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The stock plummeted 6.8% in Tallinn, the steepest decline since June 6, and traded 4.5% lower at 6.79 euros at 11:18 a.m. local time. The shares have declined 4.2% this year compared with a 21% average decline for the company's Eastern European utilities peers, writes LETA.

As reported, Tallinna Vesi said it has received an order from the Competition Authority (CA) informing the company that should the company fail to submit a tariff application reducing current prices by 14.11.2011, the CA intends to take action and unilaterally impose a 29% reduction in the company’s current tariffs.

In order to impose such a reduction, the CA has invoked the 02.11.2010 Decree of the Minister of Economy and Communications, which enables temporary prices to be enforced. In addition and in support of its decision the Competition Authority has taken the extreme action of declaring the privatisation contract signed in 2001 to be illegal.

The company believes that by declaring the privatization illegal and using a Ministerial decree to attempt to force down ASTV’s tariffs the CA as an agency representing the Estonian state has shown a disregard for legal due process.