AS Tallinna Vesi submitted an application to the Competition Authority to adjust the price for water services
15 Agosto 2022 - 2:55PM
AS Tallinna Vesi submitted an application to the Competition
Authority to adjust the price for water services
AS Tallinna Vesi submitted an application to the
Competition Authority on
15/08/2022
to increase the price for
water services by 26 cents per cubic
metre on
average.
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 apply to the Competition
Authority for an increase in the price for water services to cover
the costs.”
The price for water services includes the water and sewerage
service fee. When the application submitted to the Competition
Authority is approved, the price for water services provided by AS
Tallinna Vesi will increase by 14% on average. Upon approval of the
application, domestic customers would pay 1.87 euros, including
VAT, for one cubic metre of water and sewerage services, and
commercial customers 3.57 euros, plus VAT, respectively.
Tallinna Vesi is applying for the increased price for water
services in its service area in Tallinn and Saue. In these areas,
an application for a shortened procedure can be by submitted to the
Competition Authority because the current price has been in force
there for less than three years. In addition, Tallinna Vesi also
seeks to change the bulk service price for water companies located
in the surrounding municipalities. Upon approval of the
application, Tallinna Vesi's annual sales revenue will increase by
5.6 million euros.
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
private 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 TimofejevChairman of the Board of AS Tallinna VesiTel:
+372 626 2200Email: aleksandr.timofejev@tvesi.ee
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