Service Regulation

The public water supply and sewage services provided by the Company are regulated by the Minas Gerais State Water and Sewage Services Regulatory Agency – ARSAE-MG. This Agency was created by State Law 18,309/2009, in compliance with the attributions set forth by Federal Law 11,445/2007, which establishes the national guidelines for basic sanitation.

The services provided are remunerated in the form of tariffs, which are the same throughout the State. These tariffs are differentiated by categories of customers (social, residential, public, industrial and commercial), consisting of a Fixed Rate and a Variable Rate, charged according to consumption ranges, depending on the volume measured in m³.

According to Federal Law 11.445/2007, tariff revisions and/or adjustments must be regulated, audited and authorized by regulatory agency, and in the case of Minas Gerais, ARSAE-MG and its calculation must ensure the concessionaire’s economic and financial balance and the preservation of the social aspects of the services provided.

The tariffs are adjusted annually and revised every 4 (four) years. The tariff adjustment aims to offset the inflationary effects on the provider’s costs over a given period. The periodic tariff review consists of the reassessment of service and maket conditions, with the establishment of efficiency-induction tariff mechanisms, and quality goals for service provision and expansion. At the time of the review, the definition of the Required Revenue, which represents the sum of operating costs, capital, unrecoverable revenues (defaults), taxes, among others, represents the costs required to provide water and sewage services.

The chart below shows information on Tariff Adjustments and Revision, from 2010:

YEAR % OF TARIFF ADJUSTMENT EVENT BEGINNING RESOLUTION TECHNICAL NOTES
2020 3,04% Tarif Adjustment 01 November 2020 Resolution nr 141/2020* GRT 10/2020
2019 8,38% Tarif Adjustment 01 August 2019 Resolution nr 127/2019* GRT 07/2019
2018 4,31% Tarif Adjustment 01 August 2019 Resolution nr 111/2018 GRT 09/2018
2017 8,70% 2nd Step Tariff Revision 30 July 2017 Resolution nr 96/2017 CRFEF 69/2017
2016 13,90% 1st Step Tariff Revision 13 May 2016 Resolution nr 82/2016 CRFEF 30/2016
2015 15,04% Tariff Adjustment 13 May 2015 Resolution nr 64/2015 CRFEF 02/2015
2014 6,18% Tariff Adjustment 13 May 2014 Resolution nr 49/2014 CRFEF 02/2014
2013 5,25% Tariff Adjustment 13 May 2013 Resolution nr 35/2013 CRFEF 004/2013
2012 4,35% Tariff Adjustment 13 May 2012 Resolution nr 20/2012 NT 005/2012
2011 7,02% Tariff Adjustment 23 April 2011 Resolution nr 04/2011 NT 004/2011
2010 3,96% Tariff Adjustment 01 March 2010 Resolution nr 001/2010 NT 003/2010

Minas Gerais State Water and Sewage Services Regulatory Agency – ARSAE MG

Website

www.arsae.mg.gov.br

 

Public Hearings and Consultations

Click here to view Public Hearings

Click here to view Public Consultations

 

Legislation

Federal Legislation

Federal Law 11,445/2007 (click here to view full text – Portuguese only)

It establishes national guidelines for basic sanitation; amends Laws 6,766/1979, 8,036/1990, 8,666/1993, 8,987/1995; it repeals Law 6,528/1978, and makes other provisions.

Federal Decree 7,217/2010 (click here to view full text – Portuguese only)

Regulates Law 11,445/2007, which sets forth the national basic sanitation guidelines, among other provisions.

Federal Law 8,987/1995 (click here to view full text – Portuguese only)

It rules on concession and permit regimes for the provision of public services set forth in Article 175 of the Federal Constitution, and makes other provisions.

Federal Law 11,107/2005 (click here to view full text – Portuguese only)

It provides general rules for the contracting of public consortia, and makes other provisions.

Federal Decree 6,017/2007 (click here to view full text – Portuguese only)

Regulates Law 11,107/2005, which provides general rules for the contracting of public consortia.

 

State Legislation

State Law 18,309/2009 (click here to view full text – Portuguese only)

Sets forth rules for water supply and sewage services, creates the Minas Gerais State Water and Sewage Services Regulatory Agency – ARSAE-MG, and provides other measures.

State Decree 45,871/2011 (click here to view full text – Portuguese only)
Contains the Charter of the Minas Gerais State Water and Sewage Services Regulatory Agency – ARSAE-MG, and provides other measures.