Halifax Water customers will have a rate hike next year but exactly how much is yet to be seen.
The utility had asked for two increases for water and wastewater services: 15.8 per cent on Jan. 1, 2026 and 17.1 per cent on April 1, 2026. This would amount to a 35.6 per cent increase over three months.
The Nova Scotia Regulatory and Appeals Board (NSRAB) ruled Tuesday that the proposed increases were “sudden and significant” and made several denials and cost adjustment requests that are expected to drive down the two rate hikes.
The exact size of each increase won’t be confirmed until Halifax Water submits a compliance filing by Dec. 23 and it’s checked by the board.
The most significant denial was related to “deficit elimination,” which alone would drop the April increase from the proposed 17.1 per cent to seven per cent.
The board’s decision pointed out that Halifax Water’s general manager acknowledged at the hearing that the proposed increases amounted to “rate shock” because of their magnitude over the three-month period.
“While there is no clear definition of ‘rate shock’, the proposed rate increases in this application clearly fall within the scope of what is understood as ‘rate shock’, as was acknowledged by Halifax Water at the hearing,” the decision stated, adding that the proposed increases are “sudden and significant.”
The NSRAB said it received more than 2,000 letters from customers, households, seniors, people on fixed income, landlords, tenants and business owners who all “raised concerns about affordability.”
The decision also said that intervenors — which included the Department of Municipal Affairs, rental housing companies and Oland Brewery — also spoke out about affordability.
Oland Brewery wrote a letter to the regulatory and appeals board as part of its role as an intervenor to say that rising utility costs were creating an unfair business environment.
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Oland’s general manager wrote that “as the federal and provincial governments work to remove internal trade barriers, companies like ours may move production to jurisdictions where it is more affordable.”
Mayor calls for auditor general reviews
Halifax Mayor Andy Fillmore expressed concern about the proposed rate hike this past spring and has spoken out about the impact on residents.
He wrote to the consumer advocate to share the concerns and also asked the CEO of Halifax Water to consider opportunities for federal partnership on infrastructure.
On Wednesday, Fillmore told reporters that while he agreed with the majority of the NSRAB’s findings, he was dissatisfied with the board’s direction to Halifax Water to explore whether the municipality could absorb “some, or all, of the revenue shortfall.”
“That is absolutely something that HRM cannot responsibly consider without an independent and full audit of Halifax Water,” Fillmore said.
Fillmore said he has written to the municipality and the province’s auditor generals to ask that they each review Halifax Water’s governance, financial management and capital planning practices.
“We rely on Halifax Water to support our region’s growing housing needs, our economic development goals and to meet public health and public safety demand. So, these reviews will help us to understand how we can support Halifax Water in delivering those things,” he added.
Fillmore said the financial burden on residents is too heavy right now, and he’s hoping Halifax Water’s final approved increase will be in the “single digits, not double digits.”
“Let’s consider for a moment in the context of some other increases people are facing. Right now, before budget deliberations start with HRM, we’re at 10.9 per cent increase to the average tax bill. That’s too high. Certainly, the 36 per cent increase of Halifax Water was too high. There’s a Nova Scotia Power rate increase that’s coming that will be high,” he said.
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“We’ll have to wait and see how all that shakes out but … Halifax Water, HRM, all of us have a duty to tighten our belts in the same way that households are.”
Break-even basis, no profit component
In a statement, Halifax Water said its request was “driven by increased inflation, rising interest rates, depleted reserve funds, aging infrastructure and depreciation.”
The utility added that this will be the first increase in rates since April 2023.
The statement also noted that Halifax Water is a municipal utility that operates on a break-even basis, and no profit component is built into the rates.
“We are reviewing the impact of today’s decision and remain committed to providing reliable service to our customers and the environment,” general manager Kenda MacKenzie said in the statement.
“Our team works hard to provide reliable water, wastewater and stormwater service while controlling costs and maintaining good service for our customers.”
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