Companhia de Saneamento Básico do Estado de São Paulo - Sabesp ('Company' or 'Sabesp'), pursuant to Article 157, Paragraph 4 of Law 6404/76 and CVM Instruction No. 358/02, hereby announces to its shareholders and to the market in general that, on January 19, 2017, the Regulatory Agency of Sanitation and Energy of the State of São Paulo (ARSESP - Agência Reguladora de Saneamento e Energia do Estado de São Paulo) published the ARSESP Resolution No. 706, which deals with the beginning of the second ordinary tariff review of Sabesp and other measures, as follows:

'IT RESOLVES THAT:

Article 1 - Approves the beginning of the 2nd Tariff Review of SABESP and discloses the timeline connected to its initial stage (Appendix).

Article 2 - The Preliminary Maximum Average Tariff (Preliminary Po) will be authorized up until June 10, 2017, and applied pursuant to Article 39 of Law No. 11445/2007, subject to the conclusion of the activities to be carried out with the support of the advisory firm hired;

Sole Paragraph - The Final Maximum Average Tariff (Final Po) will be disclosed and authorized up until April 10, 2018.

Article 3 - The same methodology used and approved for the 1st Ordinary Tariff Review of SABESP will be applied in the initial stage of the tariff review, as established in the Final Technical Note No. RTS/01/2012 - Detailed Methodology for the Tariff Review Process of SABESP, available on ARSESP's website:www.arsesp.sp.gov.br

Article 4 - The differences in the revenues ascertained from the authorized tariff values on June 10, 2017 (Preliminary Po) and the tariff values ascertained after the conclusion of the tariff review (Final Po) will be properly offset, and employed to the public service tariffs for water supply and sanitation, at the time of the tariff adjustment, which will take place on April 11, 2018.'

The full text of Resolution No. 706 with the initial timeline for the 2nd Tariff Review can be found on ARSESP's and Sabesp's website.

São Paulo, January 19, 2017

Edison Airoldi
Technology, Projects and Environment Officer
acting as the Chief Financial Officer and Investor Relations Officer

Access the Arsesp Resolution 706

SABESP - Companhia de Saneamento Básico do Estado de São Paulo published this content on 20 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 January 2017 02:43:00 UTC.

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