Sabesp – Material Fact

SÃO PAULO, April 9, 2020 /PRNewswire/ — Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (“SABESP” or “Company”), pursuant to Instruction 358 of the Brazilian Securities and Exchange Commission (“CVM”), dated January 3, 2002, as amended, hereby informs its shareholders and the market in general that the São Paulo State Sanitation and Energy Regulatory Agency (“ARSESP”) published Resolutions nº 980 and nº 979.

Resolution nº 980 disclosing a tariff adjustment index of 2.4924% for the Company, broken down as follows:

  • IPCA variation of 3.3032% in the period;
  • Efficiency Factor (X Factor) of 0.6920%; and
  • Quality factor (Q Factor) of -0.1188%.

However, considering Official Letter SIMA/GAB/370/2020, of the State Secretariat for Infrastructure and Environment, which requests ARSESP to evaluate the possibility of postponing the tariff adjustment for 90 days, further to Decree 64,879/2020, recognizing the state of public calamity resulting from the COVID-19 pandemic, ARSESP decided:

  • To postpone the publication of the new tariff tables, resulting from the annual tariff adjustment to June 10, 2020;
  • The adjusted tariff tables, including the tables of the municipalities of Iperó, Pereiras, Santa Branca and Santa Isabel, will be published by June 10, 2020 and will be applied as of thirty days from their publication, pursuant to Law 11,445/2007;
  • The compensatory adjustments for the postponement of the application of the annual tariff adjustment will be calculated until June 10, 2020; and
  • The amount to be compensated will be distributed in the tariffs in the period between July 10, 2020 and May 10, 2021, when the results of the Third Ordinary Tariff Revision will be applied.

Resolution  No. 979 informs that ARSESP will evaluate  the economic-financial balance of the provision of services in order to restore it in due course, if necessary, as a result of the impact of the exemption from tariffs on water / sewage bills of consumers in the “Residential Social” and “Residential Favela (Shantytown)” categories consumption, registered on 03/19/2020 for 90 days for accounts issued as of 04/01/2020 and which will cover all municipalities operated by the Company.

The full text of Resolution nº 979 and 980 are available on Sabesp’s website, in the Investor Relations area. 

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

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SOURCE Sabesp

https://markets.businessinsider.com/news/stocks/sabesp-material-fact-1029082147

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