THE CHALLENGE OF PRIVATIZATIONS

The effects of privatizations, concessions and partnerships with the private sector on the population of São Paulo are increasingly at the center of attention, especially after the crisis involving Enel, which exposed the drama experienced by residents of various regions faced with successive blackouts. Now, the focus also turns to the consequences of the privatization of Sabesp and the new round of projects that the São Paulo government intends to take forward.

The discussion no longer only concerns the ideological field. Whether it is a public, private company, concessionaire or public-private partnership, the central point is different: in addition to quality in provision, essential services need, above all, to function. Energy, water, sewage, transport, highways and crossings are not common products. When they fail, the people who feel it first are the people who pay the bill every month.

Update on the Enel case: the final stretch of the defense period The case of the Enel concessionaire enters a decisive phase within the administrative expiry process opened by Aneel, which could lead to the end of the distributor's concession in São Paulo. This is because there are only five days left until the company's defense period ends.

Continue lendo

27/05/2026

Income Tax 2026: deadline ends this week and live program answers questions

Income Tax 2026: deadline ends this week and live program answers questions By next Friday, the Federal Revenue expect...

27/05/2026

New York and New Jersey open investigation against FIFA over sale of World Cup tickets at exorbitant prices

Worker installs new pitch at MetLife Stadium, in New Jersey, stadium that will host 2026 World Cup games, including th...

27/05/2026

Wall Street trades mixed amid uncertainty over US-Iran deal

Wall Street's main stock indices operate without a single direction this Wednesday (27). The White House recently refu...

The agency's board decided to initiate the process on April 7, after concluding that serious flaws in service provision persisted, including long emergency response times, an increase in prolonged outages and planning and contingency problems in the face of severe weather events. The notification was received by the company on April 13, officially starting the 30-day period for manifestation, which ends on May 13.

Enel has contested the process and claims that there were methodological errors, material flaws in the agency's analysis and limitations on the right to defense. The company also asked for additional time and tried to suspend the effects of Aneel's decision. To date, however, the agency has maintained the original schedule and the appeal presented by the distributor has not received suspensive effect.

This detail is important because it keeps the process moving forward normally while the defense is prepared. After presenting the company's arguments, Aneel will still need to technically evaluate the response before deciding whether or not to recommend the expiration of the concession to the Ministry of Mines and Energy, responsible for the final decision.

Top Cifras

Toque agora.

1 A Taste Of Honey Vince Guaraldi

2 Play With Fire Sam Tinnesz

3 As Cancoes Que Voce Fez Pra Mim Roberto Carlos

4 Its Only Love Stevie nicks

In practice, the final stretch of the deadline turns the next few days into one of the most decisive moments of the crisis involving the distributor in São Paulo. In addition to the regulatory impact, the process also began to have political, economic and symbolic weight, especially amid the debate on the quality of essential public services and inspection of concessionaires.

Sabesp: from sale to delivery testThe privatization of Sabesp was completed in July 2024. According to the company's Investor Relations area, the secondary public offering was concluded on July 22 of that year and reduced the State of São Paulo's stake in the company to 18%. Arsesp records that the new concession contract came into force on July 23, 2024, with a term until October 19, 2060.

The model had Equatorial as a strategic investor, with a priority block of 15% of the shares. Another 17% was offered to the market through bookbuilding. In the official justification, the São Paulo government stated that privatization sought to increase investments, bring forward goals for universal sanitation for 2029 and reduce tariffs, especially for the most vulnerable population.

Almost two years after the sale, the question is no longer just whether the privatization was successful in the financial market. The real test is at the end: water quality, continuity of supply, customer service, promised works, tariffs, preventive maintenance and responsiveness when the system comes under pressure.

The water bill in 2026If privatization sought, among other objectives, to reduce tariffs, what can be seen in 2026 is that one of the first effects felt by the consumer was precisely the tariff adjustment.

Arsesp's Technical Note on Sabesp's first adjustment in URAE-1 Sudeste informs that the update came into effect in January. The calculation considered the IPCA variation between June 2024 and October 2025, resulting in an index of 6.1106% applied to the tariff tables.

For defenders of privatization, it is part of a regulated contract and a new phase of investments. For critics, the increase rekindles concerns about the balance between remuneration of private capital, distribution of profits, quality of service and reasonable tariffs.

This point gains strength because the documentation of the privatization process itself predicted an increasing dividend policy: mandatory minimum in 2024 and 2025, up to 50% payout in 2026 and 2027, up to 75% between 2028 and 2030 and up to 100% from 2030 onwards, also subject to the so-called universalization factor.

Complaints and consumer perceptionThe evolution of the service is also beginning to be measured by complaints. Procon-SP published the 2025 Register of Substantiated Complaints, a report that brings together complaints completed and handled by the Procon-SP Foundation and 126 partnered municipal Procons.

According to a survey published by Metrópoles based on data from Procon-SP, Sabesp led the ranking of substantiated complaints in 2025, with 6,879 records. Of the total, 2,137 were answered and 4,742 were not answered, which represents around 69% of unresolved demands in that registry. The report also recorded that the company attributed part of the performance to specific difficulties following a hacker attack that occurred in October 2024 and said it had adopted measures to reinforce service.

This data needs to be treated with care. Complaints alone do not explain the entire quality of a concession, but they are an important thermometer. When the consumer is unable to resolve charges, service failures or service problems through the company's own channels, wear and tear becomes a regulatory, political and social issue.

Promised investment and necessary supervisionThe central argument in favor of Sabesp's privatization was the ability to accelerate investments and anticipate universalization. Official documents of the process speak of a plan of approximately R$70 billion in investments for universalization until 2029, with regulatory mechanisms and funds aimed at controlling tariff impacts.

The challenge now is to prove, year after year, whether these investments leave the drawing board and reach neighborhoods, outskirts, rural areas, smaller municipalities and points where sanitation is still insufficient. In an essential public service, the promise of investment only becomes a benefit when it appears as a connection made, sewage collected, leaks resolved, regular water, understandable tariffs and efficient service.

New concessions on the radarWhile the effects of Sabesp continue to be observed, the São Paulo government maintains a broad portfolio of concessions and PPPs. The São Paulo State Investment Partnership Program reports that it has 31 qualified projects, 50 scheduled auctions - more than 40 by 2026 - and estimated investment of more than R$550 billion in areas such as transport, sanitation, energy, housing and schools.

In sanitation, UniversalizaSP appears as one of the most relevant fronts. The program was put up for public consultation in April 2026 and plans to serve 146 municipalities that are not part of URAE-1, with financial turnover estimated at R$29 billion by 2033 and R$100 billion by 2060. The project seeks to expand treated water, sewage collection, reduce water losses and water security in different regions of the state.

In terms of mobility, Lot ABC Guarulhos brings together Line 10-Turquoise and the future Line 14-Ônix. The project, qualified in the PPI-SP, provides for administration by the private sector, an estimated investment of R$19 billion, 80 kilometers in length, a term of 30 years and a public-private partnership model. The official projection speaks of demand of approximately 777 thousand passengers per day, with new stations, renovations and adjustments.

In highways, the Rota Mogiana concession was auctioned in February 2026 at B3. The winning consortium will be responsible for 520 kilometers of highways for 30 years, with investments estimated at R$9.4 billion. The São Paulo government itself reports that its road lots granted or in the auction phase project more than R$51 billion in investments over the course of the contracts.

There are also projects in areas such as water crossings, parks and sports equipment. The São Paulo Water Crossing system was auctioned in November 2025 and foresees R$2.5 billion in investments over 20 years. The Ibirapuera Complex and Vila Olímpica Mário Covas entered public consultation in 2026, with a proposal for a concession of use aimed at modernization, maintenance and expansion of access for the population.

Concessions are not a blank checkThe expansion of concessions can bring investment, technology, efficiency and execution capacity. But it can also generate risks if it is accompanied by weak supervision, poorly designed contracts, opaque goals or poor service. The Enel case showed that, when regulation arrives late, citizens have already spent days in the dark. Sabesp's experience will now be observed through the water bill, the works and the quality of service.

The essential point is that public concession cannot be confused with transfer of responsibility. Public authorities continue to have the duty to plan, monitor, punish failures, demand investments and protect users. The private company, in turn, does not just inherit a profitable asset: it inherits a public obligation.

The consumer at the centerIn the end, the debate on privatization needs to move away from the abstract dispute and look at real life. The population doesn't just want to know whether the model is state-owned, private or mixed. She wants water to arrive, electricity to work, reliable transportation, safe roads, fair bills and service that resolves issues.

This is the warning that should guide managers, regulators and concessionaires. Essential public services cannot be treated simply as a business opportunity, political showcase or financial asset. They are part of the everyday lives of millions of people.

When management fails, the account does not just appear on the balance sheet. It appears in the business that closes, in the food that spoils, in the house without water, in the worker without transportation, in the consumer without response and in the family that pays for a service they did not receive.

The Enel case, the effects of the privatization of Sabesp and the new round of concessions in São Paulo place the topic under increasing attention and reinforce that the discussion goes far beyond promises. It is necessary to deliver quality - because, in the end, it is always the population that pays the bill and feels the consequences of poor management.

Source: Antena 1