TALLINN — Tallinn’s water utility Tallinn Vesi will feel a pinch on their profit since the Estonian parliament passed utility price control legislation at the end of last week.
The Establishing Price Limitations on Monopolies Act, initiated by the Union of Pro Patria, Reform Party, and Estonian Greens on Oct. 15, 2009 was passed in the Estonian parliament Thursday to protect the consumers from unreasonably high utility prices.
The bill which was passed with 52-3 votes and will take effect on July 15, gives full pricing control over heating companies and water companies to the Competition Authority, regardless of ownership. Heating prices are estimated to fall by 10 to 15 percent, and the monthly water utility from the Tallinna Vesi should fall by 15 percent, according to initial estimates.
Mart Laar, Union of Pro Patria and Res Publica leader told the Postimees newspaper that the act will force utilities to consider the consumers’ interests, and the situation where home consumers are unprotected from the utilities must end.
“If Estonia will leave it unregulated, and the Competition Authority will not receive additional opportunities, then we will be shaved like lambs,” Laar said.
Priit Koff, head of public relations at Tallinna Vesi announced at NASDAQ that the change could affect the quality of work the company does.
“We believe that to date the Competition Authority, the Ministry of Social Affairs, the Ministry of Environment and the City of Tallinn have not yet discussed nor determined any of the quality standards that the company has to achieve,” Koff said.
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