Sabesp details 10.6% tariff equilibrium rate adjustment
Sabesp is detailing a regulator-approved adjustment to its water and sewage tariffs.
Rhea-AI Filing Summary
Sabesp is detailing a regulator-approved adjustment to its water and sewage tariffs. The company reports a 10.6% increase in the equilibrium rate, which is the technical rate level used in the regulatory framework. This change reflects factors such as recognition of the regulatory asset base, operating expenses, non-manageable costs, compensatory adjustments from the prior regulatory cycle, and other financial items.
After incorporating market effects, inflation measured by IPCA between July 2024 and October 2025, and tax items related to PIS/COFINS, Sabesp calculates that the average tariff applied to users will rise by 6.5%. The company links part of the improvement in operating items to a higher number of connections and volumes, driven by anticipated universalization of services, while also noting the end of rate coverage for the Alto Tietê PPP as a negative factor. These changes define the new price levels customers will pay going forward.
Positive
- Regulator-approved rate increase: Sabesp reports a 10.6% rise in the equilibrium rate and an average 6.5% increase in user tariffs, supporting higher regulated price levels.
Negative
- None.
Insights
Regulator-approved tariff changes lift Sabesp’s allowed rates and user prices.
Sabesp describes a 10.6% increase in its equilibrium rate under ARSESP Resolution No. 1,748/2025. This stems from items such as lag in regulatory asset base recognition, operating expenses, non-manageable expenses, compensatory adjustments for the 4th regulatory cycle from 2021–2024, and other financial components. Together with market effects and inflation, these elements define the company’s updated regulated revenue framework.
The company also highlights specific drivers: higher connections and volumes from anticipated universalization support operating improvements, while the end of rate coverage for the Alto Tietê PPP reduces non-manageable expense recovery by about R$130 million. These offsetting effects are folded into the equilibrium rate calculation alongside regulatory asset remuneration and social-tariff and performance-bonus mechanisms.
After factoring in inflation (IPCA from Jul/24 to Oct/25) and tax changes captured in “delta PIS COFINS,” Sabesp estimates an average tariff adjustment of 6.5% for users. This means customer bills, on average, will be 6.5% higher than before the adjustment, within the parameters set by the regulator.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What rate adjustment did Sabesp (SBS) announce in this 6-K?
How much will Sabesp (SBS) customers’ tariffs increase on average?
What factors contributed most to Sabesp’s 10.6% equilibrium rate increase?
How did the Alto Tietê PPP affect Sabesp’s rate calculation?
What time period does the inflation component in Sabesp’s adjustment cover?
What is the role of delta PIS COFINS in Sabesp’s tariff adjustment?
AI-generated analysis. How Rhea-AI works. Not financial advice.
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
registrant in connection with Rule 12g3-2(b):
COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP
Publicly-held company
CNPJ nº 43.776.517/0001-80
NIRE nº 35.3000.1683-1
MATERIAL FACT
Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (“Company” or “Sabesp”), in compliance with the provisions of the Brazilian Securities Commission (“CVM”) Resolution No. 44, dated August 23, 2021, as amended, and as a complement to the Material Fact disclosed on December 2, 2025, informs its shareholders and the market in general of further details regarding the rate adjustment authorized by ARSESP Resolution No. 1,748/2025 (“Resolution”).
The increase in the equilibrium rate of 10.6% is explained as follows:
| (a) | Lag in RAB recognition | 3.54% | |
| (b) | Opex | 1.42% | |
| (c) | Non-Manageable Expenses | -0.41% | |
| (d) | Regulatory Asset Base | 0.63% | |
| (e) | Compensatory Adjustment 4th cycle | -5.37% | |
| (f) | Other Financial Items | 0.68% | |
| (g) | Equilibrium Rate Adjustment (real terms) | 0.50% | = ∑ (a) to (f) |
| (h) | Market Effects | 3.41% | |
| (i) | Inflation | 6.11% | |
| (j) | Total before taxes | 10.26% | =(1+g+h)*(1+i)-1 |
| (k) | Delta PIS COFINS | 0.36% | |
| (l) | Total with taxes | 10.65% | =(1+k)*(1+j)-1 |
(a) Correction since Aug/24 eliminating the timing mismatch. Values prior to Aug/24 were not considered as they precede the effective date of the URAE-1 contract.
(b) Improvement due to increased number of connections and volume, driven by the anticipation of universalization.
(c) Main impact related to the end of rate coverage for the Alto Tietê PPP (-R$130 million).
(d) Remuneration of the regulatory asset base.
(e) Compensatory adjustment for the 4th cycle (2021–2024), judicial demands, and reforms and cancellations from the 4th cycle.
(f) Removal of financial components from the initial rate, more than offset by performance bonuses, social rate (ARSESP Resolution 1,544/2024), FMSAI rates, among others.
(h) Effects of volume and consumption mix by rate class.
(i) IPCA from Jul/24 to Oct/25.
(k) Update of the effective regulatory rate (URAE-1 vs. 4th cycle).
The average adjustment of 6.5% in the rate applied to users is calculated by applying inflation (i) and delta PIS COFINS (k).
São Paulo, December 2, 2025.
DANIEL SZLAK
CFO and IRO
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
| By: | /s/ Daniel Szlak
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Name: Daniel Szlak
Title: Chief Financial Officer and Investor Relations Officer |
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