📋

Key Facts

  • ✓ Water tariffs in São Paulo increased by 6.11% on January 1, 2026.
  • ✓ The adjustment was authorized by the Agência Reguladora de Serviços Públicos do Estado de São Paulo (Arsesp).
  • ✓ For residential consumption of 11m³ to 20m³, the cost rose from R$ 6.01 to R$ 6.40 per m³.
  • ✓ The increase corresponds to inflation correction over the 16 months since privatization (July 2024 to October 2025).
  • ✓ The government states the hike is 15% lower than the index projected for a state-owned company.

Quick Summary

The new year brought a 6.11% increase to water bills for Sabesp customers in São Paulo, effective January 1, 2026. This adjustment marks the first tariff revision following the privatization of the water utility.

The increase was defined by the Agência Reguladora de Serviços Públicos do Estado de São Paulo (Arsesp) on December 1. The state government, led by Governor Tarcísio de Freitas, asserts that the hike strictly reflects accumulated inflation over a 16-month reference period established during the privatization process.

Tariff Details and New Pricing

The basic water tariff underwent a reajust of 6.11% starting the first day of 2026. This change affects the billing for millions of residents in the state of São Paulo.

For a standard residential account consuming between 11m³ and 20m³, the cost structure has shifted. Specifically, the price for one thousand liters of water moved from R$ 6.01 to R$ 6.40 per m³. The government emphasizes that this adjustment represents only the inflationary replacement and constitutes no real increase for the consumer.

"A deliberação dos novos valores, feita pela Agência Reguladora de Serviços Públicos do Estado de São Paulo (Arsesp), prevê somente a reposição inflacionária do IPCA acumulado entre julho de 2024 e outubro de 2025, de 6,11%, sem aumento real para o consumidor."

— Gestão Tarcísio de Freitas

Privatization Context and Contractual Terms

The tariff adjustment is directly linked to the privatization of Sabesp, which occurred in July 2024. Prior to the sale, Governor Tarcísio de Freitas stated that water rates would not increase for the population. During the privatization process, he clarified that charges would not exceed a specific reference index projected in the contract.

This index simulates what the tariff would have been had the company remained state-owned. The administration notes that the current 6.11% figure is actually 15% lower than that projected index.

The calculation method used for this specific reajustment is unique to the transition period:

  • It covers the 16 months following the desestatization (July 2024 to October 2025).
  • It is based on the accumulated IPCA (Consumer Price Index).
  • Future cycles will revert to a standard 12-month calculation period.

Regulatory Approval and Future Models

The Agência Reguladora de Serviços Públicos do Estado de São Paulo (Arsesp) officially authorized the new values on December 1. The regulatory body is responsible for ensuring that the pricing follows the contractual obligations set during the privatization.

The government also highlighted the introduction of a new concept in the tariff model: the tarifa de equilíbrio (equilibrium tariff). This mechanism is designed to absorb investments that are effectively performed and audited by Arsesp, ensuring that infrastructure improvements are reflected in the financial structure of the utility.

"A recomposição tarifária seguiu o previsto no contrato, levando-se em conta a inflação acumulada nos 16 meses iniciais desde a desestatização, em julho de 2024."

— Governo Paulista