Sabesp: 9.6% readjustment in water goes into effect this 4th – 05/09/2023 – Market

The water bill for consumers served by Sabesp (Basic Sanitation Company of the State of São Paulo) will be 9.56% more expensive as of this Wednesday (10). The tariff readjustment was approved by Arsesp (São Paulo State Public Services Regulatory Agency) in early April.

The increase took into account the inflation measured by the IPCA (National Consumer Price Index), which stood at 5.6% in the 12 months through February —base period for the readjustment—, the result of the extraordinary tariff review of 5.55% and a “compensatory adjustment” related to 2021 to be deducted of 1.4% another 0.13% discount related to the IQG (General Quality Index) 2023.

Sabesp serves 368 municipalities, has 10.1 million registered water connections, in addition to 8.5 million sewage connections. The minimum tariff varies according to the type of consumer unit. Those who are entitled to the social tariff pay a lower amount.

1. In order to have the consumer unit selected and pay a lower water bill, the family must meet at least one of the following requirements, according to Sabesp:
2. Be registered in the federal government’s CadÚnico (Cadastro Único), with a per capita monthly income (per person in the family) between up to half a minimum wage, which is R$ 660
3. Be unemployed, with the last salary being, at most, up to three minimum wages (currently BRL 3,960) and as long as you have a maximum consumption of 15 m³/month, have held the account for more than 90 days, have not been fired for just cause and does not have debts with Sabesp
4. Living in collective housing considered social, such as tenements and vertical housing

There is also the vulnerable residential tariff, which has a lower value and is intended for users who meet item 1. A new re-registration of families will be carried out from this Wednesday, for redistribution of the benefit, according to the decision taken by Arsesp and 2021. However, this cadastral review is automatic.

The social or vulnerable residential tariff benefit is valid for one year.

In the city of São Paulo, a cubic meter of water will cost R$35.85 for consumption of up to ten cubic meters. The same amount will be charged for sewage, which means that whoever consumes a cubic meter of water, for example, pays R$ 71.70. In the same range, the social tariff will be R$11.99 and the vulnerable tariff will be R$8.53.

Sabesp should be privatized, but SP residents reject it

The privatization of Sabesp, a sanitation company in São Paulo, is rejected by the majority of residents in the state of São Paulo, according to a survey by Datafolha in April.

According to the survey, 53% of respondents say they are against transferring the company to the private sector, while 40% are in favor. The minority (1%) declares to be indifferent, and 6% do not know.

The survey was carried out between April 3rd and 5th, in 65 municipalities in all regions of the state of São Paulo. 1,806 face-to-face interviews were carried out with people over 16 years old. The margin of error is plus or minus 2 percentage points.

Earlier this year, the governor of São Paulo, Tarcísio de Freitas (Republicans), stated that he should privatize Sabesp by the end of 2024. And the model, in his view, should be similar to that of Eletrobras.

According to him, the money collected should be kept in the sector itself for investments and expansion of coverage. “Basic sanitation is the hottest thing, the countries, the funds, are very interested in investing in Brazil.”