Supreme Court announced that the decision on the tariff dispute between AS Tallinna Vesi and Estonian Competition Authority would be made on 12.12.2017. AS Tallinna Vesi will communicate the decision by making a relevant market announcement at the earliest opportunity.
In February 2017, AS Tallinna Vesi lodged an appeal in cassation with the Supreme Court against the Tallinn Circuit Court’s decision of 26th January 2017, in which Tallinn Circuit Court dismissed the Company’s claim against the Competition Authority as regards to the tariff dispute. On 20th June 2017, the Supreme Court accepted the appeal in cassation for proceedings.
Background of the tariff dispute:
Since May 2011, the Estonian Competition Authority has so far refused to approve AS Tallinna Vesi’s water and sewerage tariff applications. In October 2011, the Estonian Competition Authority issued a precept to AS Tallinna Vesi to reduce tariffs. The Estonian Competition Authority has not changed its opinion, irrespective of the fact that the Estonian courts have previously declared the tariffs’ part of the Services Agreement, which was executed between AS Tallinna Vesi and the City of Tallinn back in 2001, to be a public law contract.
AS Tallinna Vesi’s belief is that under the Administrative Procedure Act, the state is obliged to comply with a public law contract until amendment or repeal thereof.
By its decision of 5th June 2015, Tallinn Administrative Court dismissed the company’s complaint (the Court published the reasoning of the decision on 12th October 2015) and Tallinn Circuit Court also dismissed the company’s appeal by its decision made on 26th January 2017. AS Tallinna Vesi disagreed with the decisions made by the Tallinn Administrative Court and Tallinn Circuit Court, because AS Tallinna Vesi is of the opinion that the Courts had incorrectly applied the law, and wrongly assessed the submitted evidence.
International arbitration proceedings are running separately and in parallel to the local court dispute. The hearings in the international arbitration proceedings were held in November 2016. The procedural orders and decisions issued during the arbitration proceedings, subject to the redaction of confidential information, are available on the ICSID webpage.
Riina Käi
AS Tallinna Vesi
Chief Financial Officer
Ph: (+372) 62 62 262
riina.kai@tvesi.ee