AS Kalev                 Stock Exchange Release                    9.12.2005



Filing of a statement of claim



AS Kalev filed a statement of claim against AS Elveso, the water undertaking 

of Rae municipality, in the Harju County Court on 7 December 2005, demanding 

performance of the contract and validation of the contractual right.



The plaintiff asks the court to validate AS Kalev’s right to be provided with 

waste water discharge services by AS Elveso at the prices established by the 

Rae Municipality Government, as well as to establish that AS Elveso has no 

right to suspend provision of waste water discharge services to the plaintiff 

without any basis provided by law, the Regulation of the Rae Municipality 

Government, or the contract.



AS Kalev deferred the filing of the statement of claim until the present time, 

holding negotiations with the defendant and hoping to reach an agreement 

on the waste water discharge conditions. By now it is obvious that AS Elveso 

has no desire to resolve the matter.



As a water undertaking with special or exclusive right in the area, AS Elveso 

is bound by law to provide waste water discharge services in the area serviced 

by the public water supply and sewerage system, regardless of the number of 

registered immovables, or the volume or concentration of waste water in the area. 

The owner or possessor of a public water supply and sewerage system (in Rae 

municipality: AS Elveso) must develop the system in the area serviced by the 

public water supply and sewerage system in a manner which ensures that waste 

water is led off from all the registered immovables in the area to the public 

sewerage system. Thus, AS Elveso should develop the treatment facilities to a 

capacity which would enable it to serve AS Kalev.



AS Kalev is of the opinion that AS Elveso exhibits several characteristics of the 

abuse of a dominant market position. AS Elveso could be deemed an undertaking with 

a special or exclusive right in the meaning of Section 17 of the Competition Act. 

In the meaning of the Competition Act, AS Elveso holds a dominant market position 

which cannot be abused by the company – e.g. by charging AS Kalev an unreasonably 

high waste water discharge fee without any legal basis.



On 22 September 2005, AS Elveso informed AS Kalev that the water undertaking would 

suspend provision of the waste water discharge service to the plaintiff as of 

30 September 2005, as the plaintiff had failed to pay for the presented invoices 

in full. AS Kalev believes that the invoices have been appropriately paid in the 

contractual amount, and has only refused to pay for the invoices presented without 

any legal or contractual basis.



AS Kalev consequently asks the court to oblige AS Elveso to fulfill the contractual 

obligation to sell waste water discharge services to AS Kalev at the prices 

established by the Rae Municipality Government, and prohibit the defendant from 

suspending provision of waste water discharge services to AS Kalev.





Ruth Roht

PR manager

+372 6 077 858