Estonia, Legislation, Markets and Companies, Water

“We have analysed the financial results of Tallinna Vesi on the basis of the 2008 financial report and this analysis indicated that the profits earned by Tallinna Vesi are too high,” explained Ots. He added that as 2009 reports indicate that last year the profits were even higher, it is a clear indication that the profits earned in 2009 were also too high and hence the price of the service sold to consumers is also excessively expensive.

Ots stated that the price of the water is determined by the local government – i.e. in case of Tallinna Vesi it is the City of Tallinn and as the price has been determined, the Competition Board cannot abolish it nor contest it.

“We have sent a letter to the city, pointing out the problem and recommending that Tallinn review the price formation,” explained the head of the Competition Board. He remarked that the board has received no feedback from the City Government.