Sabesp - Material Fact

Rhea-AI Summary

On July 15, 2020, Sabesp announced a 3.4026% tariff readjustment approved by ARSESP. This comprises an annual adjustment of 2.4924% and a compensatory adjustment of 0.8881%. The compensatory adjustment accounts for the deferment of the annual tariff increase and excludes exemptions for Residential Social and Residential Favela categories, pending further review. The new tariffs will be published in the São Paulo State Official Gazette and take effect 30 days post-publication. Full details can be found on Sabesp's Investor Relations website.

Positive

• Tariff readjustment of 3.4026% approved, potentially increasing revenue.
• Compensatory adjustment acknowledges prior tariff postponement.

Negative

• Exemptions for certain residential categories may reduce potential revenue.
• Dependence on regulatory approvals could impact future tariff adjustments.

SÃO PAULO, July 15, 2020 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (Sabesp or Company), in compliance with Rule No. 358 issued by the Brazilian Securities and Exchange Commission, dated as of January 3, 2002, as amended, and in continuity to the Material Facts disclosed on April 09, June 03, and July 1 of 2020, hereby informs its shareholders and the market in general that the São Paulo State Energy and Sanitation Regulatory Agency (ARSESP - Agência Reguladora de Saneamento e Energia do Estado de São Paulo) published today Resolution nº 1,021 authorizing the Company to apply a tariff readjustment of 3.4026% to its current tariffs, comprised of:

• Annual readjustment 2.4924%
• Compensatory adjustment of 0.8881%.

The compensatory adjustment of 0.8881% refers to the compensation for the postponement of the annual tariff readjustment and does not include the exemption from payment of the Residential Social and Residential Favela categories, which will be part of the Third Ordinary Tariff Review process.

The Resolution with the new tariff charts will be published in the São Paulo State Official Gazette (Diário Oficial do Estado de São Paulo) and will become effective 30 days from its publication.

The full version of the Resolution nº 1,021 is available at Sabesp's Investor Relations' website.

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

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:http://www.prnewswire.com/news-releases/sabesp--material-fact-301094500.html

SOURCE Sabesp

FAQ

What is the new tariff readjustment percentage for SBS?

The new tariff readjustment for SBS is 3.4026%.

When will the new tariffs for SBS take effect?

The new tariffs for SBS will take effect 30 days after publication in the Official Gazette.

What components make up the 3.4026% tariff increase for SBS?

The 3.4026% increase includes a 2.4924% annual adjustment and a 0.8881% compensatory adjustment.

What does the compensatory adjustment refer to for SBS?

The compensatory adjustment of 0.8881% compensates for the postponement of the annual tariff readjustment.

Are there any exemptions in the new tariff for SBS?

Yes, the Residential Social and Residential Favela categories will be exempt from the new tariff, pending further review.