Asekantsler: ärge levitage kuulujutte!

Dear shareholders of AS Tallinna Vesi,

The Ministry of Economic Affairs and Communications has received worrisome news about discontented shareholders of AS Tallinna Vesi. They say, that the Estonian government, namely the Ministry of Economic Affairs and Communications of Estonia and the Estonian Competition Authority have broken the shareholders` rightful expectations to earn profits that were negotiated during the privatization processes.

There are a few misunderstandings that need to be addressed.First, the privatization took place between the city of Tallinn and International Water UU; the Ministry of Economic Affairs and Communications was not an involved party. Neither was the Estonian Competition Authority.

Second, legislation at the time of privatization allowed for setting the price of water to the level necessary for ensuring a reasonable return on capital invested by the water-carrier, but no higher. Unjustified rises in price in order to ensure higher profits were not allowed then, as they are not now. The only thing that has really changed is the supervisory body regulating pricing; this is now the Estonian Competition Authority.

In addition to protecting consumers, the Estonian Competition Authority needs to provide for sustainability in pricing, such that businesses will also endure - the set price level needs to cover operating costs, necessary investments and also reasonable profits.

Allow me to restate for the record - Estonia values the rule of law, laws are followed and protected by all levels of government and all investments here do have legal protection. Likewise, all citizens, as well as public and private organizations are obligated to follow local laws. If you truly feel that the law has not been followed correctly and that the Estonian government has violated your rights, this needs to be addressed to the full extent and settled by a third party.

Spreading rumours that Estonia is an unsafe country for Foreign Direct Investment is clearly malignant. This kind of despicable behavior damages Estonia’s reputation in the eyes of future investors and if this does not desist soon enough, Estonia will have to take steps in order to protect its reputation.