AS Tallinna Vesi Resolves Long-Standing Water Pricing Dispute

AS Tallinna Vesi, the largest water utility in Estonia, has resolved a protracted legal dispute with Tallinn University of Technology and two other universities, ending a series of claims that began in 2010. The settlement, reached on 9 October 2026, aims to bring closure to the long-standing issue and allow both parties to focus on their core activities.

The dispute originated in 2010 when changes to the national regulation of water service rates and pricing methodology introduced uncertainty. These changes shifted the responsibility for setting water service rates from local governments to the Competition Authority, which adopted its own methodology. It wasn't until the Supreme Court's 2017 ruling that final clarity was provided, and from then on, prices for water service were approved by the Competition Authority. Tallinna Vesi based its subsequent pricing on these approvals.

Between 2020 and 2024, some customers, including Tallinn University of Technology, filed court claims, believing they had incurred financial losses due to the changes in pricing. Both sides estimated that without a compromise, the court proceedings could continue for years. The settlement agreement, signed on 9 October 2026, was designed to put an end to the protracted disputes, avoid further escalating litigation costs, and enable the parties to focus on their core activities.

According to the settlement, Tallinn University of Technology has withdrawn its claim, and Tallinna Vesi will pay 372,000 euros, an amount comparable to half of the claimant's principal claim. Additionally, Tallinna Vesi will compensate for the agreed ancillary costs and the litigation costs. This settlement is seen as a practical and balanced solution, allowing Tallinna Vesi to focus entirely on providing vital water and wastewater services to its customers.

Heiki Raadik, Chief Financial Officer of Tallinn University of Technology, emphasized that the compromise affects not only the university but also Tallinn University and the Estonian Academy of Music and Theatre.

Tallinna Vesi has also proposed settling other pending legal disputes concerning prices for water service from the previous decade based on the same principles. The costs associated with the settlement will be covered from a provision for claims that was established in previous periods. AS Tallinna Vesi provides services to around 25,000 private and business customers and about 500,000 end consumers in Tallinn and its surrounding municipalities.