SÃO PAULO, March 24, 2016 /PRNewswire/ -- Companhia de Saneamento Básico do Estado de São 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 March 24, 2016:
a) On December 22, 2015, via Official Letter P-0739, SABESP had asked ARSESP to extend the Water Consumption Reduction Incentive Program and the Contingency Tariff until the end of 2016 or until the water situation became more predictable;
b) The main investments to increase water security in the São Paulo Metropolitan Region are already operational or in the works execution stage; and
c) The current water situation permits greater predictability of reservoirs conditions.
1) The Board of Directors, pursuant to item VI of Article 13 of the Bylaws, and having heard the Board of Executive Officers, authorized the Company to request ARSESP the cancellation, for consumption readings beginning May 1, 2016, the Water Consumption Reduction Incentive Program, by means of granting a discount bonus to the water and sewage bill - Bonus, and the Contingency Tariff, applied to the water bill.
2) The Company has filed the request to ARSESP for the cancellation of the Water Consumption Reduction Incentive Program and the Contingency Tariff.
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