Sabesp Says Arsesp Accepts 3-Month Term to Evaluate Payment Base

Cia. de Saneamento Basico do Estado de Sao Paulo, Brazil’s biggest water utility, request of three months to evaluate, clarify and make proper changes in its regulatory payment base was accepted by Sao Paulo state water and energy regulator Arsesp, according to a statement e-mailed by the company’s investor relations department.

Arsesp defined the deadline starting date as Sept. 5, according to the statement. The regulator suspended a scheduled rate review in July because it didn’t have enough board members to proceed. It maintained the suspension after finding “inconsistencies” in documents the company submitted.

Sabesp, as the utility is known, said in a conference call on Sept. 6 that the tariff process will probably be finalized in 2014. The annual tariff adjustment would be positive if approved by Arsesp, Bradesco analysts Vladimir Pinto and Renata Cristovao wrote in a Sept. 6 report. If the process is delayed until next year, “there is a higher chance that the decision could be impacted by political factors, especially in an election year”, they wrote.

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