SAO PAULO,
April 17, 2014
/PRNewswire/ -- Companhia de Saneamento Basico do
Estado de Sao Paulo - SABESP
(BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and
sewage service provider in the world based on the number of
customers, informs that, on this date, ARSESP published ARSESP
Resolution 484, which, among other measures:
a) Establishes the application, as of May 11, 2014, of a tariff repositioning index of
5.4408% in relation to current tariffs and an annual efficiency
factor (Factor X) of 0.9386%, to be deducted in the upcoming annual
tariff adjustments;
b) Allows the concessionaire, given the atypical situation
in its market due to the lack of rainfall and the measures to
encourage water savings in order to ensure supply, to apply, at a
more opportune future date, the repositioning index arising from
the tariff revision, proceeding to recalculate and restate the
applicable amounts, in order to ensure its economic and financial
balance;
c) Establishes that the next annual tariff adjustments
will occur on April 11, 2015 and
April 11, 2016, with the next tariff
revision on April 11,
2017;
d) Approves the following annual tariff adjustment
formula, to be applied during the second tariff cycle:
P t = [1 + (IPCA – X)/100] * P
t-1 - FAQ t
In addition, on April 16,
2014, the Board of Directors, pursuant to item VI of article
13 of the Company's Bylaws, given the possibility established by
ARSESP Resolution 484 of the Company applying a repositioning index
arising from the tariff revision on an appropriate and opportune
date vis-a-vis its market situation, decided to postpone the
application of the repositioning index on an opportune date until
the end of December 2014 at the
most.
Aiming to preserve the Company's economic and financial
sustainability conditions, the Board of Directors also decided to
adjust the 2014 budget by R$900
million by reducing expenses and deferring
investments.
The full version of ARSESP Resolution 484 is available in
the Investor Relations section of Sabesp's website.
IR Contacts:
Mario Arruda Sampaio: (55 11) 3388-8664
(maasampaio@sabesp.com.br)
Angela Beatriz Airoldi: (55 11)
3388-8793
(abairoldi@sabesp.com.br)
SOURCE SABESP