Competition watchdog approves latest Tallinna Vesi price hike

The Competition Authority has approved new water service rates for Tallinn and the Saue area, with the price set to grow for households and fall for business clients.
Residential customers will have to pay more for water, while business customers will see a price decrease. Currently, in Tallinn and Saue, the cost of water, including VAT, is €2.26 per cubic meter. Starting May 1, this will increase to €2.56. Meanwhile, the price for business customers, which is currently €4.23 per cubic meter, will drop to €4.06.
For an average household, monthly water service expenses will increase by approximately two euros.
"The price adjustment takes into account planned investments necessary to maintain the quality of water and wastewater services, protect the environment and ensure the continuity of this essential service provider," said Aleksandr Timofejev, CEO of Tallinna Vesi.
Tallinna Vesi is required to standardize its pricing due to the Public Water Supply and Sewerage Act, which came into effect in 2023. According to the law, different customer groups must have harmonized pricing principles by July 2026.
According to the Competition Authority's approval, water service prices will change by an average of 8 percent — rising for residential customers and decreasing for business customers. Tallinna Vesi submitted its request to adjust water pricing components in December of last year.
Two percent of the price change is attributed to increased operating costs.
Over the past three years, Tallinna Vesi has invested more than €109 million in infrastructure. The company plans future investments in wastewater treatment plants to ensure that wastewater discharged into the environment via the Baltic Sea meets strict quality requirements outlined in the Urban Wastewater Treatment Directive.
Wastewater service prices will not be standardized immediately. During the legally mandated transition period, Tallinna Vesi, in cooperation with the City of Tallinn, will analyze the pricing methodology for wastewater services. The goal is to update pricing principles and transition to a pollution load-based pricing system by 2026. Under this new system, wastewater service prices will depend on the level of pollution in the discharged wastewater, following the "polluter pays" principle.
In Maardu, water service prices will change by approximately 4 percent. The infrastructure in Maardu belongs to the local water utility, while Tallinna Vesi operates the system and pays rent under a lease agreement with the Maardu water company.
Tallinna Vesi is Estonia's largest water utility, serving more than 25,000 residential and business customers and providing water services to 500,000 end consumers in Tallinn and its surrounding municipalities.
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Editor: Karin Koppel, Marcus Turovski