The São Paulo utility regulator penalised the company over operational failures and unmet targets.
The São Paulo State Public Services Regulatory Agency, known as Arsesp, imposed nearly BRL 30 million in fines on water utility Sabesp. The decisions were published on Wednesday 16 September 2026 in the state official gazette.
The penalties total BRL 29,915,304.81 across two separate cases. The larger fine of BRL 22,992,610.60 follows a January 2025 inspection of operational conditions at nine sewage pumping stations in the city of São Paulo. Arsesp upheld nine infractions and applied a 30% aggravating factor in four of the cases due to irreversible damages. The second fine, of BRL 6,922,694.21, stems from five infractions regarding unfulfilled contractual targets for water supply, sewage collection, and treatment in Ferraz de Vasconcelos, based on non-conformities logged since 2018 and 2020.
The amounts must be paid to the São Paulo State Sanitation Universalisation Support Fund within 30 days. The rulings remain subject to appeal before the board of directors of Arsesp.
Sabesp stated that the decisions represent first-instance administrative rulings and that it is evaluating appropriate administrative measures. The company noted that all nine pumping stations are operating normally. It also stressed that the penalties regarding Ferraz de Vasconcelos date back to metrics established before its privatisation in July 2024 under governor Tarcísio de Freitas, while its new concession contract targets universal service by 2029.
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