Regulation of Sanitation Services
Sanitation services are provided by states or municipalities, and include water supply, sewage treatment, disposal of rainwater in cities and urban waste, all regulated by the National Sanitation Policy (Law No. 11,445/2007).
With the new legal framework for basic sanitation, established by Law No. 14,026/2020, the National Water and Basic Sanitation Agency (ANA) now has the power to issue reference standards for the sanitation sector.
The National Water and Basic Sanitation Agency does not monitor these sanitation services and does not have the authority to apply penalties, which remains the responsibility of subnational regulatory agencies (municipal, intermunicipal and state). Complaints, reports or suggestions regarding the quality of sanitation services should be made to the subnational agencies.
The public water supply and sewage services provided by the Company are regulated by two Agencies according to the locations of CSA – Companhia do Estado do Amapá, and SABESP – Companhia de Saneamento Básico do Estado de São Paulo.
In the case of Amapá, such services are regulated by ARSAP – Regulatory Agency for Delegated Public Services of the State of Amapá. This Agency was created by State Law No. 0625/2001. Water and sewage services are remunerated through tariffs set by ARSAP during ordinary reviews every 5 years, and if economic-financial imbalance is proven, extraordinary reviews occur. In addition to the tariff adjustments that occur annually.
In the case of the State of São Paulo, services are regulated by ARSESP, the São Paulo Public Services Regulatory Agency, created by State Complementary Law No. 1,025/2007. Water and sewage services are paid for through tariffs set by ARSESP during regular four-yearly or extraordinary reviews, and annual tariff adjustments.
While tariff reviews deal with the recomposition of tariffs so that they are sufficient to cover operating, maintenance and expansion costs under a regime of efficiency for expenses and prudence for investments, readjustments are intended to maintain the tariff level.
Tariff Reviews and Adjustments
Below, we demonstrate information on Tariff Adjustments/Revisions for sanitation concessions of the Equatorial group and/or with relevant shareholding control.
| Year | Event | Index | Beginning | Documents | ||
|---|---|---|---|---|---|---|
| Deliberations | Technical Notes | Detailed Reports | ||||
| 2023 | Tariff Adjustment | 1.06% | 08/30/2023 | APPROVAL RESOLUTION No 003, OF JULY 13, 2023 | NT 002-2023 | N/A |
| 2022 | Tariff Adjustment | 12.24% | 08/30/2022 | APPROVAL RESOLUTION No. 001 OF JULY 26, 2022 | N/A | N/A |
| Year | Event | Index | Beginning | Documents | ||
|---|---|---|---|---|---|---|
| Deliberations | Technical Notes | Detailed Reports | ||||
| 2023 | Tariff Adjustment | 9.56% | 05/10/2023 | 1.395 | TN 13-2023 | N/A |
| 2023 | Tariff Review Extraordinary | 9.56% | 05/10/2023 | 1.394 | TN 12-2023 | N/A |
| 2022 | Tariff Adjustment | 12.80% | 05/10/2023 | 1.278 | TN 10-2022 | N/A |
| 2021 | Review of Tariff Structure | – | To be Defined | 1.150 | TN 17-2021 | DR-003/2021 |
| 2021 | Tariff Adjustment | 7.10% | 05/10/2021 | 1.150 | TN-16-2021 | DR-002/2021 |
| 2020 | Tariff Adjustment | 3.40% | 08/15/2020 | 1.021 | N/A | N/A |
| 2019 | Tariff Adjustment | 4.72% | 05/11/2019 | 859 | N/A | N/A |
| 2018 | 2ª part of Tariff Review | 3.50% | 06/09/2018 | 794 | TN-06-2018 | DR-005-2018 |
| 2017 | 1ª part of Tariff Review | 7.88% | 11/10/2017 | 753 | TN-04-2017 | DR-004-2017 |
Federal Laws
| Documents | Description |
|---|---|
| Federal Decree 10.710/2021 | Establishes a methodology for proving the economic and financial capacity of service providers |
| Federal Law 14.026/2020 | New Legal Framework for Basic Sanitation |
| Federal Law 13.303/2016 | Legal status of public companies, mixed-economy companies and their subsidiaries |
| Federal Law 11.445/2007 | National guidelines for basic sanitation |
| Federal Law 11.107/2005 | General rules for contracting public consortia |
| Federal Law 8.987/1995 | Regime for concession and permission for the provision of public services |
Amapá State Laws
| Documents | Description |
|---|---|
| State Law no 0625/2001 | CSA Creation |
São Paulo State Laws
| Documents | Description |
|---|---|
| Decree No 66.289/2021 | Municipalities’ Adhesion to URAEs |
| State Law 17.383/2021 | Creation of Regional Drinking Water Supply and Sanitation Service Units – URAEs |
| State Law 16.525/2017 | Corporate reorganization of Sabesp |
| State Complementary Law 1.025/2007 | São Paulo Public Services Regulatory Agency – ARSESP |
| State Complementary Law 11.454/2003 | Definition of the minimum percentage of voting shares held by the State |
| Tariff Decree 41.446/1996 | Regulation of the tariff system for services provided by SABESP |
| State Law 119/1973 | Constitution of the Basic Sanitation Company of the State of São Paulo – SABESP |