Sabesp privatization triggers spike in complaints and shareholder dispute over Emae acquisition

After the São Paulo state water utility Sabesp was privatized by Governor Tarcísio de Freitas, consumer complaints rose sharply. Data from the state regulatory agency Arsesp show a 70% increase in overall complaints and a 224% surge in reports of water service interruptions compared with the previous year. Municipal chambers in cities such as Caraguatatuba, Carapicuíba and Limeira have opened parliamentary inquiries into the company's performance. Indicators of customer service also deteriorated, with complaints on Reclame Aqui up 72% and average response times lengthening from fewer than five days to more than seventy days. René Vicente, president of the workers’ union CTB‑SP, said, “Privatization was presented as a solution but the data show the opposite.”

At the same time, minority shareholders of the Empresa Metropolitana de Águas e Energia (Emae) are seeking to block a special shareholders’ meeting scheduled for 30 May that would approve Sabesp’s incorporation of Emae. They argue the share‑exchange ratio of 1.319 Sabesp shares for each Emae share undervalues the company and that they were denied critical documents. Legal actions have been filed in court and with Brazil’s securities regulator (CVM). Sabesp, which bought a controlling stake in Emae in October 2025 for R$ 1.13 billion, says the transaction complies with all legal requirements.