Halifax Water has applied for rate increases, stating that rising operational costs and financial deficits require adjustments to maintain services.
The proposed increases outlined in Halifax Water’s General Rate Application to the Nova Scotia Regulatory and Appeals Board (NSRAB) would see the average household’s yearly bill increase by about $148 in 2025–2026.
The utility also expects an additional yearly increase of about $187 in 2026–2027.
Its application includes a request for a 16.2 per cent increase in 2025–2026 and a 17.6 per cent increase in 2026–2027, which officials say is necessary to cover operating costs while maintaining service reliability.
Financial deficits and rising costs
The municipally owned utility, which operates on a cost-of-delivery model with no profit built into rates, says it faces a projected deficit of $18.7 million in 2024–2025, rising to $34.1 million in 2025–2026.
Halifax Water cites several contributing factors, including inflation, rising interest rates, regulatory requirements, aging infrastructure, and depleted reserve funds.
Officials explained that past decisions to hold off on rate increases during the COVID-19 pandemic resulted in the use of reserve funds, which have now placed financial strain on the utility’s operations.
Impact on customers and justification for the rate hike
Halifax Water acknowledges that many customers are already feeling the strain of rising costs.
Officials noted that these adjustments are necessary to prevent long-term financial instability that could impact service quality and infrastructure upgrades.
They also explained that the proposed rates are needed to support strategic investments in infrastructure and ensure safe, dependable water services for customers.
Before regulators make a final decision, customers will be able to submit feedback and participate in discussions through the NSRAB review process.
Halifax Water says it remains committed to maintaining service while managing costs effectively.
The NSRAB will assess financial details in the coming months before issuing a ruling.
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