Tallinna Vesi made a loss despite increased sales.

TALLINN – Tallinn water company posted 41.9 million krooni (€2.6 million) loss in first half of 2010 despite the sales made a slight 1.4 percent increase compared to the same period last year.

The company’s revenues from the main services area in Tallinn reduced by 2.6 percent to €22.96 million in the first half of 2010, which is affected by the reduction in the water and sewerage tariff by 0.9 percent, the company reported Friday. The tariffs changed in January 1 this year. The income was also affected by people saving water at home and at work.

However, both the impact of the contract with Maardu Vesi and additional storm water flows following the end of the severe winter weather increased the revenues from water and waste water sales outside of the service area increased by 115 percent to €1.78 million. The sales  in the second quarter improved compared to the first quarter- Total sales for second quarter were €12.5 million, which is 3.5 percent higher than in the same period last year. The first quarter sales this year amounted up to €12.23 million, which is lower by 0.7 percent compared to the same period last year.  The increase is affected by volumes sold to clients within the commercial sector in Tallinn and those clients outside the service area.

Ian Plenderleith , chairman of the board at Tallinna Vesi told the media that the improved economic activity has contributed to an increase in sales volumes in Tallinn.

“This factor combined with our expansion to Maardu has helped offset the impact of largely uncontrollable cost increases in environmental taxes and electricity charges,“ said Plenderleith.

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