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Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

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COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP

 

PUBLICLY-HELD COMPANY

Corporate Taxpayer’s ID (CNPJ) No. 43.776.517/0001-80

 

MATERIAL FACT

SECOND ORDINARY TARIFF REVISION

 

Companhia de Saneamento Básico do Estado de São Paulo – Sabesp (“Company” or “Sabesp”), pursuant to the provisions of Article 157, Paragraph 4 of Law 6.404/76 and the provisions of CVM Instruction 358/02, hereby informs its shareholders and the market in general that, on May 24, 2018, given the final result of Sabesp’s 2nd Ordinary Tariff Revision, the Company filed at the Regulatory Agency for Sanitation and Energy of the State of São Paulo (ARSESP - Agência Reguladora de Saneamento e Energia do Estado de São Paulo ): i) a reconsideration request; ii) a clarification and revision request.

The reconsideration request consists of an administrative appeal, addressed to ARSESP’s CEO, requesting the revision of the regulatory decision substantiated by ARSESP Resolution nº 794/2018 with the purpose of applying the due compensatory adjustment in the revenue, cost of electricity and investments executed in the first cycle.

The clarification and revision request: i) explanation of the reasons that led to a significant reduction in the final forecast of OPEX for the 2017-2020 period; ii) a revision of the calculation of Factor X, of the compensatory adjustment for the delay in the application of the 2nd Ordinary Tariff Revision and the calculation of the financial component related to municipal funds.

 

The documents sent to the ARSESP, today, can be found on Sabesp’s website, in the area of Investor Relations.  

 

São Paulo, May 24, 2018.

Rui de Britto Álvares Affonso

Chief Financial Officer and Investor Relations Officer

 

 

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SIGNATURE   

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.

Date: May 25, 2018

 

Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By:	/s/   Rui de Britto Álvares Affonso
	Name: Rui de Britto Álvares Affonso Title: Chief Financial Officer and Investor Relations Officer

 

 

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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