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With reference to the article published on the Delfi e-channel on 20 October 2026, AS Tallinna Vesi confirms that it has signed an out-of-court settlement with Tallinn University of Technology to resolve a legal dispute concerning prices for water service, the parties entered into a settlement agreement on 9 October 2026. Tallinn University of Technology has submitted an application of withdrawal of claim to the Supreme Court of Estonia. Based on this filing, the proceedings in the matter are expected to be concluded during October.

The background to the disputes dates back to 2010, when changes introduced to the national regulation of water service rates and the pricing methodology led to prolonged legal uncertainty. While local governments had previously set water service rates, these changes meant that pricing regulation now passed to the Competition Authority, which adopted its own recommended methodology. It was not until the Supreme Court’s 2017 ruling that final clarity was provided regarding further price regulation and from then on, prices for water service were approved by the Competition Authority, and Tallinna Vesi based its subsequent pricing on these approvals.

Between 2020 and 2024, some of the customers filed court claims because they believed they had incurred financial losses. Both sides estimate that, without a compromise, the court proceedings could continue for years. The aim of the settlement is to put an end to the protracted disputes, avoid further escalating litigation costs, and enable the parties to focus on their core activities.

According to the settlement, Tallinn University of Technology will withdraw its claim and, as a compromise, Tallinna Vesi will pay 372 thousand euros — an amount comparable to half of the claimant's principal claim — and compensate for the agreed ancillary costs and the litigation costs. 

Taavi Gröön, Chief Financial Officer of Tallinna Vesi, said that the settlement allows the company to focus entirely on its core business of providing vital water and wastewater services. “The litigation may last for years, entailing additional costs and requiring a considerable amount of time from all parties involved. Given the current situation, we believe that signing a settlement agreement is the most practical and balanced way to put an end to disputes dating back to the previous decade, and to focus on providing and developing vital water services for our customers,” said Gröön. He also said that the company has always provided consumers with stable, high-quality water services. During the period in dispute, the price previously established by the local authority was in effect.

Heiki Raadik, Chief Financial Officer  of Tallinn University of Technology, emphasised that TalTech is representing not only its own claims in the legal dispute, but also those of Tallinn University and the Estonian Academy of Music and Theatre. Therefore, the compromise affects all three universities.

“The core activities of universities are teaching and research, and it is in our interest to allocate as many resources as possible to achieving these goals. This compromise allows to bring an end to the years-long legal dispute and avoid further escalating court costs. As part of the settlement, Tallinna Vesi will compensate the universities for their court costs and pay around half of the principal amount claimed. We consider this a reasonable solution that allows universities to focus on their core activities,” Raadik explained.

Tallinna Vesi has also proposed settling other pending legal disputes concerning prices for water service from the previous decade based on the same principles. The costs associated with the settlement will be covered from a provision for claims that was established in previous periods.

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

Taavi Gröön

Chief Financial Officer

Tallinna Vesi

[email protected]