Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Companhia de Saneamento Básico do Estado de São Paulo - SABESP after its major privatization shift, and honestly, the numbers tell a compelling story of mandated change. Forget the jargon; we're looking at a utility now tasked with executing a R$70 billion five-year universalization plan while managing a new ownership structure where the State of São Paulo Government holds just 18%. With core sanitation revenue already up 11.7% in Q1 2025, the real question is how they balance this massive capital expenditure with operational discipline-especially given the recent tariff jumps for commercial clients. Below, I've broken down the full nine blocks of the Companhia de Saneamento Básico do Estado de São Paulo - SABESP Business Model Canvas, mapping out exactly where the money flows and where the next big opportunity-or risk-lies for this essential service provider.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that underpin Companhia de Saneamento Básico do Estado de São Paulo - SABESP's operations post-privatization. These aren't just handshake agreements; they are concrete financial and governmental ties that shape its investment capacity and regulatory environment. Honestly, the shift from a state-controlled entity to one with a strategic private investor and major multilateral financing is the story here.

The key relationships Companhia de Saneamento Básico do Estado de São Paulo - SABESP relies on can be mapped out clearly. We'll use a table to show the main players and the hard numbers attached to those relationships right now.

The State of São Paulo Government remains a crucial partner, even after relinquishing majority control in the July 2024 privatization. Their continued involvement provides regulatory stability, which is vital for a long-term utility like Companhia de Saneamento Básico do Estado de São Paulo - SABESP.

The new ownership structure solidifies the government's role as a significant minority shareholder. Here are the key figures on that relationship:

• State of São Paulo Government ownership: reduced to 18% post-offering.
• The privatization process generated proceeds of BRL 14.7 billion.
• The goal is to anticipate universal sanitation coverage to 2029.

Equatorial Energia stepped in as the reference investor, a move designed to anchor market confidence and provide operational expertise. This partnership is key to driving the post-privatization investment agenda.

The specifics of Equatorial Energia's involvement are:

• Equatorial Energia acquired a 15% stake.
• The acquisition price was R$67 per share.
• This stake was secured as part of the privatization process.

Financing Companhia de Saneamento Básico do Estado de São Paulo - SABESP's massive capital expenditure plans requires deep pockets, and the International Finance Corporation (IFC) is a major source. You'll want to track this facility closely, as it's tied to performance metrics.

The total facility secured from the IFC is a landmark $784 million A/B loan, completed across tranches in late 2024 and May 2025. Here's the breakdown of that financing:

• Total A/B Loan: $784 million equivalent.
• The initial sustainability-linked loan (SLL) was approximately R$1.06 billion (about $184 million).
• The second tranche, closed in May 2025, raised $600 million equivalent.
• The proceeds fund the Integra Tietê program, focused on sewage and river cleanup.

The relationship with Municipal Governments is the operational backbone, as these entities grant the long-term concessions that guarantee Companhia de Saneamento Básico do Estado de São Paulo - SABESP's revenue base until 2060. The scale of this network is immense.

The scope of service delivery involves:

• Service provision across 375 municipalities in São Paulo State.
• The new concession agreement is effective until 2060.
• The company serves approximately 28.1 million people with clean water.

Finally, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is partnering with firms like Transcend and Arcadis for its digital transformation efforts. This points to a focus on using technology to drive efficiency, which is critical for meeting the new, accelerated universalization targets. Finance: draft 13-week cash view by Friday.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Key Activities

You're looking at the core engine of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) as it navigates its post-privatization investment phase. The key activities are all about massive infrastructure deployment, regulatory navigation, and process modernization to meet aggressive public service goals.

Water and sewage collection, treatment, and distribution

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is Latin America's largest water and waste management utility, and its daily operations are immense. The company provides water to approximately 28.1 million people and sewage services to about 24.9 million people across 375 municipalities in the state of São Paulo.

Operational metrics from mid-2025 show the scale of this activity:

• Water production reached 814 million m³ in the second quarter of 2025.
• Active water connections grew by 0.8% in 2Q25.
• Sewage connections saw a rise of 1.1% in 2Q25.
• Coverage within served municipalities stands at an average of 98% for treated water and 93% for sewage treatment.

Executing the R$70 billion five-year universalization plan

The company is executing a massive capital expenditure program aimed at achieving universal sanitation coverage by 2029. This plan is central to its current strategy. The total planned investment is approximately R$70 billion between 2024 and 2029.

Here's a look at the investment pace, which is accelerating significantly post-privatization:

This aggressive spending is funded by a strong operating cash flow, though management expects R$40 billion to R$50 billion of the total to be debt-funded.

Non-revenue water reduction (targeting 37% loss reduction by 2027)

A critical operational focus is minimizing water losses, which the company aims to reduce significantly. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) management reaffirmed its commitment to reduce water losses by 37% by 2027. Analysts estimate this reduction could save the company about R$873 million annually.

The company has specific programs driving this, such as the Água Legal Program, which saved over 50.5 million cubic meters per year of water through interventions, including replacing 207 km of the water network, as of early 2025.

Regulatory management and tariff adjustment negotiation

Managing the regulated environment is a key activity, especially following the 2024 privatization. The most recent major event was the approval of a tariff adjustment by ARSESP, the state regulator.

• Average user tariff increase authorized: 6.5%, effective January 1, 2026.
• This corresponds to a 10.6% increase in the equilibrium rate.
• A prior regulatory revision in August 2025 resulted in a negative impact of R$107 million (approximately US$21 million) booked in 3Q25 results.
• The revision increased the provision tied to the FAUSP fund from 3.22% to 3.74% of application revenue.

For context on the revenue base supporting these negotiations, the adjusted net revenue for 3Q25 was R$5.5 billion.

Digital transformation of planning and operational processes

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is formalizing a digital transformation program to support the 2029 universalization goal. This involves leveraging data intelligence in early-stage project development. In July 2025, the company signed an agreement with Transcend to use generative design software for planning and design across its 377 municipalities.

Key digital and modernization contracts include:

• A R$3.8 billion turnkey contract signed to replace 4.4 million meters with smart IoT-enabled units by 2029.
• The goal is to bring automation and data intelligence to the planning and design of water and wastewater treatment facilities.

This operational discipline is reflected in the 3Q25 adjusted EBITDA margin, which surged to 59%.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Key Resources

When you look at Companhia de Saneamento Básico do Estado de São Paulo - SABESP, its Key Resources are fundamentally tied to its geographic monopoly and massive physical assets. These aren't just line items; they are the barriers to entry that define the entire business.

The most critical resource is the Extensive water and sewage infrastructure network in São Paulo. This physical plant is what allows Companhia de Saneamento Básico do Estado de São Paulo - SABESP to serve over 9.5 million water connection points and 8.2 million sewage connections across the state. This scale is hard to replicate, honestly.

Next, you have the legal foundation supporting this infrastructure: the Long-term 40-year concession contracts with municipalities. While some older contracts were for 30 years, the regulatory environment post-2024 privatization and the new legal framework point toward securing assets for the long haul, with one agreement mentioned being effective until 2060. This longevity provides revenue visibility, which is gold for a capital-intensive utility.

Financially, Companhia de Saneamento Básico do Estado de São Paulo - SABESP maintains a strong liquidity position. As of the third quarter of 2025, the company held R$11.6 billion in cash, which covers more than four years of amortizations. While the prompt suggested a figure of $3.64 billion, the latest reported cash on hand is significantly higher in local currency, reflecting a strong balance sheet post-privatization maneuvers.

The human capital is also a major asset. The company relies on a Skilled technical and engineering workforce. While the outline suggested approximately 9,700 employees, more recent data from June 2025 showed 10,552 employees, though the company has also offered voluntary dismissal programs that saw roughly 4,000 people leave.

Finally, the physical control over raw materials is key: Proprietary land and water sources for catchment and treatment. This control over watersheds and treatment sites secures the input for its core service delivery.

Here's a quick look at some of these hard numbers:

The sheer scale of the physical assets dictates the capital requirements, but the long-term contracts provide the revenue stability to service that debt. You can see how the infrastructure and the contracts are inextricably linked as primary resources.

The company's operational capacity is also reflected in its recent output:

• Treated water production grew 4.4% year-over-year in Q3 2025.
• Active water connections grew 0.6% in Q3 2025.
• Sewage connections rose 1.1% in Q3 2025.
• The company is executing on a planned CAPEX of approximately R$6.3 billion brought forward from the second tariff cycle.

To be fair, the asset base is also a source of risk, as evidenced by the massive R$70 billion government-led initiative to enhance water infrastructure, which Companhia de Saneamento Básico do Estado de São Paulo - SABESP is a part of. That investment itself becomes a key resource for future service delivery.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Value Propositions

The core value proposition for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) centers on delivering essential, regulated services while aggressively pursuing mandated public goals following its privatization in July 2024.

Universal access to water and sanitation by 2029

• The privatization process accelerated the goal of universal sanitation coverage in the service areas to the year 2029, moving up the original target.
• Between 2024 and 2029, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) plans to invest around R$70 billion.

Reliable, essential public utility service for over 28 million people

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is Brazil's largest sanitation company, providing services across 375 municipalities in the state of São Paulo.

The company's Q2 2025 net income reached R$2.1 billion, up from R$1.2 billion in Q2 2024.

Improved operational efficiency and cost discipline post-privatization

The shift in ownership structure, with Equatorial Energia becoming the reference investor with a 15% stake, is intended to enforce private-sector discipline. This focus is already showing results in cost control:

• Total operating costs and expenses as a share of total revenue fell from 67.9% in 2019 to 55.94% in 2024.
• The 2024 voluntary termination plan resulted in 2039 enrollments, with the company cutting 11% of its workforce from that plan alone.
• The adjusted EBITDA margin reached 47.1% in the period ending September 2023, up from 46.1% in 2022.

Environmental commitment (e.g., Tietê River cleanup, methane-to-energy)

The investment plan between 2024 and 2029 of approximately R$70 billion is directed toward expanding water availability and security. Specific environmental improvements include:

• Sanitation efforts have resulted in collecting and treating 1.6 million cubic meters per year in the Guarapiranga Basin.
• The Água Legal Program provided water to 605 thousand people and sanitation services to 127 thousand people as of early 2025.

Inflation-protected, stable cash flows for investors via regulated tariffs

The regulated nature of the business provides a defensive characteristic, with an estimated long free cash flow duration of 12 years and a real Internal Rate of Return (IRR) of 11% under the new regulations.

Tariff adjustments are a key mechanism for cash flow stability, though initial post-privatization changes included reductions:

For the future, the regulator-approved equilibrium rate saw a 10.6% rise under ARSESP Resolution No. 1,748/2025, leading to an estimated average tariff increase for users of 6.5%, which incorporates IPCA inflation from July 2024 to October 2025. Finance: draft 13-week cash view by Friday.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Customer Relationships

The relationship Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) maintains with its diverse customer base is fundamentally shaped by its regulated status and the post-privatization strategic shift toward private-sector efficiency.

Regulated, long-term concession contracts with municipal governments

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) operates under long-term contracts that define the service relationship with the granting authorities. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) currently provides water and sewage services to 375 of the 645 municipalities in São Paulo state.

The core of this relationship for the majority of its operations is governed by the unified Concession Contract No. 01/2024 for the URAE 1 - Southeast unit, which covers 371 municipalities. This contract, effective following the company's privatization in 2024, extends its term until October 19, 2060.

Tariff adjustments are structured within this framework:

• The next Periodic Tariff Reviews are set for November 2029 and November 2034.
• Annual adjustments are applied throughout each cycle, incorporating factors like IPCA (inflation) and updates to the Regulatory Asset Base (RAB).
• The universal service coverage goal, a key obligation, is now targeted for 2029.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) also maintains service in Miguelópolis, Nova Guataporanga, Quintana, and Olímpia under separate program contracts and/or individual concession agreements.

Dedicated customer service centers and optimized call center operations

While specific operational metrics for call centers, such as Average Handling Time or First Contact Resolution rates for 2025, are not explicitly detailed in the latest reports, the strategic focus reflects an emphasis on the customer interface. The company's challenges for the new strategic cycle explicitly list Customer experience as an area requiring attention, alongside Commercial Efficiency. This signals an ongoing effort to optimize the transactional and support channels used by the millions of served units.

Social and vulnerable tariff programs for low-income residential users

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) actively manages a relationship with low-income users through subsidized rates. As of the third quarter of 2025, approximately 1.8 million units benefit from these subsidized rates. The financial impact of this social tariff program on the Q3 2025 results was approximately BRL 117 million.

The tariff structure for these users is kept low, even with recent overall rate adjustments. For instance, in the GT-O directorate, the social-tariff band for residential consumption of 0-10 m³ is set at R$ 11.14. Furthermore, a vulnerable residential bracket for the 11-20 m³ range in special regions is as low as R$ 1.06 (for water service). Qualification for these rates is tied to social registries, as low-income families in CadÚnico qualify.

The financial mechanism for these subsidies involves future adjustments; the mix impact from the second half of 2025 social rates is expected to be factored into the 2027 rate cycle.

Transactional relationship for commercial and industrial clients

The relationship with commercial and industrial clients is characterized by higher consumption tiers and a recent move to remove discounts. An initiative to remove discounts for larger clients, which began in late 2024, is now showing tangible gains in the 2025 results.

Following the ARSESP-approved tariff adjustment effective January 1, 2026, these categories face some of the sharpest increases, absorbing some of the rate rebalancing. The overall average tariff increase for users is 6.5%, though this is based on a 10.6% increase in the equilibrium rate.

Specific tariff points for the GT-O directorate as of January 1, 2026, include:

In special regions like Adamantina and Pirapozinho, the commercial special above-50-m³ band is set at R$ 18.41 for water and R$ 14.68 for sewage.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Channels

The Channels block for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is fundamentally tied to its massive, regulated physical infrastructure and its evolving digital interface with a large customer base across the State of São Paulo.

Physical network of pipes, reservoirs, and treatment plants

The physical delivery channel is the core of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)'s operation, representing a natural monopoly established through decades of capital expenditure. This network is responsible for delivering potable water and collecting/treating wastewater across its service territory.

As of late 2025, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) provides services to 375 municipalities in the State of São Paulo. The company is executing a massive investment plan, planning to spend around R$70 billion between 2024 and 2029 to secure water availability and expand services.

You can see the scale of the physical assets below:

Furthermore, specific projects are enhancing capacity; for instance, the expansion of the Barueri Wastewater Treatment Plant, Brazil's largest, is set to benefit approximately 10 million people. The company's Água Legal Program has already provided water to 605 thousand people and sanitation services to 127 thousand.

Direct billing and collection system to end-users

The revenue collection channel is managed through a direct relationship with end-users, which is increasingly digitized. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) serves over 9.5 million active water connection points as of Q3 2025.

The company is pushing digital payment adoption hard. In the 60 days leading up to August 12, 2025, its new WhatsApp channel alone collected R$96 million. This channel has handled over 3 million conversations with an average satisfaction rating of 4.52. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the first utility globally to process payments via WhatsApp using Meta's proprietary technology and the first in Brazil to operate with automatic, recurring PIX transactions.

The financial results reflect the efficiency of these channels; adjusted net revenue reached R$5.6 billion in Q2 2025, and cash flow from operations increased 79% to R$3.2 billion in the same period. Looking ahead, ARSESP authorized an average user tariff increase of 6.5% starting January 1, 2026, which Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) estimates equates to a 10.6% rise in its equilibrium rate.

Customer service centers and digital platforms for service requests

Customer interaction is managed through a mix of traditional and modern touchpoints. While the exact number of physical customer service centers isn't specified, the focus is clearly shifting to digital access for service requests, such as obtaining second copies of invoices and handling authentication.

The digital expansion includes:

• Adding support for facial authentication for service access.
• Integrating PIX and credit card payments directly into service interactions.
• Deploying conversational AI to handle customer requests.

The performance of these digital channels is strong; the WhatsApp channel alone managed 3 million conversations in a recent 60-day window. This digital push helps Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) deliver faster, more personalized interactions, which is crucial given that 88% of customers expect a seamless experience across digital and in-person interactions.

Municipal government liaison offices for contract management

Managing relationships with municipal governments is a key channel for securing and maintaining concession rights, especially following the company's privatization in July 2024. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) currently operates under agreements with 375 municipalities.

The company is actively engaged in expanding its reach through these governmental channels:

• The privatization process involved securing agreement from the 376 municipalities in its original service area to change contracts.
• The São Paulo state government is studying solutions for municipalities not yet served by Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS), with new concession contracts anticipated throughout 2026.
• The privatization of 133 municipalities was expected as early as the second half of 2025.

These liaisons are critical for realizing the R$70 billion investment plan, as infrastructure projects often require municipal sign-off and coordination for service expansion into new or underserved areas. Finance: draft 13-week cash view by Friday.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Customer Segments

You're looking at Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) right after its major privatization, and the customer base is the bedrock of its regulated revenue. Honestly, this segment breakdown shows where the immediate pricing power is being applied, and where the future growth is anchored.

The customer base is massive, serving a significant portion of Brazil's most economically active region. As of late 2025, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) operates in 375 municipalities in São Paulo, covering an estimated 68% of the urban population. To be fair, the sheer scale means managing diverse needs, from dense urban centers to smaller contract areas.

Here's a quick look at the key segments and the most recent financial/statistical markers you need to track:

Residential Consumers remain the largest segment by volume, but you see the regulatory body, ARSESP, has approved an average tariff adjustment of 6.5% set to take effect on January 1, 2026. This is the next big revenue driver for the regulated base. Also, note the social aspect:

• Units on subsidized rates reached 1.8 million as of Q3 2025.
• Water coverage in São Paulo state is high at 95.2%.
• Wastewater coverage in the state is 90.5%.

Commercial Clients and Industrial Clients felt the immediate pricing pressure earlier in the year. The Q1 2025 results showed sharp tariff increases for these groups, which is a key part of the post-privatization revenue reset. Specifically, commercial tariffs jumped 12.1% and industrial tariffs jumped 18.7% in that quarter. These higher-volume users are critical for immediate cash flow improvement, especially as Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) pushes capital expenditures (CapEx) hard.

Municipal Governments are contractual partners, which defines the long-term stability but also the regulatory risk. These are the entities with whom Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) holds concession contracts for service delivery across the 375 municipalities. The concentration risk is clear when you look at the top contracts:

• São Paulo municipality contract share of revenue: 43.5% (as of 1Q24).
• Guarulhos municipality contract share of revenue: 4.4% (as of 1Q24).

The company is actively working on commercial efficiency, with collection efficiency, excluding court order debt, reaching 101% in Q3 2025. Also, they installed over 1 million meters so far in 2025, which helps with revenue assurance across all segments.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) as of late 2025, and it's clear that capital deployment is the dominant feature, even as operational costs are being aggressively managed.

The commitment to infrastructure expansion means High Capital Expenditures (CapEx) are a major cost driver. For the first half of 2025 (1H 2025), the cumulative CapEx reached R$6.5 billion. This reflects a significant acceleration, as the second quarter (Q2 2025) alone saw CapEx total R$3.6 billion, which was a 26% acceleration versus the first quarter (Q1 2025) figures. This heavy investment is aimed squarely at meeting the universalization targets ahead of schedule.

On the flip side, the company is showing discipline in its day-to-day spending. Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) achieved an Operating expenses (OpEx) reduction of 26.7% in Q1 2025, which helped boost margins. This cost control is a key focus area for financial performance.

A significant portion of the OpEx management comes from workforce optimization following voluntary dismissal programs (VDP). You saw Personnel costs reduction reflected in a 7% reduction in headcount during Q1 2025 due to the VDP initiative. This headcount reduction helped offset other cost pressures.

However, financing the massive investment program comes with a cost. The company reported that net financial losses widened to R$638 million in Q1 2025, directly attributable to higher borrowing costs in the market.

The variable costs tied to service delivery remain a constant concern, especially given operational scale. The major components of variable OpEx include:

• Energy costs for water treatment and pumping.
• Chemical supplies for water and wastewater treatment.

While 2025-specific figures for these are still being finalized, the 2023 breakdown gives you a sense of where the money goes. Back then, expenditures on renewable electricity accounted for 9% of OPEX, while other fossil-fuelled electricity expenses were also present, alongside chemical supplies.

Here's a quick look at the key cost and investment metrics we have for the first half of 2025:

The focus is definitely on high CapEx for growth, balanced by strong OpEx discipline, but the debt servicing cost is a near-term headwind you need to watch.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) brings in cash as of late 2025. It's a mix of steady utility fees and project-based income, which is typical for a large, recently privatized utility.

The overall picture shows significant top-line growth leading up to the end of the year. The Total Trailing Twelve Months (TTM) Revenue as of Nov 2025 is $7.44 Billion USD. This reflects the impact of operational improvements and tariff adjustments implemented post-privatization.

The primary revenue drivers for the first quarter of 2025 showed strong momentum, especially from infrastructure execution and core service charges:

• Core Sanitation Revenue (up 11.7% in Q1 2025) reached R$5.84 billion.
• Construction Income from CapEx execution surged 93.7% to R$2.59 billion in Q1 2025.
• Revenue recovery from overruling large-client legacy discounts added R$893 million to revenue in Q1 2025.

The regulated revenue stream is the bedrock of Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)'s financial stability. This revenue is governed by the regulator, ARSESP, and is subject to periodic adjustments.

Regulated Tariff Revenue from residential, commercial, and industrial bills is shaped by the recent regulatory decisions. Specifically, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) estimates an average tariff adjustment of 6.5% for users, effective January 1, 2026, which corresponds to a 10.6% rise in the equilibrium rate. This adjustment factors in inflation (IPCA from Jul/24 to Oct/25) and tax changes.

Here's a look at the key Q1 2025 revenue components that make up the bulk of the core business:

The elimination of legacy discounts is a direct, one-time boost to the regulated revenue base, which is a key part of the new management's strategy to align profitability with service targets. This move freed up significant potential revenue that was previously locked in old contracts.