Due to the increase in the price of electricity, Tallinna Vesi has applied to the Competition Authority to revise the prices for water services. The price change will take effect on 1 November and will amount to an average of one cent per cubic metre.
According to Aleksandr Timofejev, Chief Executive Officer of Tallinna Vesi, the price of electricity has increased by approximately 19% since the implementation of the current prices for water services. “The cost of electricity is undoubtedly one of the most significant and important factors affecting water treatment. The production of clean drinking water and the treatment of wastewater are both activities that take place non-stop, around the clock – this means that we do not have the possibility to opt for more favourable hours for our electricity consumption,” explained Timofejev.
The company has previously stated that any further changes in production and operating costs could lead to price changes.
According to Timofejev, the average Estonian household uses three cubic metres of water per family member per month, which means that the prices for water services in Tallinna Vesi’s service area will increase by about 3 cents per person per month without VAT.
The prices for water services include the water and wastewater service charge. From 1 November 2024, the water and wastewater service charge per cubic metre will be €1.85 plus VAT for private customers and €3.47 per cubic metre plus VAT for business customers. A new water price of €3.86 per cubic meter plus VAT will also apply in the Maardu operating area. The Maardu area is a separate price area because Tallinna Vesi is the service provider there, but not the owner of the assets.
Electricity accounts for nearly 50 percent of Tallinna Vesi’s production variable costs. The majority of the electricity is used in the company’s wastewater and drinking water treatment processes and in the pumping stations. Large amounts of electricity are required to run ozonators, which help ensure clean tap water and reduce the amount of chlorine added to tap water. Tallinna Vesi continues to invest in sustainable technologies, which, among other things, will help mitigate rising electricity prices.
One of the important investments towards energy saving and environmental protection is the construction of a cogeneration (CHP) plant using wastewater to produce energy. The CHP plant, which will be commissioned shortly, will help to reduce the amount of electricity purchased in the future by up to 17% of the total electricity used.
AS Tallinna Vesi is the largest water utility in Estonia, providing services to nearly 25,000 private customers and businesses and 500,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company’s shares are freely available for trading on Nasdaq Tallinn Stock Exchange.
Taavi Gröön
AS Tallinna Vesi
CFO
(+372) 62 62 200
taavi.groon@tvesi.ee
