Public water supply and sewerage services

There is no competition in water supply and the price is coordinated by the Competition Authority. A water company is a company with a very strong monopoly over an important resource. In view of the legislation, the water network is to a certain extent similar to the electricity network – it is not reasonable to build a parallel network and there are very few examples of competing pipelines. In addition, the local authority determines the water company on its territory. Water supply and sewerage can be considered the oldest monopoly  and can be expected to remain in a similar monopoly situation in the foreseeable future.

From 2022, all water companies will be subject to price regulation by the Competition Authority, including 60 companies prior to the amendment to the law that entered into force at the end of 2021. From 2022, at least ten enterprises serving the municipality (plus smaller enterprises including those serving development areas) were added. Unlike in the energy sector, the vast majority of companies are under municipal ownership. An exception is the listed AS Tallinna Vesi, in which the City of Tallinn is the majority shareholder with 55.06%. OÜ Utilitas is a minority shareholder with 20.36% and the remaining 24.58% are freely traded shares on Nasdaq Baltic.