Market announcement

Title

AS Tallinna Vesi’s operational performance during 2019

Message

Tallinna  Vesi  has  demonstrated  excellent  operational performance throughout
2019. The   company  maintained  consistent  and  high-quality  drinking  water,
together with effective wastewater disposal.

Continuous supply of high-quality drinking water

The  quality of drinking water in Tallinn  remains high, and water samples taken
from  customers' taps  in 2019 were  99% compliant, with  all requirements. Even
though compliance remains very high, the result was somewhat lower in comparison
with  the result of  2018, as a result  of a new  analytical method, with higher
sensitivity.  As a  consequence of  these tests,  Tallinna Vesi has made further
developments  in the  water network,  and further  enhanced the effectiveness of
ongoing  maintenance  regimes,  to  ensure  a  consistent supply of high-quality
drinking water.

Residual chlorine, added to the water after the very last stage in treatment, is
the only way to maintain the quality of drinking water in the network. According
to the renewed drinking water regulation, the concentration of residual chlorine
in  the drinking water leaving the treatment plant can be up to 1 mg/l, which is
dispersed  throughout  the  water  network.  Use  of  chlorine in drinking water
networks  is  common  practice  throughout  the  world,  and helps to ensure the
continued  quality  of  drinking  water  throughout  the year. Tallinna Vesi has
measured  levels  of  residual  chlorine  throughout  the  network, and slightly
increased   the  dosage  at  the  main  treatment  plant,  to  ensure  effective
chlorination  throughout the 1,000km of  water network. This  slight increase in
chlorine  levels  has  generated  some  localised  concerns, but chlorine levels
remain  very low, and tap water is perfectly safe to drink. Despite the concerns
mentioned  above, our customer  survey results reveal  that the number of people
drinking  tap  water,  also  shows  a  growing trend in comparison with previous
years,  and  tap  water  provides  an  environmentally friendly and much cheaper
alternative to bottled water.

Reliable service

Low  water losses and reduced time of average interruptions to water supply, are
a  testament to a  stable and continuous  service provided to  our customers. In
2019, the  average water disruption  time per property  was only 2 hours and 59
minutes.  Incurring  interruptions,  often  caused  by  3rd parties,  within our
extensive  water network are inevitable,  we are committed to  do our utmost for
customers,  and minimise the inconvenience caused  by the repair works. We value
water  as one of the most important natural resources, which must not be wasted.
The  level of leakages in our water network  was at a record low level in 2019 -
12.97% (2018 - 13.7%).

Last  year Tallinna  Vesi had  a few  instances where  the company was unable to
restore  the water supply after repairs by the exact time promised to customers.
Unfortunately,  some of  those interruptions  affected quite  a large  number of
customers, causing the number of failed promises to be higher than in 2018. Such
instances  have  not  become  more  frequent,  nevertheless  we are committed to
analyse  those  and  recognise  the  consequent  effect on our customers. Having
failed  a  promise,  we  always  pay  the  relevant compensation to the affected
customers, on our own initiative.

We continue to make targeted capital investments, renovating or replacing assets
on  the basis of previous condition surveys  and performance data, to ensure the
continued reliability of the network.

We care for the environment

The  issues  with  the  sewerage  network  have also reduced. In comparison with
2018, the  number of sewer blockages dropped  from 603 to 532. At the same time,
the number of sewer collapses increased slightly in comparison with the last two
years.  Some of those collapses, may have been caused by domestic waste that has
been  thrown to the wastewater network. As waste in sewers can cause serious and
unpleasant  consequences, Tallinna Vesi continues  to make continuous efforts to
raise  public  awareness  about  wastewater,  by  organising  open  days  at the
wastewater treatment plant and raising the topic constantly in the media.

In  2019, the final treated  effluent at Paljassaare  Wastewater Treatment Plant
was  compliant with all quality requirements.  With the purpose of assessing the
treatment  efficiency and the quality of wastewater, we continuously monitor for
pollutants,  in  both  the  incoming  wastewater  and  final  treated  effluent.
Wastewater  laboratory analyses the  samples taken from  different stages of the
wastewater  treatment process, and the information received thereby allows us to
further  improve the treatment  efficiency, and ensure  continued final effluent
quality.

In  the fourth quarter  of 2019, Tallinna Vesi  signed a very important contract
for  the  partial  reconstruction  of  the  mechanical  treatment  equipment  at
Paljassaare  Wastewater Treatment Plant.  This is the  largest investment of the
past  decade for the company, with the total cost of EUR7.6 million. The objective
of  the investment is to  replace aged assets, and  further ensure the continued
effectiveness of the treatment process.

 OPERATIONAL INDICATORS OF 2019

 Indicator                   Unit 2019 12 months 2018 12 months 2019 Q4 2018 Q4
-------------------------------------------------------------------------------
 Drinking water
-------------------------------------------------------------------------------
 Compliance of water quality
 at the customers' tap        %           99.04%          99.9%   99.0%  100.0%

 Water loss in the water
 distribution network         %           12.97%          13.7%   14.3%   13.1%

 Average duration of water
 interruptions per property
 in hours                     h             2.99           3.27    3.24    3.45

 Wastewater
-------------------------------------------------------------------------------
 Number of sewer blockages    No             532            603     135     160

 Number of sewer collapses    No             103             88      21      23

 Wastewater treatment
 compliance with
 environmental standards      %             100%           100%    100%    100%

 Customer Service
------------------------------------------------+----------------------+-------
 Number of complaints         No             167|           158      44|     43
                                                |                      |
 Number of customer contacts
 regarding water quality      No             508            258     148      53

 Number of customer contacts
 regarding water pressure     No             478            439     135      91

 Number of customer contacts
 regarding blockages and
 discharge of storm water     No           1,047          1,043     298     284

 Responding written customer
 contacts within at least 2
 working days                 %           100.0%         100.0%  100.0%  100.0%

 Number of failed promises    No             141             33       7       0

 Notification of unplanned
 water interruptions at
 least 1 h before the
 interruption                 %            96.2%          95.2%   94.6%   91.3%


Eliis Randver
Head of Customer Relations and Communication
Tallinna Vesi
(+372) 626 2275
[email protected]