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Arsesp Authorization Allows Sabesp to Apply 6.11% Rate Increase Starting January 1, 2026 While the Company Talks About an Average Increase of 6.5% With Residential Bills Up to R$ 1.07 More Expensive Per Cubic Meter Throughout the State After the 2024 Privatization.
Privatized in July 2024, Sabesp received authorization from Arsesp to apply a 6.11% increase in water and sewage rates starting January 1, 2026, impacting residential consumers throughout the state of São Paulo. The decision was formalized by the state regulatory agency based on the rules defined in the company’s privatization contract.
According to the UOL portal, the increase corresponds to the variation of the accumulated IPCA since privatization, 16 months ago, and will make the residential bill R$ 0.39 to R$ 1.07 more expensive per cubic meter in 2026, in the first tariff adjustment since the privatization of the São Paulo water and sewage company.
How the Water Bill Will Be in 2026
According to Arsesp, the 6.11% adjustment in Sabesp’s rates will be applied starting January 1, 2026, updating the charged rates for water and sewage throughout the state.
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For residential customers, the bill will be between R$ 0.39 and R$ 1.07 more expensive per cubic meter, depending on the consumption tier.
In the residential category, rates currently ranging from R$ 6.01 to R$ 16.50 per cubic meter will rise to a range between R$ 6.40 and R$ 17.57 per cubic meter, according to the volume consumed.
A customer consuming between 21 and 50 cubic meters per month will see the water rate increase from R$ 14.98 to R$ 15.95 per cubic meter.
Adjustment Below Contractual Ceiling
Arsesp reported that the authorized increase takes into account the inflation measured by the IPCA since Sabesp’s privatization, 16 months ago, as provided in the privatization contract.
According to the agency, the 6.11% figure is about 15% below the maximum limit stipulated in the contract for this first adjustment.
This is the first increase in Sabesp’s rates since the company was privatized in July 2024.
The update will take effect in 2026 for users served by the company in the state of São Paulo, respecting the different tiers and categories of consumption defined in the regulation.
Company Talks About an Average Increase of 6.5%
After the publication of Deliberation 1,749 by Arsesp in the Official Gazette of the State of São Paulo, Sabesp informed the market that it is authorized to apply an average increase of 6.5% in the rates charged to users starting January 1, 2026.
In the statement, the company highlights that the adjustment will apply to the currently prevailing rates.
However, Sabesp did not elaborate on the difference between the 6.11% rate indicated by Arsesp and the average increase of 6.5% mentioned to the market.
The company stated that it will work throughout the day to clarify the main items of the tariff adjustment and that it will keep investors and consumers informed about any developments related to the new pricing structure.
What Changes for Sabesp Customers
In practice, the final impact on each family’s bill will depend on the volume of water consumed per month and the category in which the connection is classified.
The higher the consumption per cubic meter, the greater the absolute increase in the bill, even with the same percentage increase.
Sabesp will continue to be responsible for supplying water and collecting sewage in the state, now under private control, following the rules defined in the privatization contract and in the deliberations of Arsesp.
Consumers and investors are now awaiting the clarifications promised by the company regarding the composition of the increase and the difference between the figures presented by the regulatory agency and the company itself.
Do you think the adjustment authorized for Sabesp in 2026 is justified or should it have been smaller to relieve the burden of the water bill on family budgets?
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