Brazilian Utility Wins Right to Raise Rates

23 Apr 2014 by Local Press Report

Sabesp (SBSP3), Latin America’s biggest water utility, climbed for a third straight day as regulators approved a bigger-than-estimated rate increase after delaying a decision for a year and a half. “The decision was very favorable for the company,” Henrique Kleine, the head equity analyst at brokerage Magliano SA in Sao Paulo, said in a telephone interview. “The market had been waiting for this for a long time.” The higher-than-expected increase incorporates compensation for delays in the process, according to a statement from the regulator, known as Arsesp. The regulator also gave the utility a numerical figure that will be used to calculate rate adjustments in 2015 and 2016...

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