Estonia, Markets and Companies, Water

AS Tallinna Vesi’s tariffs continue to be on the same level as in 2010, therefore, the revenues from the sales of water and sewer services fully depend on the consumption.

Operating profit from the main activities has increased by 18.3% to 6.66 million euros. This increase is mainly driven by lower pollution tax costs, compared to the same period in 2014 when the company had to pay the elevated pollution tax due to the fact that the allowed concentration of heavy metals in treated effluent were reduced up to 400 times. Starting from the third quarter of 2014, the company has been issued a new permit for a special use of water, from which these limit concentrations have been removed.

The net profit for the first quarter of 2015, without one-time impacts from pollution tax costs and reassessment of SWAP contracts value in 2014, was 1.4% or 0.08 million euros bigger than for the same period in 2014.

In connection with the ongoing court action regarding the conditions of the privatization agreement, termed as a contract under public law in the Estonian legal system, three hearings have been held in the local court in 2015. The administrative court ruling is expected in May 2015. At the same time, the company would like to stress that this decision will not likely to be final, as both parties may appeal it to the next degree of jurisdiction.