The Competition Authority approved Tallinna Vesi’s application to adjust the price for water services
19 Agosto 2022 - 3:14PM
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
1st October.
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 TimofejevChairman of the Board of AS
Tallinna VesiTel: +372 626 2200Email:
aleksandr.timofejev@tvesi.ee
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