(a) Balances

	2005	2004
Private-sector customers:
General customers and special customers (i) (ii)	813,306	680,844
Agreements (iii)	142,139	119,027
	955,445	799,871
Government Entities:
Municipal	377,373	289,382
Federal	19,391	16,471
Agreements	59,408	30,979
	456,172	336,832
Wholesale customers – municipal authorities: (iv)
Guarulhos	294,035	264,867
Mauá	94,887	74,571
Mogi das Cruzes	4,145	4,949
Santo André	256,063	221,913
São Caetano do Sul	2,708	3,559
Diadema	76,054	62,385
Total wholesale customers – municipal authorities	727,892	632,244
Unbilled amounts	239,832	218,545
Subtotal	2,379,341	1,987,492
Allowance for doubtful accounts	(920,736)	(759,640)
Total	1,458,605	1,227,852
Current portion	1,195,249	949,792
Long-term portion (v)	263,356	278,060

(i) General customers - residential and small and medium-sized businesses.

(ii) Special customers - large consumers, commercial industries, plants, condominiums and special billing consumers (industrial waste, wells, etc.)

(iii) Agreements - renegotiation of past-due balances into installments.

(iv) Wholesale customers – municipal authorities - Accounts receivable from wholesale customers relate to the wholesale of treated water to certain municipalities, which are responsible for distribution, billing and collection with the final customers, as follows:

	2005	2004
Balance in the beginning of the fiscal year	632,244	506,309
Billings for services provided	241,126	217,525
Collections - current year services	(113,496)	(68,060)
Collections – prior year services	(31,982)	(23,530)
Balance at end of year	727,892	632,244
Current portion	13,092	11,179
Long term portion	714,800	621,065

(v) Long-term receivables - Past-due and renegotiated balances with customers and past-due receivables related to the wholesale of water to municipal authorities. It is stated net of the provision for doubtful accounts in the amount of R$ 519,632 on December 31, 2005 (R$ 394,569 in 2004).


(b) Customer accounts receivable aging summary

	2005	2004
Current	669,917	568,789
Past due:
Up to 30 days	174,129	159,634
From 31 to 60 days	86,206	80,889
From 61 to 90 days	61,743	58,120
From 91 to 120 days	52,237	47,148
From 121 to 180 days	95,253	87,856
From 181 to 360 days	240,533	170,582
For more than 360 days	999,323	814,474
Total	2,379,341	1,987,492

(c) Allowance for doubtful accounts

(i) Changes in the allowance for doubtful accounts are as follows:

	2005	2004
Balance at beginning of year	759,640	669,431
Private-sector customers/government entities	23,457	13,339
Wholesale customers	137,639	76,870
Additions in the fiscal year	161,096	90,209
Balance	920,736	759,640
Current portion	401,104	365,071
Long-term portion	519,632	394,569

(ii) In the income

The Company recorded direct charges for probable losses in accounts receivable incurred in 2005, in the amount of R$ 255,292, directly to the income for the year, recorded in “Selling Expenses”. These losses amounted to R$ 241,577 in 2004.

	2005	2004
Provisions (over five thousand reais)	(207,233)	(99,297)
Recoveries (over five thousand reais)	46,137	9,088
Direct write-offs (less than five thousand reais)	(177,138)	(205,261)
Recoveries (less than five thousand reais)	82,942	53,893
Expenses (note 19)	(255,292)	(241,577)