Estonia, Legislation, Markets and Companies, Water

The company invested 251.6 million kroons in 2009.

AS Tallinna Vesi laid 43km of new sewerage pipes instead of the planned 39km in 2009, thus giving nearly 1500 families the opportunity to access the public sewerage network including over 200 customers who have been given the chance to connect to the network a year earlier than planned due to the additional pipe constructed, writes LETA.

Tallinna Vesi invested 251.6 million kroons in 2009, of which 208.7 million kroons were invested into networks, 17.4 million kroons in the Paljassaare wastewater treatment plant, 6.4 million kroons into water quality and 19.1 millions kroons into other investments.

As reported, Estonian Parliament this week passed a bill that sets profitability limits to Estonia's largest water supplier Tallinna Vesi.

The bill was passed in first of three readings. Experts suggest that Tallinna Vesi could lose up to half of its profits if the law is passed.

Estonia's competition watchdog recommended on December 1 that Tallinna Vesi lower tariffs because of "unreasonably" high profitability.

Tallinna Vesi return on capital, or the ratio of operating profit to total assets less current liabilities, has exceeded a "justified" level of 8.3% more than twice in 2007 and 2008, considering its monopoly, the watchdog said then, citing an analysis.

In five years, Tallinna Vesi paid out 944 million kroons in dividends, including 230 million this year, reports Bloomberg/LETA.

According to analysts, this has made Tallinna Vesi the most profitable utility in the world. For instance, ten water companies, listed on US stock exchange, had net profit margin of between 6.7 and 20.1% last year.

Tallinna Vesi is co-owned by City of Tallinn.

Tallinna Vesi is listed on Tallinn Stock Exchange since June 1, 2005.

Tallinna Vesi is the largest water utility in Estonia providing drinking water and wastewater disposal services to over 400 000 people in Tallinn and in several neighbouring municipalities of Tallinn.