Tallinna Vesi: Supreme Court will make the decision on AS Tallinna Vesi's tariff dispute on 12.12.2017

Supreme Court announced that the decision on the tariff dispute between AS
Tallinna Vesi and Estonian Competition Authority would be made on 12.12.2017.
AS Tallinna Vesi will communicate the decision by making a relevant market
announcement at the earliest opportunity. 

In February 2017, AS Tallinna Vesi lodged an appeal in cassation with the
Supreme Court against the Tallinn Circuit Court's decision of 26th January
2017, in which Tallinn Circuit Court dismissed the Company's claim against the
Competition Authority as regards to the tariff dispute. On 20th June 2017, the
Supreme Court accepted the appeal in cassation for proceedings. 

Background of the tariff dispute:

Since May 2011, the Estonian Competition Authority has so far refused to
approve AS Tallinna Vesi's water and sewerage tariff applications. In October
2011, the Estonian Competition Authority issued a precept to AS Tallinna Vesi
to reduce tariffs. The Estonian Competition Authority has not changed its
opinion, irrespective of the fact that the Estonian courts have previously
declared the tariffs' part of the Services Agreement, which was executed
between AS Tallinna Vesi and the City of Tallinn back in 2001, to be a public
law contract. 

AS Tallinna Vesi's belief is that under the Administrative Procedure Act, the
state is obliged to comply with a public law contract until amendment or repeal
thereof. 

By its decision of 5th June 2015, Tallinn Administrative Court dismissed the
company's complaint (the Court published the reasoning of the decision on 12th
October 2015) and Tallinn Circuit Court also dismissed the company's appeal by
its decision made on 26th January 2017. AS Tallinna Vesi disagreed with the
decisions made by the Tallinn Administrative Court and Tallinn Circuit Court,
because AS Tallinna Vesi is of the opinion that the Courts had incorrectly
applied the law, and wrongly assessed the submitted evidence. 

International arbitration proceedings are running separately and in parallel to
the local court dispute. The hearings in the international arbitration
proceedings were held in November 2016. The procedural orders and decisions
issued during the arbitration proceedings, subject to the redaction of
confidential information, are available on the ICSID webpage. 

         Riina Käi
         AS Tallinna Vesi
         Chief Financial Officer
         Ph: ([phone]
         [e-mail]