Highlights from 2024

One of the key words that guided us through 2024 was cooperation. It guided us as we developed relationships with our customers, planned joint projects with our partners and embraced new development opportunities within the company.

During the year, there has been a marked improvement in the way we manage customer enquiries. Customer satisfaction and feedback has gradually improved, in particular satisfaction with our contracts, billing and also the replacement of water meters. Customer focus is and will remain important to us.

Chairman’s
statement

One of the key words that guided us through 2024 was cooperation. It guided us as we developed relationships with our customers, planned joint projects with our partners and embraced new development opportunities within the company.

During the year, there has been a marked improvement in the way we manage customer enquiries. Customer satisfaction and feedback has gradually improved, in particular expectation with our contracts, billing and also the replacement of water meters. Customer focus is and will remain important to us and I am very pleased that we are moving in the right direction with that.

We continued to invest in environmental protection, sustainable infrastructure, and the continuity of the vital water services we provide. We also continued to expand the use of innovative technologies, such as ice-pigging to clean pipes and smart water metering.

In preparing this report, we have taken a further step in applying the principles of sustainability reporting with a view to their full implementation in the nearest future. This gives us a better perspective on all the areas of responsibility in which we are involved.

As the largest water company in Estonia, our business affects more than a third of the population. We recognize this and provide services that meet all requirements, considering the impact of our business on the surrounding living and natural environment. The tap water we produce meets all drinking water standards and the quality of the treated effluent is even better than required by current standards.

We now use only electricity from renewable sources and have set ourselves a number of ambitious targets for 2030, including reducing our energy consumption and producing our own renewable energy. We have already started to produce green heat and power using biogas from the wastewater treatment process. At our wastewater treatment plant, we treat almost 40% of the municipal wastewater collected in Estonia with the utmost care and even higher efficiency than the standards require to keep our Baltic Sea clean.

A good example of cooperation is the pipe work we carry out in the city during the summer months, which we are increasingly doing as joint projects with the city and other utility owners. This minimizes disruption to people and the city. 2024 was a landmark year — we built and rehabilitated 45 kilometres of pipes, more than 40% of it using environmentally friendly no-dig methods. An important contribution to the development of the urban area is the construction of separate stormwater systems, which will help to reduce the risk of flooding during heavy rainfall.

Investing for the future

In 2024, Tallinna Vesi continued to install smart water meters at a rapid pace. This will free our customers from the obligation to report their water meter readings every month. More than 60% of customers have already got new smart meters, and the plan is to cover the entire service area with smart water meters by 2026. The new meters provide information on water consumption, giving us a better indication of water consumption in our service area and allowing us to detect leaks in customer pipes as early as possible. This will help protect the environment and minimize potential property damage from water accidents.

In 2024, Tallinna Vesi invested approximately 50 million euros in its fixed assets. This was 15 million euros more than in the year before. These investments will ensure the continuity of water services in our service area and improve the quality of the services we provide.

The investment plan for the coming years is based on the Tallinn Public Water Supply and Sewerage Development Plan 2023–2034 and is aimed at reducing the environmental impact of water use, ensuring the continuity of services and sustainable urban development. These and future investments will continue to ensure a high quality of drinking water for our customers and will help to keep the natural environment clean. The use of modern technologies and materials will extend the average life of pipelines and improve the efficiency of treatment systems. This will allow us to ensure the continuity of the vital services we provide at affordable prices and with minimal disruption to people's daily lives.

Modern technologies

In 2024, investment projects continued at the treatment plants, such as the renovation of the clarifiers at the Ülemiste Water Treatment Plant and the preparation of two major projects, one to upgrade and reconstruct the ozone production used in water treatment and the other to replace the sedimentation technology currently used in the clarifiers with flotation technology. These projects aim to reduce energy consumption, improve the reliability of the treatment plant and increase its production capacity.

One of the major projects at the Paljassaare Wastewater Treatment Plant was the reconstruction of the digesters, which was completed in 2024. While the digesters were being reconstructed, a combined heat and power (CHP) plant was also being built, which will allow the biogas to be used not only to generate heat, but also to produce most of the electricity needed to run the wastewater treatment process. The CHP plant is now complete and has been tested for energy production. This plant will increase the plant's resilience to prolonged power outages. In the summer, we started work on the reconstruction of the secondary clarifiers. Over the next three years, we will reconstruct 12 secondary clarifiers, which will further enhance our biological treatment.

Our subsidiary Watercom continued to expand the use of ice-pigging technology for cleaning water pipes, launched in 2023. Ice-pigging is many times more efficient, faster, and better for the environment than any other maintenance method used to date. The service has got off to a successful start, attracting interest from a number of companies whose core business uses pipelines. At the end of 2024, Watercom invested in equipment that will allow the company to rehabilitate pipes using a no-dig method, i.e. without digging a trench. The service has been launched, deployment and development is in progress.

High quality that is proven

Quality indicators showing consistently high performance prove that the water and wastewater services provided by Tallinna Vesi are reliable and safe — water samples taken during 2024 confirmed that our tap water meets all the strict quality standards for drinking water to 99.6%.

Clean drinking water is a valuable resource that cannot be taken for granted. It takes a lot of people, strategic work and science to deliver excellent water quality. Clean tap water has been achieved through targeted investment, efficient water treatment, regular monitoring and continuous preventive maintenance of the water network.

More than 140 km of water mains were cleaned in 2024 using the ice-pigging method, which has been used for water pipe maintenance for two years. Ice-pigging is a unique maintenance technology that involves preparing a mass of ice flakes from a solution of water and table salt and pumping this mass through a water pipe.

During 2024, we removed more than 730 tons of debris, 200 tons of grit, 1,800 tons of nitrogen and 240 tons of phosphorus from the wastewater. Throughout the year, the treated effluent from the Paljassaare Wastewater Treatment Plant met all standards and even exceeded them for many parameters.

Contributing to the community

Throughout the summer, 53 public water taps in Tallinn provided clean drinking water for everyone. In addition, Tallinna Vesi supported a number of community and sports events, such as the Investment Festival and IRONMAN Tallinn — just to name those with the largest number of visitors — by providing tanks with fresh water.

In August, we took part in the Opinion Festival for the first time, chairing a discussion on sustainable consumption in the "Energetic Economy" panel. In the same month, a long-established sporting event took place, the 52nd edition of the Run around Lake Ülemiste, hosted by Tallinna Vesi. We contributed to Impact Day, a sustainability festival promoting environmental education, and community events such as Tallinn Old Town Days, Summer Day of the Association of Large Families in Tallinn and Harju County, Tallinn Maritime Days, Kalamaja Days, Tallinn Urban Space Festival and KopliFest.

As a supporter of the Estonian Paralympic Committee, the company cheered for the Estonian para-athletes competing in the Paris Paralympics, which took place from 28 August to 8 September.

We supported organizations that do valuable work in helping people in need, such as the Estonian Agrenska Foundation, the Autismikool Charity Fund, the North Estonian Association of the Blind, the Tallinn Women Crisis Centre, the Estonian Food Bank and the Tallinn Children's Hospital Foundation. We also continued to support the Kindergarten Õunake and the Ristiku Primary School in Tallinn.

We organized open days and guided tours at the Ülemiste Water Treatment Plant and the Paljassaare Wastewater Treatment Plant, held discussion groups on water and environmental issues, and participated in the Water Day organized by the Estonian Waterworks Association. In total, more than 2,300 people took part in these initiatives.

As a result of the cooperation project with the students from the Estonian Academy of Arts, an eye-catching street art was designed and produced to decorate the facades of water pumping stations across the city.

Outlook for 2025

As we enter the next year, we will continue with our planned investments to secure and develop the vital water services that we provide. A number of the projects mentioned above will continue with the reconstruction of pipelines — in cooperation with other utility owners and the City of Tallinn — and the construction of stormwater systems. We are moving forward with the ozonation project at the water treatment plant, introducing electric generators at the pumping stations across the city, and installing additional screens at the main pumping station in Paljassaare to enhance mechanical treatment. At the wastewater treatment plant, we are working on a solution to increase biogas production.

We consider it important to contribute to the Estonian water industry as a whole, and to this end we participate in the working groups of the Estonian Waterworks Association and the European Federation of National Associations of Water Services (EUREAU).

We will also continue to work to harmonize the price of the service for private and business customers, as required by law, and to maintain the investment capacity needed to ensure clean drinking water and a clean environment, as well as the continuity of the services we provide. For these reasons, the Competition Authority decided on 6 December 2024 to proceed with our application to change the prices for water services. The application concerns the prices for water services in the main service area in Tallinn and Saue, in the service area in Maardu and for other water companies. The new prices are expected to take effect in 2025, subject to the Competition Authority’s decision.

I would like to thank the entire dedicated team at Tallinna Vesi and Watercom, the members of the Supervisory Council, our customers, consumers and cooperation partners for the good and constructive cooperation!

Aleksandr Timofejev
Chairman of the Board

Highlights from 2024

The keyword for 2024 was environmental protection. We made major investments in water and wastewater treatment and continued to rehabilitate water and wastewater networks. Modernizing the water infrastructure will help to reduce service interruptions and ensure a high-quality water supply. During the summer, 53 public taps were opened to the public, helping to increase access to clean tap water and reduce plastic waste. As in many previous years, we supported environmental education initiatives in 2024, targeting the local community and people with fewer opportunities.

Large investments in water and wastewater treatment

Our aim in 2024 was to continue to invest to future-proof our infrastructure and ensure the continuity of the vital services we provide at prices consumers can afford. Last year, nearly €50 million was invested in fixed assets. Planned investments in water and wastewater treatment plants amounted to €19 million.

Pipeline work without digging up streets

In 2024, we rehabilitated 45 km of water and wastewater networks, more than 40% of them using no-dig methods, which avoid large excavations, are environmentally friendly and cause less disruption to people's daily lives. In 2024, for example, the supply pipe in Masina Street in the city centre, the pipeline in Tondimõisa Park and Siili Street, the pipeline in Tondiloo Park, the chain house project on Õismäe Road, the pipelines in Härmatise, Räitsaka, Suur-Ameerika and Kreutzwaldi streets and in the Võlvi-Liivamäe area were completed.

In addition to the ongoing work to ensure the quality of drinking water, Tallinna Vesi is actively developing the city's sewer system, which is specifically designed for stormwater. For example, larger upstream stormwater pipes were built on Kolde Avenue and Kopli and Paavli streets.

We supported Estonian athletes preparing for the paralympics

We supported the preparation of athletes for the Paris Paralympic Games by signing a cooperation agreement with the Estonian Paralympic Committee. The preparation of Paralympic athletes was just one targeted part of Tallinna Vesi's support for the promotion of parasports in Estonia. Tallinna Vesi and the Estonian parasports community have been working together for more than ten years, with Tallinna Vesi having previously been a long-time supporter of the Estonian Disabled Athlete Sports Association. Over the years, the water company's support has helped to improve sporting opportunities and the overall quality of life for people with disabilities in Estonia.

Improvements to biological wastewater treatment

Over the next three years, we will invest around €9 million to improve the biological wastewater treatment process. This will increase the efficiency of nitrogen and phosphorus removal from the wastewater treated at the Paljassaare Wastewater Treatment Plant, ensuring that the water returned to the environment is of the highest purity. The project involves the reconstruction of 12 secondary clarifiers of the biological treatment system at the Paljassaare Wastewater Treatment Plant, where activated sludge is separated from wastewater. Modern technology and equipment will help meet increasingly stringent environmental targets and ensure more energy-efficient wastewater treatment.

Tallinna Vesi added sustainability criteria to its syndicated loan

Tallinna Vesi amended its syndicated loan agreement to include sustainability criteria that support the strategic objectives of the company, with SEB Estonia acting as the sustainability coordinator for the loan.

Tallinna Vesi's syndicated loan agreement includes sustainability criteria and annual targets to meet the company's environmental, social and governance (ESG) objectives. Following this amendment, approximately 82% of Tallinna Vesi's total lending is now linked to green or sustainability-related instruments, underlining the strength of the company's sustainability strategy and providing a solid foundation for its future projects.

A plan to concentrate operations at two sites

Tallinna Vesi is planning to move out of its buildings on Ädala Street and continue its operations at two sites – at the water treatment plant in Ülemiste and the wastewater treatment plant in Paljassaare. There are both economic and environmental reasons for concentrating operations at two sites. The current buildings on Ädala Street, built almost 60 years ago, are old, inefficient in terms of energy use and no longer meet the company's needs. The new building is expected to be completed in 2026.

Clean drinking water for all

In the spring, we opened public water taps in Tallinn to ensure that everyone has access to clean drinking water during the summer season. In total, we opened 53 public taps in the capital, providing healthy drinking water of controlled quality until November. To this end, more than 3,000 water samples were taken during the year. According to a customer survey conducted in 2024, around 90% of people living in Tallinn and the surrounding area prefer to drink tap water.

Public taps are popular and actively used by health enthusiasts, families with children spending time outdoors and people walking their pets. In summer, especially in hot weather, the need to drink water also increases.

Tallinna Vesi and EKA students created street art on water pumping stations

Tallinna Vesi carried out a project to decorate four water pumping stations in Tallinn with street art by young people studying at the Estonian Academy of Arts. We gave the young street artists a chance to bring change and a touch of glamour to the city, and to prove that well-executed graffiti can bring joy to everyone. Together with the young artists, we sincerely hope that the people of Tallinn will appreciate the artwork created on the walls of the pumping stations, and that street art will continue to be a source of joy for all passers-by for a long time to come. The water pumping stations decorated with street art can be found at Vilde tee 132a, Võsa tee 26a, Sepa 30 and Veeriku 1 in Tallinn.

Tallinna Vesi held its first key customer day

Tallinna Vesi held it first key customer day at the Ülemiste Water Treatment Plant, inviting its partners and presenting them issues and developments that are currently important to the company.

Customers learned more about the challenges and trends facing the company, the principles of water pricing, ongoing pipeline works and future plans, as well as projects related to storm water management. We also talked about the crisis management and resilience issues and explained the operation of the water and wastewater treatment plant and the ice-pigging technology used we use to clean pipelines.

We support successful students through scholarships

We support and recognise successful students in universities and vocational schools to help them become leaders in their field. We believe it is important to motivate hardworking and active students and to promote the vital water sector. At the same time, we want to attract professionals with fresh knowledge to join the company. In 2024, we awarded scholarships at TalTech, Tallinn University of Applied Sciences, Estonian University of Life Sciences, Tallinn Center of Industrial Education, Tallinn Lasnamäe School of Mechanics and Tallinn College of Applied Sciences.

We joined the diversity charter

On Diversity Day, we joined the Diversity Charter, becoming part of a community that values diversity and equal treatment of its employees, partners and customers. At Tallinna Vesi, we believe it is important for all our employees to be involved in the company's activities and important issues, and we respect and treat each employee equally, regardless of their background. We have also created opportunities for employees to report their concerns and observations about any unfair treatment.

Watercom introduced new equipment for no-dig pipe rehabilitation

The CIPP equipment arrived in 2024 and the first tests were carried out in late autumn. The innovative cured-in-place pipe (CIPP) technology enables environmentally-friendly pipe rehabilitation without digging up streets.

Tallinna Vesi is a supporter of national defenders

In June, we received the "Supporter of National Defenders" recognition, annually awarded by the Minister of Defence to companies and organizations that have excelled in supporting national defence.

Contribution to the local community

As in many previous years, in 2024 we supported initiatives related to environmental education and targeting the local community or people with fewer opportunities.

We contributed to Impact Day, a sustainability festival promoting environmental education, and the Investment Festival, as well as to community events such as Tallinn Old Town Days, Summer Day of the Association of Large Families in Tallinn and Harju County, Tallinn Maritime Days, Kalamaja Days, Tallinn Urban Space Festival and KopliFest. We also supported a number of sporting events, such as the 52nd Run around Lake Ülemiste, hosted by Tallinna Vesi, IRONMAN Tallinn and the Kõrvemaa Cycling Marathon.

In 2024, we supported the Kindergarten Õunake and the Ristiku Primary School in Tallinn, the Estonian Paralympic Committee, the Agrenska Foundation, the Tallinn Children's Hospital Foundation, the Autism School Charity Fund, the North Estonian Association of the Blind, the Tallinn Women's Crisis Home and the Food Bank.

We organised open days and guided tours at the Ülemiste Water Treatment Plant and the Paljassaare Wastewater Treatment Plant, and held discussion groups on water and environmental issues. For the first time, we took part in the Opinion Festival and chaired a discussion on sustainable consumption in the "Energetic Economy" panel.