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Tallinna Vesi will harmonise price of water service for private and business customers

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The Competition Authority has approved Tallinna Vesi's application to harmonise
the price of water service for private and business customers with effect from
1 July 2026. The change follows from the obligation imposed by law to offer the
same prices to private and business customers, and it reflects the need for
continued investment in clean drinking water, environmental protection, and
maintaining service continuity.

According to Taavi Gröön, Tallinna Vesi's Chief Financial Officer, the company
has been working towards harmonising prices for private and business customers
within the limits set out in the Public Water Supply and Sewerage Act since
2010, a process that has now been completed. Under the implementing provisions
of the Act, water suppliers that have set different prices for private and
business customers must bring these into line with the principle of equal
treatment and fully harmonise them by 1 July 2026 at the latest. Prices will
change by an average of 2.5%, rising for private customers and falling for most
business customers.

The price of water service for private customers in Tallinn and in Harju County
will still remain one of the lowest in Estonia. The average household will see a
rise in their water bill of less than EUR2 a month. While the average Estonian
household currently spends over 1% of its income on water services, the average
water bill in Tallinna Vesi's service area will amount to 0.6% once the change
is implemented.

Residents of Tallinn pay less for water than residents of any of the
neighbouring capitals. From 1 July, a cubic metre of water will cost EUR2.31 for
private customers. For comparison, households pay EUR2.67 per cubic metre of water
in Riga and EUR3.72 per cubic metre in Helsinki in 2026. These prices are subject
to VAT.

In addition to complying with the statutory obligation to harmonise the prices
of water service, the price change was driven by the need for investment. "The
price application takes into account the investments planned for this year,
which are necessary to ensure the quality and continuity of water and wastewater
services, as well as protecting the environment," explained Gröön.

Gröön pointed out that variable costs only represent a small part of the price
change, since the combined heat and power (CHP) plant installed at the
wastewater treatment plant enables the company to reduce its daily electricity
costs. "Based on the results from Tallinna Vesi's CHP plant, we plan to generate
around 10 GWh of electricity at the wastewater treatment plant this year, which
will help us keep our variable costs under control. The CHP plant generates all
the heat and 60% of the electricity consumed at the wastewater treatment plant.
This helps to keep the cost of the service for customers lower than it would be
if the energy were purchased from external suppliers," said Taavi Gröön.

Tallinna Vesi is Estonia's largest water company continually investing in new
technologies to ensure operational continuity. "For example, we use innovative
ice-pigging technology to clean pipes, a method that is unique in Estonia. We
have already made and are planning further investments in the wastewater
treatment plant to ensure that the treated effluent released into the
environment via the Baltic Sea is clean and meets high quality standards," added
Gröön.

The price level in the Maardu service area differs from that in the rest of the
Tallinna Vesi's service area due to the operating model. The infrastructure in
Maardu is owned by the Maardu water company, and Tallinna Vesi operates the
infrastructure in the area, paying rent under a lease agreement with the Maardu
water company.

With regard to wastewater services, a pollution-load-based pricing method will
be introduced in 2026. The price of the wastewater service will depend on the
level of pollution in the wastewater discharged by the customer. Pricing will be
based on the principle that the more a customer pollutes, the higher the price
they will pay. Tallinna Vesi constantly monitors the quality of the wastewater
discharged into the public sewerage system.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to
more than 25,000 private customers and businesses and 500,000 end consumers in
Tallinn and its surrounding municipalities.

Additional information:

Taavi Gröön
Chief Financial Officer
AS Tallinna Vesi
(372) 626 2200
[email protected]
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