Estonian Competition Authority

Press release: Tallinn Circuit Court dismisses AS Tallinna Vesi’s complaint in the dispute between the company and the Competition Authority

With its judgement of 26 January 2017, the Tallinn Circuit Court dismissed AS Tallinna Vesi’s appeal in the tariff dispute between AS Tallinna Vesi and the Competition Authority. In addition, the court ordered payment of EUR 40,000 in procedure expenses in favour of the Competition Authority.

The Public Water Supply and Sewerage Act, which entered into force on 1 November 2010, granted the Competition Authority the authority to approve the price set for water. The price was previously agreed upon in the contract between the Tallinn City Government and the company. Since the application by AS Tallinna Vesi to coordinate the price of water services provided in Tallinn failed to comply with the Act, then on 2 May 2011 the Competition Authority decided to dismiss the application. The Authority issued a precept to AS Tallinna Vesi on 10 October 2011, in which it required the company to bring the prices into conformity with the current Act.

AS Tallinna Vesi challenged both the decision of the Competition Authority as well as the precept. On 6 May 2015, Tallinn Administrative Court dismissed AS Tallinna Vesi’s complaint, and on 26 January 2017 Tallinn Circuit court also dismissed the complaint.

“Yesterday's decision was an important milestone for the Competition Authority in the years-long dispute and it once again reassures the Authority that consumers do not have to pay for the enormous profits of monopolies. While the productivity of the assets of other monopolies (e.g. Imatra Elekter AS, Elering AS, Elektrilevi OÜ, VKG Elektrivõrgud) did not exceed 9% during the period of 2005-2015, then the productivity of the assets of AS Tallinna Vesi was, at the same time, between 13–21%,” said Märt Ots, Director General of the Competition Authority.

Release submitted by:
Maarja Uulits
Head of External and Public Relations Department
667 2420 | 667 2400