Tallinn Waterworks Profits Already Too High, Says Competition Authority
The Competition Authority said the capital's water company, Tallinna Vesi, is already earning too much money and company's decision to sue the authority for blocking price hikes is unjustified.
Tallinna Vesi has taken the authority to court, demanding 90 million euros for lost profits between 2011 and 2020, with that sum declining to 50 million if price hikes were to be allowed now, ETV reported on Monday.
The company said that according to the contract with the city of Tallinn, they are allowed to raise water prices if the consumer price index changes, but when it attempted to make the move in 2011, the Competition Authority moved in and blocked any price hikes.
“If we look at the current profit numbers and the company believes it should earn even more, then that wish is clearly unjustified,” said Märt Ots, director of the authority.
At the end of March, Tallinna Vesi reported a 53 million-euro turnover for 2013, on par with the previous year's results. Pre-tax profit was 25 million euros in 2013, down from 29 million the previous year.