Estonia, EU – Baltic States, Legislation, Markets and Companies

The tribunal has decided to partly satisfy the European Commission application to intervene in the arbitration between AS Tallinna Vesi, United Utilities and Estonian government. The Tallinn Administrative Court will make a decision in the dispute concerning the damages claim submitted against the Estonian Competition Authority in 2014 on Nov. 19, 2018, Tallinna Vesi told the stock exchange.

On Aug. 22, 2018, the European Commission submitted an application for leave to intervene in the arbitration between AS Tallinna Vesi, United Utilities (Tallinn) B.V. and the Estonian government as a non-disputing party. The Commission requested to intervene and make submissions in the arbitration limited to the jurisdictional question of the possible legal consequences of the judgment of Achmea (case C-284/16 of the Court of Justice of the European Union).  

On Oct. 2, the tribunal decided to satisfy the Commission's application in part, namely the Commission is invited to submit a single written submission of up to 15 pages within 10 days by Oct. 12 2018. Both parties, the claimant and the respondent, may each file comments to the submission by Oct. 26, 2018. The tribunal rejected the Commission's request for access to the documents filed in the case and for attending any further hearing, as no such hearing is either scheduled or foreseen.

There is no fixed deadline on the decision of the tribunal on the arbitration.  

In a judgment made in a dispute between Slovakia and the Dutch company Achmea BV in March this year, the European Court of Justice explained that a provision contained in an international agreement between EU member states according to which an investor in one member state may initiate proceedings in a dispute concerning investments made in another member state against the latter in a court of arbitration with the competence of which that member state has committed to agree runs counter to EU law.

Tallinna Vesi, whose owner United Utilities (Tallinn) B.V. is registered in the Netherlands, bases its claims primarily on the agreement on the protection of investments between Estonia and the Netherlands.

On Oct. 5, the Tallinn Administrative Court ruled that it will make the judgment in the case between AS Tallinna Vesi and the Competition Authority on Nov. 19. The administrative dispute was opened based on an action by AS Tallinna Vesi against the Competition Authority for compensation of tariff income it failed to receive, as well as actions to contest the refusal to review applications by AS Tallinna Vesi for the endorsement of the prices of water services in 2013-2017.

AS Tallinna Vesi is awaiting a decision from the international arbitration body in connection with alleged breach of the agreement on the protection and facilitation of investments between Estonia and the Netherlands.