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Feb. 7 (Bloomberg) -- AS Tallinna Vesi, Estonia’s biggest water utility, rose the most in 21 months after a court kept suspended an order by the competition authority to cut the company’s tariffs until a final ruling.
The stock rose as much as 7.1 percent, the biggest increase since April 2010, trading 7 percent higher at 7.17 euros at 11:20 a.m. in Tallinn. Tallinna Vesi has lost 20.6 percent in the last 12 months, compared with a 38 percent loss for its eastern European peers, according to data compiled by Bloomberg.
The Tallinn Administrative Court yesterday kept suspended the fulfillment of a competition authority order imposing a 29 percent cut in the company’s tariff mechanism, Tallinna Vesi said in a statement earlier today. The suspension will last until the court delivers a ruling on tariffs. No dates have been set yet for the start of proceedings to review the company’s complaint.
The Tallinn-based company, 35 percent-owned by Warrington, England-based United Utilities Plc, filed a complaint last June, saying the Competition Board’s decision to reject the company’s application to raise tariffs violates the terms of a privatization agreement signed in 2001, including a tariff plan through 2015. The Competition Board said last May the tariff increase application can’t be approved because the company’s profitability is “unreasonable.”
--Editors: Elizabeth Konstantinova, Alan Purkiss
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