SEC Filing Summary: Companhia de Saneamento Básico do Estado de São Paulo - SABESP
Business Context and Reporting Period
This Form 6-K filing, dated August 30, 2006, reports a material fact regarding a tariff adjustment for SABESP, the Basic Sanitation Company of the State of Sao Paulo. The filing addresses regulatory changes effective as of August 31, 2006, impacting water supply and sewage collection services.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the period. The primary financial metric disclosed is the calculated tariff adjustment rate.
- Calculated Tariff Adjustment Index: 4.68%
- Accumulated Prior Adjustment (COFINS/PASEP): 1.94%
- Total Effective Tariff Increase: 6.71%
Material Changes Versus Prior Period
The material change is the implementation of a new tariff structure based on a formula defined in State Decree #41,446. This adjustment accounts for variations in operating costs (electric power, treatment supplies, taxes) and inflation (IPCA Index) between July 2005 and June 2006. Additionally, the company is applying a deferred 1.94% increase from 2005 related to COFINS/PASEP taxes, which was previously split into two installments.
Guidance, Outlook, and Risks
Management commentary indicates that further details on the adjustment application will be published on the company website and in the Sao Paulo State Official Gazette. The filing includes a standard forward-looking statements disclaimer, noting that future results depend on economic conditions, industry trends, and operating factors. No specific financial guidance or capital expenditure plans are detailed in this document.
Investor Verification Checklist
- Verify the official publication of the 6.71% tariff increase in the Sao Paulo State Official Gazette.
- Confirm the effective date of August 31, 2006, for the new rates on customer bills.
- Review SABESP's Standard Financial Statements (DFP) and Quarterly Financial Statements (ITR) for the underlying cost data used in the 4.68% calculation.
- Monitor the company website (www.sabesp.com.br) for detailed breakdowns of the adjustment application.