The Company’s turnover from the main business acitivity, the sales of water and wastewater decreased by 0.1 per cent to 706.7 million kroons (45.2 million euros) and the operating profit from these activities increased by 10.1 per cent to 377.9 million kroons (24.2 milion euros). The real return on invested capital in the Company’s main business was 5.5 per cent in 2010 and 6.3% over the five year period from 2006 to 2010, which is in accordance with the rates of return made by other privatised water utilities.
AS Tallinna Vesi’s CEO Ian Plenderleith noted that the change in regulatory environment leaves the Company in a very uncertain position, especially as there has not been any meaningful discussion between ASTV and the Competition Authority regarding the contractually agreed tariff change.“It is a surprising situation as the Company has fulfilled all the terms and conditions of the contracts signed at privatization and has met or even exceeded all the quality standards on behalf of our customers and the City of Tallinn,“ said Plenderleith, adding that the Company is committed to bringing the same high level of service to all its customers and consumers during this uncertain interim period. „AS Tallinna Vesi’s privatization contract and services agreement were signed in good faith and in full accordance with EU and Estonian legislation. We are doing everything in our power to ensure that the contracts are fully respected, as these have brought and will continue to bring significant benefits to the citizens of Tallinn,“ stressed Plenderleith.
The Company’s Supervisory Council decided to postpone the date of the Annual General Meeting of the Company’s shareholders by one week to May 24th 2011.
Priit Koff
Head of Public Relations
AS Tallinna Vesi
+372 62 62 209
priit.koff@tvesi.ee
