Today, on 12th of February 2014, AS Tallinna Vesi (the Company) has addressed Environmental Committee of the Riigikogu with a proposal to consider a need to change the draft Act Amending the Public Water Supply and Sewerage Act (PWSSA) 569 SE I (Draft) currently in the legislative proceeding of the Riigikogu, the leading committee of which is the Environment Committee.
The Company has proposed to consider supplementing the Draft in a way that would enable to find a solution to the court dispute between AS Tallinna Vesi and the Competition Authority, regarding the prices for water services applicable in Tallinn and Saue. The Competition Authority has refused to allow changes in prices for water services for 2011-2013 in line with the Services Agreement concluded in 2001. At the same time, the conclusion of Estonian courts is that the part of the Services Agreement concerning tariffs is an administrative contract, has finally, i.e. without the right to appeal, entered into force.
The Parties to the court dispute have discussed a possibility to find a solution to the situation but the different interpretation of the Competition Authority’s powers in implementing the law has complicated the discussions.
The Competition Authority is still in the position that despite the legal qualification of the Services Agreement confirmed in the court dispute, the PWSSA does not allow the Competition Authority to make a decision different from the decision made in 2011 nor find a solution. The Company is on firm position that the Competition Authority does have the opportunity to do that under current legislation. At the same time the Company finds that if by supplementing PWSSA the subject causing difference in opinion can be resolved in a manner providing confidence to the Competition Authority, then it would be reasonable to do so in order to remove one legal obstacle to achieving a suitable solution.
The Company emphasizes that drafting a suitable solution is possible only in cooperation of the Riigikogu and all relevant authorities (in particular the Competition Authority). For this reason, ASTV is not offering a specific amendment proposal because it could result in focusing on technical details. The Company deems it important to achieve a joint understanding regarding the necessity and possibility of changing the law and for the parties to find and execute a reasonable solution.
A full copy of AS Tallinna Vesi’s letter to the Environmental Committee is appended as an attachment to current notice.
Mariliis Mia Topp
Head of Communications
AS Tallinna Vesi
Tel: (+372) 62 62 275
mariliis.topp@tvesi.ee
