Sabesp - Material Fact

Rhea-AI Summary

On March 17, 2022, Companhia de Saneamento Básico do Estado de São Paulo - Sabesp announced a 12.8019% tariff increase effective May 10, 2022. This increase is composed of a 10.5437% inflation adjustment, a 0.2142% efficiency factor discount, and a 2.3932% compensatory adjustment. Despite this adjustment, Sabesp's current tariff structure will remain unchanged until further notice. The new tariff charts will be available on the company’s website and customer service centers.

Positive

• Tariff increase of 12.8019% will potentially enhance revenue.
• Inflation adjustment reflects adherence to regulatory frameworks.

Negative

• Current tariff structure remains unchanged, indicating potential operational constraints.
• Higher tariffs may lead to customer dissatisfaction or reduced demand.

SÃO PAULO, March 17, 2022 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp ("Company" or "Sabesp"), in compliance with Resolution 44 of the Brazilian Securities and Exchange Commission (CVM - Comissão de Valores Mobiliários), of August 23, 2021, hereby informs its shareholders and the market in general that, the São Paulo State Public Services Regulatory Agency (ARSESP - Agência Reguladora de Serviços Públicos do Estado de São Paulo) published today Resolution Nº 1,278 which deals with the 2022 tariff readjustment.

The Company highlights the following: 

Art. 1st. To approve the total readjustment of 12.8019% (twelve and eight thousand and nineteen percent) on the tariffs applied by Sabesp, as set out in the attached to this resolution, which results in the following composition:

I - Inflation from February/2021 to February/2022, measured by the IPCA, of 10.5437%.
II - Efficiency factor (Factor X) to be discounted by 0.2142%.
III - Compensatory adjustment of 2.3932%, according to the calculation provided for in NT.F.0010-2022.
IV - IGQ 2020 to be discounted by 0.1490%, according to the calculation provided for in NT.F.0010-2022.

Art. 6th Sabesp's current tariff structure remains unchanged.

§ 1. The definitions dependent on the implementation of the new tariff structure are postponed until its implementation.

The Resolution Nº 1,278 with the new tariff charts was published in the São Paulo State Official Gazette (Diário Oficial do Estado de São Paulo) at this date and will become effective on May 10, 2022.

The tariff charts will be available on Sabesp's website, www.sabesp.com.br and at the Company's customer service centers.

The Resolution can be accessed on link: Resolution 1,278 

IR Contacts:
Mario Arruda Sampaio – (55 11) 3388-8664 (maasampaio@sabesp.com.br) 
Angela Beatriz Airoldi – (55 11) 3388-8793 (abairoldi@sabesp.com.br)

View original content:https://www.prnewswire.com/news-releases/sabesp--material-fact-301505060.html

SOURCE Sabesp

FAQ

What is the new tariff increase percentage for SBS effective May 10, 2022?

The new tariff increase for SBS is 12.8019%.

When was the tariff readjustment resolution published for SBS?

The tariff readjustment resolution was published on March 17, 2022.

What factors contributed to the 12.8019% tariff increase for SBS?

The increase is due to a 10.5437% inflation adjustment, a 0.2142% efficiency factor discount, and a 2.3932% compensatory adjustment.

Where can I find the new tariff charts for SBS?

The new tariff charts will be available on Sabesp's website and at customer service centers.