The Competition Authority approved Tallinna Vesi’s application to adjust the price for water services
The Competition Authority granted AS Tallinna Vesi’s application to increase the price for water services by an average of 26 cents per cubic metre. The new price will apply to customers in the service area in Tallinn and Saue and to water companies located in the surrounding municipalities as of 1stOctober.
Tallinna Vesi submitted an application to the Competition Authority on 15 August to adjust the price for water services, which Competition Authority approved it on 19 August. Based on the application, the Company will increase the price for water services in its service area from the 1st October 2022.
The price for water services includes the water and sewerage service fee. According to the approved application, the price for water services in the service area of Tallinn and Saue will increase by 14% on average. From the beginning of October, domestic customers will pay €1.87, including VAT, for one cubic metre of water and sewerage services, and commercial customers €3.57, plus VAT, respectively. The bulk service price for water companies located in the surrounding municipalities will increase to €1.30, plus VAT.
According to Aleksandr Timofejev, Chairman of the Board of Tallinna Vesi, the price of electricity has increased approximately 3.5 times since the current price for water services provided by the Company was applied.
“With inflation of nearly 23% and in a situation where high electricity prices affect all sectors, the current price for water services no longer covers justified costs. The electricity accounts for about 25% of our operational costs and in order to ensure the high quality and consistency of the service, we must increase the price for water services to cover the costs.” The price change will bring Tallinna Vesi additionally about €1.4 million in 2022 and will increase the Company’s annual sales revenue by approximately €5.6 million.
Tallinna Vesi will notify the customers of the new price for water services before entry into force in accordance with the requirements of the Public Water Supply and Sewerage Act.
Since the Public Water Supply and Sewerage Act provides for the gradual harmonisation of the prices for water services charged from domestic and commercial customers, the increase in prices for domestic customers will be higher in percentage terms. In addition to the electricity price and the requirement for price harmonisation, the addition of a component of the supervision fee which entered into force from 2022 shall be taken into account in the adjustment of the price for water services, i.e., one part of the price for water services will be the supervision fee for the Competition Authority.
Tallinna Vesi is consistently investing in sustainable technologies, which, among other things, helps to alleviate the sharp rise in electricity prices. “Over the last three years, we have invested approximately €60 million. The goal is to make a number of major investments in the coming years to reduce energy costs and environmental impacts,” Timofejev said. For example, the Company plans to start producing electricity from biogas at its wastewater treatment plant. Today, biogas is used to heat buildings and provide heat for the wastewater treatment process. According to Timofejev, reactive energy compensators have been introduced at major consumption points to save electricity costs. “Recently, we also introduced automated technology to reschedule electricity consumption to the times when prices on the electricity exchange are lower.”
AS Tallinna Vesi is the largest water utility in Estonia, providing services to more than 23,900 private customers and businesses and 470,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange.
The City of Tallinn (55.06%) and the energy group Utilitas (20.36%) own the largest share in the Company. 24.58% of the Company’s shares are freely transferable on the Nasdaq Baltic market.
Aleksandr Timofejev
Chairman of the Board of AS Tallinna Vesi
Tel: +372 626 2200
Email: aleksandr.timofejev@tvesi.ee
