Business Context and Reporting Period
This Form 6-K filing by Companhia de Saneamento Básico do Estado de São Paulo (SABESP) was submitted on August 29, 2003. The document serves as a relevant notice regarding a regulatory tariff adjustment for water supply and sewage collection services effective August 29, 2003.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the period. The document focuses exclusively on the announcement of a tariff adjustment mechanism rather than reporting historical financial performance data.
Material Changes
- Tariff Adjustment: Effective August 29, 2003, tariffs for water supply and sewage collection services will increase by 18.95%.
- Social Tariffs: Tariffs for social and slum categories will be adjusted by a lower rate of 9.0%.
- Regulatory Basis: The adjustment is mandated by Article 28 of the Tariff System Regulation approved by State Decree #41,446 (dated December 16, 1996).
Guidance, Outlook, and Methodology
The filing details the formula used to calculate the Tariff Adjustment Index (IRT), which relies on two components:
- Amount A (Cost-Based): Covers costs for electric power, treatment supplies, federal taxes (including CPMF and Cofins/Pasep), state/municipal taxes, and water resource charges. The adjustment index for this amount is based on the annual variation of these costs relative to billed volume.
- Amount B (Revenue-Based): Calculated as the difference between accumulated Gross Operating Revenues and Amount A. The adjustment index for this amount equals the accumulated IPCA (Brazilian Wide-Ranging Consumer Price Index).
Forward-Looking Statements: The document includes a standard disclaimer that statements regarding future operations, financial condition, and dividend payments are based on management's current estimates and are subject to risks and uncertainties.
Investor Verification Checklist
- Verify the effective date of the 18.95% tariff increase (August 29, 2003) against customer billing cycles.
- Confirm the specific impact of the 9.0% adjustment on the social and slum tariff segments.
- Review SABESP's official website (www.sabesp.com.br) and the São Paulo State Official Gazette for detailed application data.
- Monitor subsequent Standard Financial Statements (DFP) and Quarterly Financial Statements (ITR) for the realized impact of the tariff adjustment on Gross Operating Revenues.