Foreign investors are doubtless keeping a close eye on the ongoing dispute between Tallinna Vesi, the country’s biggest water utility, and the Estonian Competition Authority, writes Äripäev. This week the authority issued an injunction to the company, demanding that it either submit a proposal by November 14 to cut its service prices or have all current prices unilaterally cut by 36%.
The exact percentage is also a topic of debate since the company is interpreting the injunction as saying that the current water tariff must be cut 29%.
On the news that that the company may lose about 12 million euros in annual earnings due to being forced to lower its water tariff by almost a third, Tallinna Vesi share price fell to the lowest level since it started trading in June 2005.
In a stock exchange statement, Tallinna Vesi said that it completely disagrees with the position of the Competition Authority and will seek a court injunction to block the move.
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