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||8,69%||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
Public Hearings and Consultations
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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.
Regulates Law 11,445/2007, which sets forth the national basic sanitation guidelines, among other provisions.
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.
It provides general rules for the contracting of public consortia, and makes other provisions.
Regulates Law 11,107/2005, which provides general rules for the contracting of public consortia.
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.