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 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. It is worth mentioning that there is no difference in tariffs between municipalities.
According to Federal Law 11.445/2007, tariff reviews and/or adjustments must be regulated, audited and authorized by regulatory agency, and in the case of Minas Gerais, ARSAE-MG. The calculation of tariffs, which must ensure the economic and financial balance of the concessionaire and the preservation of the social aspects of the services provided, is based on the incentive regulation regime, which provides for the remuneration of investments considered prudent and the incentive to maintain efficient operating costs.
The tariffs are adjusted annually and revised every 4 (four) years. The tariff adjustment, whose calculation is regulated through Technical Note ARSAE-MG CRE Nº. 15/2021, aims to offset the inflationary effects on the provider’s costs over a given period, as well as sharing productivity gains with users and encouraging improvements in the quality of services through Factor X (Factors of Productivity, Quality and Incentive to Control Losses), noting also the neutrality of the price variation of non-manageable items. It should be noted that expenses with fuel and lubricants, telecommunications, treatment materials, electricity and taxes and other obligations are considered non-manageable costs. The other items are considered manageable.
The periodic tariff review consists of the reassessment of service and market conditions, addressing, among other points, efficient costs and expenses, sunk revenues (delinquency), remuneration of investments, depreciation of investments, efficiency induction mechanisms, expansion and quality of services and the definition of the tariff structure.
Further information on the rules applicable to the setting of the Company’s tariffs can be found in item 1.10.c of the Reference Form.
Below is information about the Tariff Adjustments/Reviews, as of 2010:
| MONTH OF APPROVAL | AVERAGE TARIFF IMPACT | EVENT | BEGINNING | RESOLUTION | TECHNICAL NOTES |
| 11/2023 | +4.21% | Tarif Adjustment | 01 January 2024 | Resolution nr 185/2023 | GRT nº 06/2023 |
| 11/2022 | +15.70% | Tarif Adjustment | 01 January 2023 | Resolution nr 173/2022 | GRT nº 01/2022 |
| 06/2021 | -1.52 | 2nd Tariff Review | 01 August 2021 | Resolution nr 154/2021 | CRE 14/2021 |
| 06/2020 | +3.04% | Tarif Adjustment | 01 November 2020 | Resolution nr 141/2020* | GRT 10/2020 |
| 06/2019 | +8.38% | Tarif Adjustment | 01 August 2019 | Resolution nr 127/2019* | GRT 07/2019 |
| 06/2018 | +4.31% | Tarif Adjustment | 01 August 2019 | Resolution nr 111/2018 | GRT 09/2018 |
| 06/2017 | +8.69% | 2nd Step Tariff Review | 30 July 2017 | Resolution nr 96/2017 | CRFEF 69/2017 |
| 04/2016 | +13.90% | 1st Step Tariff Review | 13 May 2016 | Resolution nr 82/2016 | CRFEF 30/2016 |
| 04/2015 | +15.04% | Tariff Adjustment | 13 May 2015 | Resolution nr 64/2015 | CRFEF 02/2015 |
| 04/2014 | +6.18% | Tariff Adjustment | 13 May 2014 | Resolution nr 49/2014 | CRFEF 02/2014 |
| 04/2013 | +5.25% | Tariff Adjustment | 13 May 2013 | Resolution nr 35/2013 | CRFEF 004/2013 |
| 04/2012 | +4.34% | Tariff Adjustment | 13 May 2012 | Resolution nr 20/2012 | NT 005/2012 |
| 03/2011 | +7.02% | Tariff Adjustment | 23 April 2011 | Resolution nr 04/2011 | NT 004/2011 |
| 01/2010 | +3.96% | Tariff Adjustment | 01 March 2010 | Resolution nr 001/2010 | NT 003/2010 |
*The application of this adjustment was postponed for 90 (ninety) days as of 08/01/2020.
Public Hearings and Consultations
Arsae-MG holds Public Hearings and Consultations in order to obtain greater technical and social support for its decision-making process.
Click here to view Public Hearings
Click here to view Public Consultations
Legislation
Federal Legislation
Federal Law 14,026/2020*: updates the legal framework for basic sanitation and amends Law nr. 11,445/2007, to improve the structural conditions of basic sanitation in the country.
Federal Law 11,445/2007*: 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*: regulates Law 11,445/2007, which sets forth the national basic sanitation guidelines, among other provisions.
Federal Law 11,107/2005*: provides general rules for the contracting of public consortia, and makes other provisions.
Federal Decree 6,017/2007*: regulates Law 11,107/2005, which provides general rules for the contracting of public consortia.
Federal Law 8,987/1995*: 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.
State Legislation
State Law 18,309/2009*: 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 47,884/2020*: contains the charter of the Minas Gerais State Water and Sewage Services Regulatory Agency – ARSAE-MG.
* Portuguese Only