SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For August 19, 2004

(Commission File No. 1-31317)
 
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 

Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Regristrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 

COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP

A PUBLICLY-TRADED COMPANY
CNPJ # 43.776.517/0001-80

RELEVANT NOTICE

TARIFF ADJUSTMENT

As required by CVM Instruction #358, dated January 3, 2002, COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP hereby announces that, in accordance with Article 28 of the Tariff System Regulation approved by State Decree #41,446, dated December 16, 1996, tariffs of water supply and sewage collection services will be adjusted by 6.78% (six point seventy eight percent), effective as from August 29, 2004.

SABESP’s tariff adjustments were calculated using the formula below:

IRT   =    (VPA x IrA) + (VPB x IrB)
R

Where:
IRT = Tariff Adjustment Index
VPA = Amount A, which corresponds to the values recorded between July 2003 and June 2004, related to costs and expenses with: electric power; treatment supplies; federal taxes; CPMF – Contribuição Provisória sobre Movimentação Financeira (Temporary Contribution on Financial Transactions); Cofins/Pasep taxes on revenues; State and Municipal taxes; and charges for the exploitation of water resources for the purpose of public supply;

IrA = Adjustment Index for Amount A: the annual variation of the following ratio: Amount A values, accumulated between July 2003 and June 2004, divided by the accumulated billed volume in the same period, in relation to the same calculated ratio between the Amount A values, accumulated between July 2002 and June 2003, divided by the accumulated billed volume in the same period;
VPB = Amount B, which is obtained by the difference between Gross Operating Revenues, accumulated between July 2003 and June 2004, and the Amount A for the same period;
IrB = Adjustment Index for Amount B = equals to the IPCA Index (Brazilian Wide Ranging Consumer Price Index) published by IBGE - Instituto Brasileiro de Geografia e Estatística (Brazilian Institute of Geography and Statistics), accumulated between August 2003 and July 2004;
R = Gross Operating Revenues, which corresponds to the values recorded between July 2003 and June 2004, originated from direct and indirect operating revenues related to water supply and sewage collection services;

One should consider SABESP’s official information as data source for the tariff adjustment calculation, in particular the financial statements periodically issued (i.e. DFP – Demonstrações Financeiras Padronizadas (“Standard Financial Statements according to the Brazilian Corporate Law“) and ITR – Informações Trimestrais (“Quarterly Financial Statements according to the Brazilian Corporate Law”)).

Further details on the adjustment application will be made available on SABESP’s website www.sabesp.com.br and will also be published at the São Paulo State Official Gazette.

São Paulo, August 18, 2004.

Rui de Britto Álvares Affonso
Economic and Financial Director and Investor Relations Officer

 

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.

Date: August 19, 2004

 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By:
/S/  Rui de Britto Álvares Affonso
 
Name: Rui de Britto Álvares Affonso
Title: Economic-Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.