First quater Companhia de Saneamento Sanepar. For those requiring simultaneous translations, this feature is available on the platform. To access it, simply click the Interpretation button indicated by a globe icon at the bottom of the screen, then select your preferred language: Portuguese or English. For those listening in English, you also have the option to mute the original Portuguese audio by clicking Mute Original Audio. Please note that this video conference is being recorded and will be made available on the CEO's Investors' Relations website, ri.sanepar.com.br, where the full earning release and presentation materials are available. You can download the presentation directly from the chat available in English. During the presentation, all participants will have their microphones muted. The Q&A session will follow the presentation. To ask questions, click the Q&A icon at the bottom of your screen and type your question into the queue.
Once your name is called, a prompt will appear to activate your mic, allowing you to ask questions. We recommend submitting all your questions at once for efficiency. If your question is not addressed during the event, please feel free to email it to ri@sanepar.com.br. Please be aware that the information provided during this presentation, including any forward-looking statements regarding Sanepar's business outlook, projections, and financial targets, reflect management's current beliefs and assumptions, as well as information available at the time. These statements are subject to risks, uncertainties, and changes in circumstances that could cause actual results to differ materially. Investors should consider general economic conditions, market factors, and other variables that could impact the company's performance and cause actual results to differ from those expressed in forward-looking statements. I will hand it over to our Chief Financial and Investor Relations Officer, Abel Demétrio. Good morning. Good morning, everyone.
Thank you. Thank you for your participation in this video conference. With me, we have the Accounting Manager, our Investment Director, and our Environmental and Social Initiatives Manager. I would like to hand over to our CEO, Wilson Blay, who is traveling on business. Please, the floor is yours, President. Good morning. Good morning, everyone. It's a pleasure to be here with you. I thank the participation of our directors, shareholders. It's an important day for all of us. It's a day to show and be able to celebrate some of the good results we had during this first quarter of 2025. I'm traveling. I'm visiting our units in the interior of Paraná. I'm in Cascavel, an important city where the sewage coverage exceeds 90%. It's almost universal.
In these discussions, we need to reach good results and do everything possible for that and guarantee our company is a successful company. I would like to request everyone to bring out and visualize some of the good results that we had. Our net result exceeded 218% if compared to the first quarter of 2024. An extremely relevant fact for us was the issue of our rate of payment, which was close to BRL 4 billion in the budget within the budget law of the federal government. It is registered and it is individualized and formalized. Now this commitment to receive this payment is done, and it is a big gain for us. We have reached this final phase. Of course, we have to adopt the rules, which are the current rules.
All the account, all the accounting registers, and all the other measures to find the best equation for the distribution of this result. Another evidence, important evidence, is the issue of PDV. We managed to conclude our plan of voluntary dismissal. 527 employees adhered to this plan, and they are in the process. This will bring us a good result in our accounts with a payback of around 12 months. This brings us this reorganization, administrative reorganization, which is very healthy for these companies, companies like ours. Another issue that has to be observed is our energy. It is an expense. It is a that presses our results quite a lot. We decided to go to the free market. It is not just turn a key and turn off another key. That is a whole process of adjustment of our points.
This has been done gradually, but it has brought results of around 25% in decrease in the expenses we had compared to 2024. An important highlight, a fact that has to be also highlighted, and Aleor, our director, we will talk about that. It's our investments. We had an increase of over 14% in our investments if compared to last year. This is a result of a lot of work, good management, and also Julio's work in the Environmental Board with all the licenses giving way to these investments that are planned: 11.8 in a cycle of five years and 2.6 this year. To conclude, I think it was a very successful period. Today, on showing these numbers, we have to understand the responsibility and the transparency in Sanepar's management. Thank you all. I count on our board.
I count with the hard work of everybody, and we are available to do our best. Thank you, President. Now starting our presentation, photos, these are the slides. Let's start with talking about the highlights of first quarter 2025. In the operational context, it was a very positive quarter with an increase in billed water in 3% and sewage in 4.8% compared to the same period of 2024. We had in the period of 12 months a growth of 1.1% in water connections and 2.7% in sewage. We highlighted the water is 100% universalized. In sewage, we are almost universal. You know, now we have 81.5% of sewage collected, out of which 100% is treated. This is a goal of the company to get a universalization, and we are on this path.
About financial highlights, our net revenue reached BRL 1.8 billion in the quarter, an increase of 6.3%. Our EBITDA was BRL 1.1 billion, an increase of 44.1%. Of course, with the rate of payment reflection, we are part of this, and that is not financial, with an impact in the EBITDA. EBITDA margin 61.8% and net profit increasing 218%, like our President mentioned, reaching BRL 1.2 billion in the first quarter. About efficiency, our loss per connection is 221 per day, a decrease of 0.9%. The default was 2.8%, and we had an increase of 0.8%. As we said, the President mentioned the PDV is something important. In the people's management, we had, we are in the phase of implementation payback with the people who are being disconnected. We started the process in March, and we had more people who disconnected from the company.
These people have been very important to the company. The investments were BRL 487 million, the CapEx. Of course, the financial covenants always met. In the next slide, we are talking about the operating results concerning the water measured volume and billed volume. We had an increase of 3.4% in the first quarter of 2025 if compared to the first quarter of 2024. The volume billed increased 3%. We saw a good increase last year, 7.9%. We are growing in water. The sewage measured volume is an increase of 5.1%. In the billed volume, 4.8%. Operationally speaking, it was a very good quarter. On the right-hand side of the slide, we had the issue of the connections of water and sewage.
We had an increase in water connections in 12 months of 38,743 new connections of water, which is a reasonable increase for the company that is universalized for many years, since 2007, 2008. We were universalized. In this period, in the quarter, an increase of 11,000 connections. Concerning economies, there were 16,000 new economies of water, an increase in 12 months of 50,973 economies, an increase of 1.2%. Of course, the connection, making a distinction, sometimes there is a unit that has one connection and an economy, a different economy. This prevents us to have a connection. Sometimes you have several apartments, and they are measured in economies. For example, 10 apartments, 10 economies, just for you to understand.
Concerning the sewage, an increase, naturally, there was an increase because there is a lack of, we have not reached universalization, but the number of connections of sewage increased 2.7% in 12 months, plus 68,139 new connections, sewage connections in the period of the quarter, 11,237, 11,000, and economies, 18,000, an increase of 94,000 new economies of sewage with a growth of 2.8%. We are on the path of investment seeking universalization of sewage and maintenance and good service related to water. Next slide. Let's talk about reservoirs levels in the first quarter. Our reservoir making up Iraí, which is all this system, we were quite comfortable. Iraí, one of the reservoirs is 97%, then 99%, Piracora I and 200%. Obviously, the reservoirs are not built to be always in the maximum level of capacity.
In a season of a drier season in winter in Curitiba, I think we have less rain. Obviously, these levels may fall, may drop, but they are always important to keep production of water at levels to meet all the population's needs. Next slide. We have the financial indicators in details. Let's talk about default. In the first quarter of 2023, we had a default of negative. Given the high program of recovery of credit, we had a 4.7% default in the first quarter of 2024 is 2%, and now in 2.8%. We are working with the commercial area, adopting some measures aiming at reduction of this default and a more active position in the company to charge and get this resource, obtain these resources, which are important to maintain the company, the cash flow, and the investments programmed.
The loss for connections, there was a decrease at the end of 2024. It was 223 L at the end of, it was 221 of losses per liter per connection per day in 2025. Speaking about biomargin, EBITDA was 68%, as we saw, with a history of two years in the first quarter around 45%. It is important to highlight that taking out the rates of payment, which is a non-recurrent item in the first quarter of 2025, we would have EBITDA around 45%. This shows how solid the operational performance is in terms of stability of the index and the maintenance of its operations. ROI annualized is 20.8%, and ROIC annualized 14.3% with an impact of these registers. Next slide, the quarter results. The issues related to financial aspects. We had an increase of 6.8% in our net revenue.
It's important we reached BRL 1.8 billion in the first quarter of 2020, above the 2024. In the expense, we had a cost of BRL689 million in expenses with a decrease of 25.4% compared to the same period of last year. Influenced by other operational revenues on the part of rates of payment, this impacted positively compared to the cost and expenses. We have a bit of company reached a 53.4% increase and below with an EBITDA margin of 53.4% with an increase of 15.7%. About EBITDA, we have an EBITDA around BRL 600 million-BRL 700 million. This year at BRL 1.116 billion, an increase, quite an important increase. The margin we saw in the previous slide with a history in the past quarters of 45%. We are still around 45%, but with all the registers, we reached 61.8%, an increase of 16.2%.
Likewise, the net liquid at the end on the right side of the slide, we were like BRL 300 million. In this period, it was BRL 1.208 billion, an increase of 218% with a net margin from 22% in the previous quarters to 66.9%. An increase of 44.6%. Now we're talking about net revenue. Let's go through each one of the items. This month, we have several events, not recurrent, which make the comparative analysis more difficult. That's why we are going to go through one by one so that we can go to the main topics. As we saw, the net revenue, this is not a recurrent point. It's okay. 6.3%, the growth reached BRL 1.8 billion. The important thing is that last year, in the same period, there was an increase of 16.8% compared to the first quarter of 2023.
Naturally, we start from a high base, which was last year, but still we kept a growth quite favorable of net revenue. The first account you're going to observe is the personnel account with an increase of 80%. Here we start to have two points that are not recurrent that I would like to detail. The first one is the provision in February in the first quarter of the program of voluntary dismissals with BRL 171 million provisions that will be paid to the employees when they are disconnected and in some installments. This is a movement of non-recurrent items in the period. Besides that, we had an increase of some labor loss in BRL 608 million. We have a reduction of provisions.
This impacted the account of personnel, but I would say that it's a net close to zero due to the reversal of provisions in the item of provisions. These are the two main reasons why the personnel account shows this variation in the period. The two movements are important movements because one adjusts the issue of voluntary dismissals, and the other one brings all the work that is being done since 2024. In this quarter, it was, let's say, gained more body, became more robust to leave all the labor lawsuits updated as required by our independent audit. The second item is PPR. Obviously, it has an increase due to increase of profit. It's a provision that is done based on the results, and it increases due to that. Materials increased 7.3%.
I would say that the account of materials is in line with the growth of the volumes because the volume produced of water increased 2% in the period, and the volume of sewage treated increased 5.1%. In terms of actual increase of volumes produced and treated, we have something around, on average, 4.5%, considering that we have an inflation in the period of 5.5% IPCA in 12 months. The material account is very well, is within what is expected and what was predicted by the company. The main account of material, which is treatment material, represented 63%, and it had an increase of 2% compared to the same period of last year. Energy, electricity is a third item here, as mentioned by the President, there was a decrease in the cost around BRL 37 million, BRL 36 million in the first quarter of 2024.
We spent BRL 144,370,000 with energy, and in this quarter, it is BRL 108,094,000. Those who followed the teleconferences for some time remember that our prediction of reduction of cost in electricity for 2025 was around BRL 150 million. In this first quarter, we have a result around BRL 36-BRL 37 million due to the migration to the free market. It was an account that was quite favorable to us. We have to remember that this reflects in the future in less tariffs for the population, lower tariffs. Outsource services or third-party services, an important growth, 71.4%. The main points are in the issue of technical services. We had the provision for law expenses related to the lawsuits, the rates of payments. We have provision for that.
This payment obviously is done from the moment the company receives these resources, when we receive the money, when we benefit from the rates of payment. The provision for this payment is already done due to contract issues. Due to contracts, we cannot reveal the amount, but it was very well negotiated when we hired these law firms. Due to the volume of the rate of payment, any percentage is quite relevant. In the issue of services of third parties, we could highlight the issues of vigilance or security. We had a significant increase in the period compared to the same period last year. The justification is the new contract scope in security monitored. We have cameras and 1,500 addresses. The control center adopted by the company with an additional cost.
The results mean better security impacting the quality of the services rendered to the population. We had, one or two years ago, several robberies of cables, copper. The investment here at this bigger expense in vigilance and security is not to interrupt the supply of water and the sewage treatment to guarantee that. For sure, this reflects in the better billing of the company because we do not stop. We do not have this. The issue of alarms that we replaced to alarm plus cameras, and it was an important item, and they increased a lot, improved the service very much. We had some relevant increase in the issue of operation and maintenance building services. It is still third-party services aiming to leave the commercial units, operational units of the company always in a condition more suitable in terms of functioning.
This was some items that were spent in our management of regional sewage services, some payments for Paranavaí and in Curitiba with the implementation of the supply system of CSB. We had some other services, the data processing services. There was an increase of expense due to some expenses with software aiming at the maintenance of ambient mainframe, which is important for the corporation. Now, next account is general services with an increase of 51.6%. Here, just like in the labor issue of personnel, we have some indemnization for third parties and some payments for labor lawsuits. We had an increase in this period due to all this work of updates and judicial payments. Now we have the program of social partnerships headed by Julio.
We have the subterranean monitoring of water, which was an expense in the period, and some new contracts for environmental education, monitoring of space, visits of space visits, and so amphibian chairs that were utilized. It was a summer operation where we had an increase and was very well accepted. The research performance was very good in the people on the calls in the months when it happened. Now, next account is the provisions. We have an increase, a significant increase. It was BRL 1.193 billion. We have here the issue of the rate of payment. Once we made the provision for the regulatory payable of BRL 1 billion for the rates of payment in the inscription in the union. Part of this action, the fees, we had a provision for the regulatory passive in this amount.
This account is BRL 1 billion over BRL 1 billion. The difference is the reversions of updates due to this. We have 1,000 ends of lawsuits totaling, and some civil lawsuits and environmental lawsuits, so reaching over BRL 3 million. This impacted our provisions. Besides that, we had 56% lawsuits which were filed and other lawsuits with environmental around BRL 400,000. The next item, the issue of expenses and revenues. We had revenue above the financial expense. We had three big launches, which is the revenue of interest due to the rates of payment in over BRL 2 billion. In proportion, a provision for the regulatory passive of over BRL 1 billion reducing the account. Besides that, as a result of our accountability, we had to make adjustments to the just amount of the rate of payment, which cost over BRL 219.
Measuring the current amount and expectation of receiving this amount. The last item, other costs and expenses, we had the operational revenue of the rates of payment about the main amount of BRL 2,055,000,000. This account had an important reversion of BRL 1,800,000,000. Only the operational revenue was very important because it was around BRL 2,055,000,000. With all that, we reached the final result of BRL 1,200,000,000 at the end of the quarter. Next slide. Let's talk about CapEx investments. As we can see in the graph, we have been growing in terms of investments. First quarter, BRL 403,000,000 last year. In the first quarter, BRL 425,000,000. This year, BRL 487,000,000. The composition of CapEx is 38% in water, 61% in sewage, and 7% in others.
The origin of resources, 78% in this quarter with own resources and 22% with outsourced resources. Next slide, capital. We have net debt and coverage. So we have BRL 712 million debt and long-term BRL 5 billion 897 million totaling BRL 6, 609,000,OOO million of total debt. At the end of March, we had a cash flow of BRL 1, 849,000,000 million, which results in a net debt of BRL 4, 760,000,000 million, an increase of 6.2% compared to the net, but with a leverage of 1.5x the net debt by EBITDA. Below the cash generation, with quite a growth, 15.5%. Here, with an impact of the rates of payment, we have to remember that right now there is an accounting impact, and we still do not have the money in our account. That is why the conversion of EBITDA had a drop, was to 65.7% in the period.
The cost of the weighted average cost of that was 11.1% in line with the first quarter of 2024, which was 11%. We managed to maintain despite the increase of the interest rates in the last few months, an increase of inflation, but we kept our cost of capital quite stable. This is important because it guarantees that the financial expense does not have a strong impact on our results. This is a result of a debt that is allocated 34% in TR. It is a variation that obviously benefits us because it does not increase in the same pace as a SELIC, for example, inflation 28%, DI 23% impacted by the increase of the interest in this part of the debt. We have 5% corrected by IPCA and FIPI, which is allocation of assets, TJLP 4%, Euro 3%.
Remember that in terms of euro, we have about 80% exchange rate, which is our HAT, and 3% without correction. This is our profile of debts that the company has as a debt breakdown. In the next slide, speaking of the covenants with all our financial agents, we have in terms of BNDES, which are the contracts, the benches, the fourth and seventh issues, the covenants of net bank debt by EPI. It has a condition that has to be lower or equal to 3 . In the first quarter of 2025, we are with 1.45 in terms of, so in the average are comfortable in this regard. Next covenant is EBITDA by the debt service coverage has to be equal or bigger to 1.5. It's the minimum condition. At the end of the first quarter, we have 1.7x in this relation.
Another owner's debt is equal to or less to 1. And adjusted EBITDA, we have a covenant which is EBITDA adjusted by the financial liquid expense, net expense. We have more revenue than expenses in the period. This rate has to be 1.22x because it has to be equal or. And the bank debt by adjusted EBITDA has to be equal or less to 3 with 1.11 at the end of first quarter. And other owner's debts adjusted EBITDA equal or less to 1, we have 0.27. Now, speaking of the nine, 10, 11, 12, 13, and 14 debenture issues, and we have the covenants of net bank adjusted 11% equal to what we saw previously, EBITDA debt service coverage ratio equal to the cash. And concerning the KfW contract, we have a different covenant, which is the level of debt.
It has to equal less than 6% this quarter. We closed with 51.6% against the same period, 48.9% last year. The level of debt suffers an increase due to the rates of payment because we understand that out of this BRL 4 billion, BRL 3 billion go to the PR, to the passive. Obviously, the passive is higher than the asset. Speaking of big numbers. Next slide. Let's talk about the balance sheet. Our net debt at the end of 2024 fell 1.4% to over BRL 5 billion. Our financial investments were BRL 1.8 billion. The loans, BRL 6 billion, over BRL 6 billion. Dividends and interest and equity, BRL 318 million. The operating working capital had a decrease of 33.5%. The main account of variation was the salaries and social payments due to the provision made for the payment of the PDV.
It ends up impacting in salaries and social taxes. Obviously, from the moment we paid the workers, we go back to the normal levels, which was around BRL 288 million, BRL 285 million. Add the assets and liabilities, an increase of 37%. With other assets and liabilities, with an increase of 37%, our PL of over BRL 200 million, BRL 2 billion, with cash flow turnover. When we do the issue of payments and salaries and taxes, this turnover goes back, tends to go back to more days compared to what happened in the previous years. Finally, speaking about the cash flow, in the first quarter of 2025, we had the operating activities being 15% increase of generation of cash flow reaching. In investment, we had additional expense of 14.3%, reaching BRL 485 million. The financing activities consuming over BRL 200 million in.
We had a result lower than last year in the first quarter, given that last year we had the benchers. At the end of the day, if you add up all these items, there was an increase in the cash flow of BRL 47 million from BRL 1, 800,000,000 million to BRL 1, 844,000,000 million in cash, if compared to the first quarter of 2024, a reduction of 3.4%. This is the presentation about the results of the first quarter. I would like to also hand over to Leura Lúcia if she wants to talk about some. The investments, which is a relevant issue, we have several works being executed. If you are interested to ask questions, then they will answer. Rodrigo, I hand over to you. This was the end of presentation. Now we will start our Q&A session.
To make questions, you have to send them through the Q&A icon at the lower part of your screen. You will be requested to activate your microphone. If you cannot open your microphone, just send in your questions and just write without microphone, and I will read your question out loud. Our first question comes from Marcelo Fonso, analyst by side. He wants to congratulate Sanepar for its results, and he wants to know more details about the labor indemnizations or compensations. Thank you, Marcelo, for your questions. In this regard, I will send over to Osiris, our Accounting Manager. He will talk about all the issues related to provisions and to the dismissals. Thank you, Marcelo, for your question. Concerning the compensations, the company has been doing some work related to the labor suits. It happened in 2024.
During the first quarter, we intensified this work together with our legal department exactly to verify all the lawsuits that were concluded and that might be, let's say, written off. As you can see in the results, we had an impact, significant impact. We paid around BRL 170 million in lawsuits that were concluded. We had a provision for that, and it was legally deposited, and it was registered in the assets. This was paid. In terms of legal actions, we had BRL 170 million compensations to third parties, around BRL 22 million as well to third parties, which brought an impact in these two accounts. The net, if you look at the result, practically was null because we referred to the provision and constituted an expense in personnel in the group of general and taxes.
This brought a benefit, fiscal benefit for the company because until then, these provisions, they were like a deferred. We were not using this as a deductible expense. The moment we paid all these lawsuits, we then calculated the actual profit, and we had a benefit. We deducted an expense that reduced our taxes. Basically, that's it. Now, continuing, next question from João Vítor Schmidt, analyst by side. Could you give more details about the increase of the full and what is the perspective of the company for the future of this indicator? This is João Vítor's question. Hello, João Vítor. Thank you for your question. Speaking of perspectives for the full, besides being a projection, which is not usual from the part of the company, we have macroeconomic factors that influence this issue.
I can say, I can assure you that several measures are being adopted for the company to go back to what we consider suitable for the full. Some actions, like for example, a new program of installments, of payment of installments. We have not felt the effects of this in the first quarter, but we expect that in the second quarter, as a result of these measures, we will be able to see the results. We are seeking some changes, technological changes in the sense that allow the client more availability of payments, more ways to pay, like credit card using a special machine payment, to avoid cuts so that the client, this is being tested. It's in final phases of test.
Finding different means of payment for the users, preventing them for the client to have the services cut and also to pay any debts and pending bills, which sometimes they are not. The best moment is after you do not pay the bill for too long, it is more difficult to settle all these accounts. The second thing is another action to be more proactive in terms of charges of these late bills. Several actions, and these are ongoing measures, and a great part of them started in the second quarter, and some are starting now in May. We expect to see the results, if not in the third quarter, in the fourth quarter. Let's wait and see if there will be enough, if we will be able to bring this to a better level, what we consider in terms of default.
We have to remember that AGEPAR concluded the first tariff review in the AGEPAR. We had an increase from 0.44% to 0.62%. Obviously, this brings for the company a better revenue in terms of the recognition by the agency of this default. The objective is not that one pays for the others. The objective is to have a controlled default, and our levels are always, historically speaking, very much under control. Next question comes from Yuri Gullar, analyst by side, Truva Investments. He would like you to detail the rates of payment. What are the dealings with the regulator and how the company interprets the what are the measures for the distribution of this amount? What will be the treatment, the legal treatment, the tax treatment? It would be important to give you more details to the stakeholders, please. Yuri, thank you for your issue.
The issue of rate of payment is quite complex, but I will try to do my best here to give you an overview. When we look at the rate of payment that is inscribed in the union law, we have BRL 3.9 billion. This related to March, April 2024. In this moment, the company updated this rate of payment by IPCA until March 2025, which is a rate of updates. Constitutionally speaking, it is the period. The result is an increase. This amount is from now BRL 4 billion. This is the new number, the updated number, BRL 4.203 billion. This rate of payment has two natures. One is the main amount, and the other one is the update by SELIC, the financial update by SELIC and by SELIC and IPCA. This characterizes as a financial yield.
That is why you have to pay taxes, 45% of fees per SEPI. The company already paid that. That was around BRL 100 million. Once legislation determines that after you calculate this revenue, you have to pay next month. That is related to rate of payment. AGEPAR, we have a definition of 75% of sharing. This was defined in a general rule of sharing for this item, which is the recovery of fiscal credits with the company today made a provision for the regulatory liability. However, as we mentioned, two important, the company requested the agency to give a special treatment for this case, given that it is a sui generis characteristic, this unique characteristic. We are talking about a rate of payment which originates from 1994. It is a very old story, let's say, before the Plano Real.
The company requested with the agency a more detailed analysis on the theme. We understand that the agency has a very complex work to be done about this theme. The precedent we have in terms of the energy distributors, like the. It is a very, it is not consolidated theme in terms of having a landmark in terms of how to share these benefits. Obviously, the company tries the best for the company, for the clients, for the population, for the shareholders. In the sense that all this rule of balance is respected, and in this sense, the company is working. Thank you. Next question from Reinaldo Verissimo, investor. He would like to know what actions you intend to do to bring forward the gross suit to the level of 90% of collection. What actions are you taking with the increase of revenue loss, let's say?
Thank you, Reinaldo. Concerning the revenue loss, he mentioned the default and the works that aim the forced request to municipality in bringing them to universalization. I will bring Leura, the Investor Director, Reinaldo. Good morning. Good morning, Reinaldo. Concerning, I do not know by heart or what is the date, the exact date. If Abel is here, we can discuss that. I can say that we have some work being done, projects being worked on so that we can reach universalization in the state as a whole, but in forced request to also. Abel, do you have this information here? Today, we have 83.8% of service. The goal should be for the next years, since it is a project, significant project, a project that, because it has a long time to be executed, it is not simple in forced request to because there are many areas that are occupied.
There are several rivers going through the city that make things difficult. We have some dams to be executed. We have hotel infrastructure. Sanepar also serves the hotels, and this creates a complexity. We are developing this project so that we can reach whatever is established within the new landmark, always seeking both by orientation of our President and the government to reach universalization as early as possible, which is interesting for the company because this generates revenue. Next question comes from Renan Souls, investor. He brings three questions. One, we've seen the cost of third parties increasing at every quarter. Is there a plan of contention? Second, the result of tariff was enough for the company in your assessment? And number three, is there any intention to promote together with the agency a process of discussion to assess the assets, annual assets in São Paulo?
These are Renan's questions. Thank you for your questions. The issue of cost of third parties is something the company has been looking at not only during the quarter, but I would say systematically. On a weekly basis, in our board meetings, monthly in the council meetings, these are themes recurrent. We really look at it. We have to assess all the issue of level of economic activity that brings this increase in the cost with labor work. We have an increase in terms of inflation of labor work. A great part of the third parties is about the need to use third parties, outsource service, the issue of maintenance of water networks, sewage networks. Many times, we have tables that are above the inflation of the period. So the third outsource service is an account as the company has all the process of monitoring.
We have to remember that in this period, in this quarter, the issue of the payment that was provisioned brought an impact that is quite relevant and has to be taken into consideration. Other items like we have more and more treatments of sewage in higher qualities. In other words, we launch effluent in rivers with better quality than we would be doing due to the new stations of treatments that are delivered. You have a cost of transportation, of security, of treatment of this. We have more operational activities that demand higher costs in this regard. Obviously, the company always follows up this cost and tries to monitor that so that we bring it down to levels that will not compromise the company. About the conclusion of third RPP, we are still in the phase of controlling due to the regulating agency.
It's hard work, complex work done very rigorously by the agency. They are very rigorous, and we are in this issue. The fact is that the tariff vision from the perspective of the company was quite balanced, and we understand that several demands of the company have been recognized. We have to remember that we had the end of deferral, and that even with that, the company obtained some issues that were favorable. For example, the increase of WACI that was necessary. WACI was below our peers were practicing, the net of 8.4%. It is important because we have financial costs increasing due to the interest rates that are higher. As I said, in aging, we 0.4% -0.66%, which brought benefits to the company, the X factor, which was zero. The idea is 0.08. This will impact in the future favorably for the company.
The important thing is that we had recognition of asset base quite relevant for the calculation, which gave us a balance concerning what was the tariff revision. We have to remember that when talking with the agents in the market, the opinion was that it was a tariff revision quite balanced and positive for the company. What is important because the flow of investment necessary for investments for the universalization for the next cycle is very relevant. The company needs resources to face all the service for the population. There was a third issue, which I did not—could you repeat the third question, please? Is there any intention to promote, together with the agency, a process of discussion for the annual assessment of assets like in São Paulo?
The fact is that, as I said, we are still in a phase of having fiscalization by the agency, monitoring by the agency. We received this news from São Paulo. I think it's a news that updates this issue, but we have not reached the point of discussing it with us. We still have—because we are coming from three revisions. One after another, we had the second revision divided in two phases. So there were 2021, 2023, and now 2025 in 2025. The fact is we need to breathe in order to meet all the demands of an agency that is more and more equipped with technical teams, with professionals, very high qualified. There are lots of demands growing for the company. Obviously, this is an evolution.
We understand that we go to the first tariff revision, and now without bigger triggers, without big gaps for the future, which is important for stability, regulatory stability for the company, for the investors. Other themes like this one of a possible precification of the assets annually. This might be assessed by the agency, I believe, and the company must, in the next few months, assess what the positive impacts would be of that measure. Right now, we do not have any formal request by the agency, but we are following by our regulation agency and everything that is news in the market, all this new precification system done in São Paulo. Who knows? This might be dealing with the company, but we have not started it yet. Next question comes from Ricardo. Ricardo Gomes, an investor.
The payment of rates of payment was registered in terms of accounting, considering at all parts that sells that you have to earn a regulation talks about 15%. And Sanepar questioned AGEPAR for the company in a public consultation. Is this issue pacified, or are there discussions about the estimation of resources coming from this rates of payment? I want to detail something because about the amount of this rate of payment, first, we reduce the COFINS and PASEP . And after that, we apply the 75% over the net amount. This is defined by the agency. That was the criteria of the making up of the 75% of regulatory liabilities, a provision, regulatory provision. The company assigned to the third phase during the third tariff revision questioned, but the agencies understood that that was not the scope of the object, both consultation of public hearing.
This type of questioning should be done in a separate way, given that that was the object of the public consultation, was to talk generally about all the indicators. It denied this contribution of the company, but it emphasized the company could present specifically about the team, its demands, and its details, its request. The company did that. AGEPAR will analyze that. I can assure this is not an easy analysis by the agency. It is quite complex. It involves population, the company, shareholders. We expect that it will act in a balanced way, in a sensible way, that it can be very well solved so that at the end of the day, everyone can be happy with the decision of the agency. The company will contribute as best as possible to bring its arguments in favor of a different distribution than the one that is currently proposed.
We conclude the Q&A session. I'd like to hand over to the Financial Director and Investor Relations Officer, Abel Demétrio, for the final considerations for the company. Rodrigo, thank you for conducting this presentation. We received a request by Saulo Bertarso about an issue of holding, and we'll answer to you through our I area. Thank you for your questioning. Leura is adding that the goal of the 90%, which is the universalization level in 2027, and obviously for Foz do Iguaçu and for this municipality, the company intends to make all the efforts to reach what is the agreement in the contract. I thank you, everyone. I thank you all the team, and I wish you all an excellent weekend. Thank you so much. The video conference of results related to the first quarter 2025 is concluded.
Thank you for the participants and have all a wonderful day.