Following an out-of-court settlement agreement concluded between Tallinna Vesi and Tallinn University of Technology (TalTech) on 9 October 2026, the Supreme Court accepted the University’s abandonment of its claim, set aside the earlier decisions of the lower courts in the case and terminated the proceedings.
The disputes date back to 2010, when changes to the statutory framework governing water service tariffs and the tariff-setting methodology gave rise to prolonged legal uncertainty. Until then, water service tariffs had been set by the local authority. Following a legislative amendment, responsibility for tariff regulation was transferred to the Estonian Competition Authority, which introduced its own recommended methodology. It was not until the Supreme Court’s 2017 judgment that the framework for future tariff regulation was clarified. Subsequently, water service tariffs were approved by the Competition Authority, and Tallinna Vesi based its subsequent tariff-setting on those approvals.
The parties considered that, without a settlement, the court proceedings could continue for several more years. The agreement aims to bring the long-running disputes to an end, avoid further costs of proceedings and enable the parties to focus fully on their core activities.
Under the agreement, Tallinn University of Technology agreed to abandon its claim, and Tallinna Vesi agreed to pay a settlement amount of EUR 372,000, approximately equivalent to half of the principal amount claimed, and to reimburse the agreed ancillary costs and the costs of proceedings submitted to the court.
Heiki Raadik, Chief Financial Officer of Tallinn University of Technology, emphasised that, in addition to TalTech’s own claim, the litigation also covers claims of Tallinn University and the Estonian Academy of Music and Theatre pursued by TalTech. The settlement therefore concerns all three universities.
“The core activities of universities are teaching and research, and it is in our interests to devote as many resources as possible to these purposes. The settlement allows us to bring years of litigation to an end and avoid further legal costs. Under the agreement, Tallinna Vesi will reimburse the universities’ legal costs and pay approximately half of the principal amount claimed. We consider this a reasonable resolution that enables the universities to focus on their core activities,” Raadik explained.