Highlights from 2023
Going green became the key phrase that characterized the year 2023. We carried out large investments in water and wastewater treatment and continued the rehabilitation of water and sewerage networks. In partnership with the City of Tallinn, we built three new public drinking water taps, which will help make clean tap water better accessible and reduce the amount of plastic waste generated. We opened a cogeneration plant, which is a significant step as we move towards carbon neutrality. As in many previous years, in 2023 we supported initiatives related to environmental education and aimed at the local community or people with fewer opportunities.
Chairman’s
statement
2023 has been a year of preparing for the future — investing more than ever as a business in going green, ensuring sustainable infrastructure and continuity of our services.
We have also continued to introduce innovative technologies, such as the ice-pigging technique for cleaning pipes and the smart water metering. It is important to us that the way we run our operations is sustainable, and having our gold label renewed by the Responsible Business Index demonstrates this once again. We also value the wellbeing of our employees and have joined the Family-Friendly Employer's Development Programme.
In preparing this annual report, we have introduced a set of sustainability reporting principles for the first time and are moving step-by-step towards their wider implementation.
As the largest water company in Estonia, we impact the daily lives of almost one third of Estonian people. We are aware of this and offer a service that meets all standards, taking into account the impact we have on the environment and nature. The tap water we produce meets all the drinking water standards and the quality of the treated effluent even exceeds the standards currently in place. For now, we only use electricity from renewable sources and have set a number of ambitious targets for reducing energy consumption and generating renewable energy ourselves by 2030. Using biogas from the wastewater treatment process, we have started to produce green heat and power. Our wastewater treatment plant treats almost 40% of all domestic wastewater in Estonia, with the utmost care to keep the Baltic Sea clean.
Investing for the future
In 2023, 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. By 2026, the entire service area will be covered with smart water meters, and more than 40% of customers have already got new smart meters. The new meters provide information on water consumption, giving us a better picture of water use in our service area and allowing us to detect water leaks in customers' pipes as early as possible. This saves the environment and minimizes potential damage to property due to water emergencies.
Compared to the previous year, Tallinna Vesi invested 39 per cent more totalling 35 million euros in fixed assets in 2023.
The investment plan for the coming years is based on the Tallinn Public Water Supply and Sewerage Development Plan 2023–2034 and aims to reduce the environmental impact of water consumption, ensure the continuity of services and sustainable urban development. The investments planned for 2023–2025 will be carried out using loan agreements signed in the spring of 2023 with the Nordic Investment Bank, as well as with AS SEB Pank, Swedbank AS and the Estonian branch of OP Corporate Bank plc.
Current and future investments will continue to ensure high-quality drinking water for Tallinners and help keep the nature clean. Using modern technology and materials will increase the average life of pipes and improve treatment efficiency. This allows us to ensure the continuity of a vital service at an affordable price and with minimal disruption to people’s lives.
New technologies
In 2023, large-scale investment projects continued at the treatment plants, for example, the upgrade of the high-speed filters at the Ülemiste Water Treatment Plant was completed and the renovation of the clarifiers began. We continue to prepare for implementing two major projects in the coming years. The first is to upgrade and reconstruct ozone production for water treatment, and the second is to convert floating bed clarifiers to flotators. These projects aim to reduce the energy consumed by the treatment plant and to increase its production capacity.
At the Paljassaare Wastewater Treatment Plant, the largest project in 2023 was the reconstruction of the digesters, which is expected to result in Tallinna Vesi producing more biogas from the sewage sludge generated during the wastewater treatment process. The first of the two digesters was completed by the end of the year and is ready for commissioning, while the reconstruction of the second digester will be continued in 2024. While the digesters were being reconstructed, work also progressed on a combined heat and power plant, which will not only generate heat from the biogas, but also provide most of the electricity needed for the wastewater treatment process. The cogeneration plant was completed by the end of the year and will be fully operational in 2024. Work will also continue in 2024 to install a knife gate valve between the suction basins at the wastewater headworks in Paljassaare.
In early 2023, our subsidiary Watercom launched a new water pipe cleaning service using innovative ice-pigging technology. Ice-pigging is many times more efficient, faster and better for the environment than any other method of maintenance that has been used to date. The service has got off to a good start and has attracted interest from a number of companies using the pipe systems as part of their core business.
Proven quality
The consistently high level of quality is proof that Tallinna Vesi provides a reliable and safe water and wastewater service — water samples taken during 2023 confirmed that the tap water meets all the strict quality standards for drinking water to 99.87%.
Clean drinking water is a valuable resource that cannot be taken for granted. There are a lot of people, strategic work and science behind excellent water quality. Clean tap water has been ensured by well-targeted investments, an efficient water treatment process, regular monitoring and continuous preventive maintenance work in the water network.
More than 140 km of water mains were cleaned during the year using the ice-pigging method introduced in early 2023. 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 2023, we removed more than 800 tons of debris, 200 tons of grit, 1800 tons of nitrogen and 240 tons of phosphorus from wastewater. The effluent treated at the Paljassaare wastewater treatment plant met all standards in all quarters.
Contributing to the community
Tallinna Vesi provided clean drinking water for the 13th Youth Song and Dance Celebration "Holy is the Land" in July 2023, taking more than 100,000 litres of fresh drinking water to rehearsals and performances. In this way, together with the singers, dancers and the audience, we saved the resources it would have taken to produce, transport and dispose of more than 200,000 plastic bottles. In addition to the water tanks, drinking water was provided at the song and dance celebration from drinking water taps installed at the Tallinn Song Field and Kalevi Stadium.
We contributed to Impact Day, a sustainability festival promoting environmental education, and the Investment Festival, as well as community events such as Tallinn Old Town Days, Tallinn Maritime Days, Kalamaja Days, Tallinn Urban Space Festival, Midsummer Day in Põhja-Tallinn, KopliFest and Uue Maailma Street Festival. We also helped organize several sporting events, such as the 51st Lake Ülemiste Run and the IRONMAN.
In 2023, we supported the Kindergarten Õunake and the Ristiku Elementary School in Tallinn, the Estonian Disabled Athlete Sports Association, the Agrenska Foundation, the Autism School, the North Estonian Association of the Blind, the Tallinn Crisis Centre for Women and the Food Bank.
We organized open days and guided tours at the Ülemiste Water Treatment Plant and the Paljassaare Wastewater Treatment Plant, and held discussion groups on topics related to water and the environment. In total, more than 2,600 people participated in these initiatives.
Outlook for 2024
On 21 September 2023, we submitted an application to the Competition Authority 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 Maardu service area and to other water companies. Subject to approval by the Competition Authority, the new prices will be applied in 2024. The need for water price adjustments is due to justified cost increases and investments to ensure the operation of vital services, reduce the environmental impact of water consumption and maintain a clean environment.
I would like to sincerely thank the whole dedicated team of Tallinna Vesi and Watercom, the members of the Supervisory Council and our customers, consumers and partners for the good co-operation!
Aleksandr Timofejev
Chairman of the Board
Highlights from 2023
Going green became the key phrase that characterized the year 2023. We carried out large investments in water and wastewater treatment and continued the rehabilitation of water and sewerage networks. In partnership with the City of Tallinn, we built three new public drinking water taps, which will help make clean tap water better accessible and reduce the amount of plastic waste generated. We opened a cogeneration plant, which is a significant step as we move towards carbon neutrality. As in many previous years, in 2023 we supported initiatives related to environmental education and aimed at the local community or people with fewer opportunities.
Large investments in water and wastewater treatment
In 2023, we reconstructed the first of two biogas-producing digesters at the Paljassaare Wastewater Treatment Plant. A new pump has been installed at the headworks, the reconstruction of the effluent outlet tower at the plant has been completed and the reconstruction of the aeration tanks is continuing.
At the end of the year, a combined heat and power plant was completed at the wastewater treatment plant that converts biogas from the sewage sludge stabilization process into electricity and heat. All the energy generated by the CHP will be used at the wastewater treatment plant and all the company’s electric cars will be powered by electricity generated from wastewater. This is an important step for us as we move towards carbon neutrality.
At the Ülemiste Water Treatment Plant, the renovation of the high-speed filters was completed and the upgrading of the clarifiers began. Preparations are also underway for two major projects — the upgrade of ozone production and the conversion of floating bed clarifiers to flotators.
Continued rehabilitation of water and sewerage networks
In 2023, we built and reconstructed more than 27 km of water and sewerage networks. The largest works were carried out on Jõe and Pronksi Streets, Vana-Kalamaja Street, E. Vilde and Akadeemia Road, Kuklase and Vaablase Streets, Pärna, Reinvaldi and Kuhlbarsi Streets, Tehnika, Magasini and Punane Streets and on Smuuli Road. Individual supply points have been built for the apartment buildings in the Lasnamäe and Mustamäe areas. The sewers in the Mustamäe district have been rehabilitated using the no-dig methods that are better for the environment. In total, more than 12 km of pipes were reconstructed using no-dig methods in 2023.
To ensure security of supply, in 2023 we built another pressure pipeline for the Teletorni wastewater pumping station and reconstructed the supply pipeline of the Lasnamäe booster pumping station.
All these upgrades will help to increase the security of supply and ensure the smooth operation of water and wastewater services for a large number of Tallinners.
Nõmme water supply crisis exercise
In March, we switched the water supply from the groundwater wells in the Nõmme district to drinking water treated at the Ülemiste Water Treatment Plant for 10 hours. The aim of the test was to map out the options for ensuring the water supply to the local residents in the event of a major power cut in the district, which would stop the borehole pumps from supplying water to the area. The test has given us confidence that in a crisis situation it is possible to connect the Nõmme district to the water network supplied by Lake Ülemiste and provide clean drinking water for the residents.
Loan agreements to finance investments
In May 2023, Tallinna Vesi signed a syndicated loan agreement with AS SEB Pank, Swedbank AS and the Estonian branch of OP Corporate Bank plc, and in June 2023 a loan agreement with the Nordic Investment Bank for a total of EUR 131 million. With the loan agreements signed, the company will finance projects planned for the period 2023–2025 at the water and wastewater treatment plant and will invest in the reconstruction and construction of networks, which result from the company's strategy and the objectives of the Tallinn Public Water Supply and Sewerage Development Plan.
The gold label for responsible business
In May, we renewed the gold label in the Responsible Business Index we received in 2021. This is a very important recognition for the company as it shows that our work in producing high quality drinking water and collecting and treating wastewater and stormwater is done in a sustainable way.
Thinking green means acting green
We aim to make fresh tap water as conveniently available as possible in urban areas. Choosing tap water over bottled water significantly reduces the amount of plastic waste generated. To this end, in 2023, in partnership with the City of Tallinn, we built three new public drinking water taps. Thus, a total of 41 public drinking water taps were opened across the capital in the summer.
Smart water meters
In the summer of 2023, we started installing smart water meters for our contractual customers. With smart meters, customers no longer need to report their water meter readings. The advantages of a smart meter include the speed and accuracy of data transmission, as well as security and reliability. In addition, the smart meter indicates faults and possible leaks. By the end of 2023, more than 40% of Tallinna Vesi’s customers had a smart meter installed. By the end of 2026, the entire service area will be covered with smart water meters.
International recognition for our information security systems
In June, Tallinna Vesi was awarded a certificate of compliance with the ISO 27001 standard for information security management systems. The ISO/IEC 27001:2013 certification confirms the reliability of the company, the quality of the operation of the information systems and the security of the data entrusted to us. We will continue to invest in our information systems and training of staff to maintain this level.
Tallinna Vesi is a supporter of national defenders
In June, we were awarded the title of “Supporter of National Defenders”, which is presented once a year by the Minister of Defence, in recognition of companies and organizations that have excelled in supporting national defence.
Co-operation exercise “Splash II”
In September, a co-operation exercise “SPLASH II” was held on and around Lake Ülemiste, during which various authorities and companies practised responding to an aircraft accident with casualties. The exercise simulated the response to an aircraft accident, search and rescue operations, pollution response, as well as the overall management of the crisis. As a vital service provider, we need to keep our crisis preparedness at a high level, and large-scale exercises give us an important indication of our actual preparedness.
Tallinna Vesi joined the family-friendly employer’s programme
In November, we were selected by the Ministry of Social Affairs to participate in the Family-Friendly Employer’s Programme and were awarded the initial label of the programme. This comprehensive programme, which will run for almost two and a half years, will give us the opportunity to refine our organizational culture and activities under the guidance of mentors to make them more family- and employee-friendly.
Contribution to the local community
As in many previous years, in 2023 we supported initiatives related to environmental education and aimed at 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 community events such as the 13th Youth Song and Dance Celebration, Tallinn Old Town Days, Tallinn Maritime Days, Kalamaja Days, Tallinn Urban Space Festival, Midsummer Day in Põhja-Tallinn, KopliFest and Uue Maailma Street Festival. We also helped organize several sporting events, such as the 51st Lake Ülemiste Run and the IRONMAN.
In 2023, we supported the Kindergarten Õunake and the Ristiku Elementary School in Tallinn, the Estonian Disabled Athlete Sports Association, the Agrenska Foundation, the Autism School, the North Estonian Association of the Blind, the Tallinn Crisis Centre for Women 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 topics related to water and the environment.
Team building day full of sports
In October, Tallinna Vesi and Utilitas held their first co-operation day at the Kalev sports hall. Being both providers of vital services, we wanted to bring the staff of the two companies closer together. The day started with an information breakfast, followed by a team training session and a friendly basketball match. This time, it was Utilitas who won the travelling cup.
Watercom launches ice-pigging service
Watercom managed to meet the profit target set by the group also in 2023, despite the difficult situation in the construction market. However, 2023 was the year of ice-pigging. Namely, at the beginning of the year, the company launched a new water pipe cleaning service using innovative ice-pigging technology. Ice-pigging is many times more efficient, faster and better for the environment than any other method of maintenance that has been used to date. The service has got off to a good start and interest in the new technology is high.