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 EUR60 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 Timofejev
Chairman of the Board of AS Tallinna Vesi
Tel: +372 626 2200
Email: aleksandr.timofejev@tvesi.ee (mailto:aleksandr.timofejev@tvesi.ee)
|