and where an en route charge is not levied for VFR flights
  • flights performed exclusively for the purpose of transport, on official mission, of reigning Monarchs and their immediate family, heads of state, heads of government and government ministers, where it is substantiated by the appropriate status indicator or remark on the flight plan that the flight is performed exclusively for that purpose
  • search and rescue flights authorised by the appropriate competent body

EU Member States may exempt the following flights from both en route and terminal charges:

  • military flights performed by aircraft of a EU Member State or any third country
  • training flights performed solely within the airspace of the EU Member State
  • flights performed exclusively for the purpose of checking or testing equipment used or intended to be used as ground aids to air navigation
  • flights terminating at the airport from which the aircraft has taken off and during which no intermediate landing has been made
  • VFR flights
  • humanitarian flights authorised by the appropriate competent body
  • customs and police flights

EU Member States may collect charges through a single charge per flight. Where charges are billed and collected on a regional basis, the billing currency may be the euro and an administrative unit rate for billing and collection costs may be added to the unit rate concerned.

EU Member States shall ensure that the amounts collected on their behalf are used to finance the determined costs in accordance with the provisions of this Regulation.

Airspace users shall promptly and fully pay all air navigation charges incurred in accordance with this Regulation.

EU Member States shall ensure that effective, and proportionate enforcement measures for the collection of air navigation charges are applied where necessary. Those measures may include denial of services, detention of aircraft or other enforcement measures in accordance with the law of the Member State concerned.

Annexes

The Regulation is supplemented by thirteen Aneexes, detailing various aspects and processes:

  • Annex I. Key Performance Indicators (KPI) For Target Setting And Indicators For Monitoring
  • Annex II. Template For Performance Plans At National Or Functional Airspace Block Level
  • Annex III. Template For The Network Performance Plan
  • Annex IV. Criteria For The Assessment Of Performance Plans And Targets At National Or Functional Airspace Block Level
  • Annex V. Criteria For The Assessment Of The Draft Network Performance Plan
  • Annex VI. List Of Performance-Related Data To Be Provided To The Commission For Monitoring Of Performance
  • Annex VII. Determined And Actual Costs
  • Annex VIII. Requirements For The Calculation Of En Route And Terminal Service Units
  • Annex IX. Unit Rates
  • Annex X. Criteria For The Assessment Of Whether The Provision Of The Services Is Subject To Market Conditions
  • Annex XI. Reporting Tables To Support The Cost Base And Unit Rates To Be Provided To The Commission
  • Annex XII. Essential Elements For The Consultations
  • Annex XIII. Specific Requirements On Incentive Schemes

Entry Into Force

This Regulation entered into force in March 2019.

This Regulation repeals Regulation 309/2013 and Regulation (EU) No 391/2013 with effect from 1 January 2020.

Note 1: Those Regulations shall continue to apply for the purposes of the implementation of the performance and charging schemes pertaining to the second reference period.

Note 2: In order to alleviate the severe impact of the COVID-19 pandemic on airspace users during the third reference period, it became necessary to apply specific provisions for 2020 and 2021 as regards the revision of performance targets in the key performance area of cost-efficiency at Union-wide and local levels, the implementation of incentive schemes and risk sharing mechanisms, as well as unit rate adjustments stemming from those 2 calendar years. Therefore, Regulation 2020/1627 was adopted in November 2020. The provisions of the new Regulation were done by way of derogation. The rules of this Regulation apply, unless otherwise specified in Regulation 2020/1627.

Regulation 2019/317 - Performance and Charging Scheme in the SES (OJ, 31.1.2019)

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