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 
|