SABESP Announces Extraordinary Tariff Increase

SAO PAULO, May 4, 2015 /PRNewswire/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), pursuant to CVM Instruction 358, of January 3, 2002, hereby informs its shareholders and the market in general that on this date (May 4, 2015) the Sao Paulo State Sanitation and Energy Regulatory Agency (ARSESP) published Resolutions 560 and 561.

Resolution 560 authorizes an increase of 7.7875% in the current tariffs, consisting of: 
a) the 2015 annual tariff adjustment of 7.1899%, based on the 8.1285% variation in the IPCA consumer price index between March 2014 and March 2015, less the efficiency factor (X factor) of 0.9386%; and

b) an additional adjustment of 0.5575%, due to the postponement of the application of the Regular Tariff Revision, authorized for May 2014 but only implemented in December of the same year, when it was partially offset.

Resolution 561 establishes an index of 6.9154% for SABESP's Extraordinary Tariff Revision applicable to the tariffs authorized on this date by ARSESP Resolution 560, cited above. 

The two tariff adjustments combined result in an index of 15.24%. The new tariff amounts are applicable 30 days after their publication by the Diario Oficial do Estado (Official Gazette).

The detailed report on the contributions, the Tariff Revision Technical Note, the Resolution 560 and Resolution 561 are available at ARSESP's website and SABESP website, Investor Relation section.

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SOURCE SABESP

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