City May Hand Over Pipelines to Tallinna Vesi
Tallinn City Council will decide on March 10 whether to give up, for one euro, the city-owned water conduits and sewage system.
The gift would go to Tallinna Vesi - the city's water utility monopoly, in which both the city and United Utilities (UK) hold roughly 35 percent shares.
Chairman Indrek Raudne, of the council's opposition faction, said the move would harm Tallinners. "Since there is a lack of money, the city is forgoing its responsibilities to a private company, which will then become the burden of the people," Raudne told Eesti Päevaleht.
Tallinn Deputy Mayor Deniss Boroditsh said the deal would not impact consumer prices and that expensive reconstruction costs would then be paid by the company.
Tallinna Vesi - which saw profits shrivel in 2010 - has often been in the midst of controversy, having recently filed a complaint with the European Commission after the consumer protection agency's enforced restrictions on the monopoly, in light of a soaring profit margin. The utility said the legislation unilaterally changed the conditions for privatization of the company without previous consultation. Tallinna Vesi planned to raise prices by 3.5 percent this year.
The utility has also been criticized for shutting off customer faucets when a mediating property maintenance company, BREM, did not pay its bills.
Ott Tammik