SAO PAULO, Dec. 23, 2015 /PRNewswire/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), pursuant to CVM Instruction 358 of January 3, 2002, and amendments thereto, hereby informs its shareholders and the market in general that, on December 22, 2015, the Board of Directors, in accordance with item 4 of Article 13 of the Bylaws, having the Executive Board been heard, authorized the Company to request from ARSESP to ratify the continuity and updating of the Water Consumption Reduction Incentive Program through the Bonus grant to the Water and Sewage Bill, as well as the continuity of the Contingency Tariff:
A) Extension of the Water Consumption Reduction Incentive Program through the Bonus grant to the Water and Sewage Bill (Bonus) until the end of 2016 or until there is more predictability regarding the water situation, with the updating of the reference consumption figure (the average consumption of each consumer in the period between February/2013 and January/2014), under the following terms:
1. The updated reference consumption of each customer will be obtained by multiplying the initial reference consumption by 0.78.
2. The updating factor of 0.78 is the result of dividing the total consumption of the population served by Sabesp in the Metropolitan Region of Sao Paulo in the recent period (October/2014 to September/2015) by the corresponding consumption in the initial period (February/2013 to January/2014).
3. This update will be applied to consumptions measured as of February 1, 2016.
4. Other rules and conditions of this program will be maintained, including the bonus ranges of 10%, 20% and 30%.
B) Contingency Tariff:
Contingency tariff extension until the end of 2016 or until there is more predictability regarding the water situation, with the maintenance of the current rules and conditions, including the bonus ranges and reference consumption.