Tallinna Vesi's new prices for water services were approved by the Competition Authority
30 Maggio 2024 - 12:30PM
UK Regulatory
Tallinna Vesi's new prices for water services were approved by the
Competition Authority
The Competition Authority approved the
new price for water services in the Tallinn and Saue area at €1.84
per m3 for private
customers and €3.45 per m3
for business customers, plus VAT. Tallinna Vesi had applied
to adjust the components of the price for water services, which has
remained unchanged for the past four years, to reflect the
increased investment needs to improve the continuity of the water
infrastructure and the new legal obligation to harmonise the prices
for water services charged to private customers and
businesses.
“As a provider of a vital service, we have a
responsibility to plan our costs to ensure a high-quality and
sustainable service, today and in the future. We have carefully
considered every cent added to the price for water services because
we want to keep the service affordable for all customers. Our
customers generally use water sparingly and value water as an
important natural resource, the average per capita water
consumption is less than three cubic metres per month,” said
Aleksandr Timofejev, CEO of Tallinn Vesi.
The price for water services in Tallinn and Saue
will change by 28 cents per cubic metre plus VAT for private
customers. The average per capita water consumption in this area is
less than 3 cubic metres per month, which means that on average the
cost of water services will increase by less than one euro per
person per month. The new prices will apply from 1 July.
Tallinna Vesi submitted an application to the
Competition Authority to adjust the price of its water services in
September last year, and as energy costs, for example, have gone
down over the past eight months, it is now possible to continue to
operate at a slightly lower price than originally applied for.
Given the changes in production and operating
costs and the high investment needs in the water infrastructure,
price adjustments are also possible in the future.
Tallinna Vesi last adjusted its price for water
services across all cost categories in 2019, and since then prices
for water services have only changed to reflect the cost of
electricity. “In the same period, however, the overall price
increase has been almost 40%, which has also significantly
increased our costs for the management of the large-scale water
infrastructure,” explained Aleksander Timofejev.
Tallinna Vesi owns Estonia’s largest water and
wastewater infrastructure, which requires continuous investment in
addition to daily maintenance. “In the last four years, we have
invested more than €80 million in renewing our infrastructure.
These and future investments are necessary to ensure high quality
of drinking water, continuity of water services and the cleanliness
of the Baltic Sea,” Timofejev added.
In the Tallinn and Saue areas, the price for
water services approved by the Competition Authority will change
from the current €1.56 to €1.84 per cubic metre, plus VAT. For
business customers, the price for water services will be €3.45 per
cubic metre, plus VAT.
The price for water services to private
customers in Tallinn and Saue has been and will remain among the
lowest in Estonia. The cost of water services in Estonia accounts
on average for about 1% of a household’s net income, while in
Tallinn the cost of water services is less than 0.5% of a
household's net income.
Water pricing is also affected by the new Public
Water Supply and Sewerage Act, which took effect in the summer of
2023 and requires water companies to harmonise the prices for water
services charged to private and business customers within the next
three years. “When it comes to providing water services in Estonia,
the polluter pays principle is becoming increasingly common.
Although this principle has been in place for years, Tallinna Vesi
is now reviewing its tariffs to reflect the amount of polluted
wastewater collected from its customers,” the CEO of Tallinna Vesi
said.
A new price, €3.87 per cubic metre plus VAT,
will also apply to water services provided in the Maardu service
area. This price will be the same for both private and business
customers. In the Maardu area, Tallinna Vesi is a service provider,
but not the owner of the assets. Maardu is therefore a separate
price area, where the investments made to the area from the price
for water services, and the population density have a significant
impact on the price. The price for water services to customers in
Maardu has remained unchanged for more than a decade, while more
than €20 million has been invested in the region and investments
will continue to develop the wastewater system and ensure proper
water quality. With the price change, customers in Maardu will no
longer pay a monthly subscription fee.
AS Tallinna Vesi is the largest water utility in
Estonia, providing services to nearly 25,000 private customers and
businesses and 450,000 end consumers in Tallinn and its surrounding
municipalities. Tallinna Vesi is listed on the main list of
the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the
company are held by the City of Tallinn (55.06%) and the energy
group Utilitas (20.36%). 24.58% of the company's shares are freely
floating on the Nasdaq Tallinn Stock Exchange.
Kristiina Tamberg
AS Tallinna Vesi
Head of Communication and Marketing
+372 52 855 21
kristiina.tamberg@tvesi.ee
Ädala 10, Tallinn 10614
www.tallinnavesi.ee
Grafico Azioni Tallinna Vesi As (LSE:0JPY)
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Da Gen 2025 a Feb 2025
Grafico Azioni Tallinna Vesi As (LSE:0JPY)
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