Notice regarding legal matters concerning AS Tallinna Vesi


Notice regarding legal matters concerning AS Tallinna Vesi

The Legal Chancellor of Estonia has issued a proposal to the Tallinn City
Government to bring its 30.09.2009 decree nr 75 establishing water and
wastewater tariffs in Tallinn from 01.01.2010 into compliance with the Public
Water and Sewerage System Act and the Constitution. The Legal Chancellor has
stated that the City as a regulator have failed to analyse and itemise the
costs of providing water and wastewater services in Tallinn and have not
accounted justified profitability in accordance with the law, which contravenes
the constitutional legality principle. 
AS Tallinna Vesi at this stage has no official information about Tallinn City
Government's position on the matter and therefore cannot predict any future
course of action. The Company will undertake to inform the shareholders and the
public of any developments in this field as soon as more information becomes
available. 
The Parliament of Estonia is currently reviewing the Anti-Monopoly Bill, which
passed its first reading on 09.03.2010 and was distributed for consultations,
requesting comments from the industry by 23.03.2010. AS Tallinna Vesi was not
formally approached in the consultation round. Nevertheless, the Company
submitted its position and proposed amendments via the representative body of
the Estonian water industry, EVEL. EVEL submitted consolidated comments for the
industry to the Parliament on 22.03.2010. At present there is no clear
information about what effect this bill would have on the Company's tariff
mechanism, as there are no references to price methodology in the Bill itself. 

Priit Koff
Head of Communication
AS Tallinna Vesi
Tel. + 372 6262 209
priit.koff@tvesi.ee