By Brazil Stock Guide – São Paulo’s utilities regulator validated the R$88 billion Regulatory Asset Base of Sabesp (B3: SBSP3) for 2024, establishing the capital base that will guide the company’s 2026 tariff reset. The ruling brings clarity to the first full tariff review since privatization.
ARSESP confirmed R$78.5 billion for 2023 and R$88 billion for 2024 after applying revaluations, glosas, reclassifications, construction margins, inflation adjustments and asset write-offs. The decision also includes R$3.3 billion in regulatory depreciation for the period.
Tariff Implications
The RAB defines how much invested capital Sabesp can remunerate and shapes its required revenue for the 2026 cycle. A higher RAB increases tariff pressure, while the adjustments applied by the regulator limit pass-through of non-recognized costs. Consumers will see the impact only in 2026, after the December 2025 tariff review.
What Comes Next
The validation strengthens predictability for investors and for the company as it enters its first years under private ownership. ARSESP’s December review will set the final tariff percentage and complete the transition to the new regulatory model.
Analysts tracking the regulatory model estimate that the 2026 tariff reset will likely fall in the 8% to 14% range, with most projections clustering near 11% to 12%, depending on productivity factors and ARSESP’s final parameters in the December 2025 review.
Leave a Reply