Competition Authority requests explanations from Tallinna Vesi regarding the
price components serving as a basis of the prices of water services, as part of
its supervisory review procedure, linked to the rejection of the tariff
application for Tallinn and Saue City on the 4.12.2018.
On 6.12.2018, Competition Authority notified the company of the initiation of a
supervisory review procedure. Currently, the Competition Authority finds the
prices of water services provided by the company in Tallinn and Saue City to be
non-compliant with the requirements specified in the Public Water Supply and
Sewerage Act.
The Competition Authority's view is that the sales revenue of the company should
be lower by order of magnitude of EUR 10 million.
In the same notification, the Competition Authority granted ASTV the possibility
to provide its views on the price components underlying the valid prices for
water services, taking into account the views provided in the notification. The
CA states that if ASTV does not provide its further explanations regarding the
facts indicated in their notification at the latest by 07.01.2019, the CA will
decide on their further action. This could include issuing an order to the
company.
The Company is currently considering its position.
A judgement from the ongoing International Arbitration (ICSID) proceedings is
expected imminently. Depending on the outcome of the proceedings, any further
reductions in tariffs imposed by the CA would give ASTV grounds to bring a
second International Arbitration claim, including to offset potential
compensation claims received from customers.
Eliis Vennik
Head of Customer Relations and Communications
Tallinna Vesi
(+372) 626 2275
Eliis.vennik@tvesi.ee
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